LTM Q2 Results: Profit Flat at ₹1,398 Cr, ₹25 Dividend

LTM Limited — the company formerly known as LTIMindtree — closed the IT earnings week on Friday with a quarter that tells two stories at once. Revenue grew a healthy 13.6% year-on-year to ₹11,807.6 crore. But net profit barely moved, landing nearly flat at ₹1,397.9 crore. And the board sweetened the evening with a ₹25-per-share interim dividend, with October 23 as the record date. Here is what the numbers actually mean.

Quick Answer

LTM reported Q2 FY27 (July–September 2026) consolidated net profit of ₹1,397.9 crore, nearly unchanged from ₹1,401.1 crore a year ago and down 4.6% sequentially. Revenue from operations rose 13.6% YoY to ₹11,807.6 crore. EBIT margin improved 10 basis points to 15.6%. The board declared a ₹25-per-share interim dividend with a record date of October 23, 2026. Order inflow slowed to $1.26 billion from $1.68 billion last quarter — the number investors will watch most closely.

The headline numbers

The board approved the unaudited results for the quarter and half-year ended September 30, 2026, at its meeting on Friday, October 16 (limited review by Deloitte Haskins & Sells). Net profit: ₹1,397.9 crore — down a marginal 0.09% from ₹1,401.1 crore in Q2 FY26; down 4.6% from ₹1,466 crore in Q1 FY27. Revenue from operations: ₹11,807.6 crore — up 13.6% from ₹10,394.3 crore a year ago; up 1.7% from ₹11,608 crore last quarter. EBIT: ₹1,839 crore — up 2.2% sequentially, margin up 10 basis points to 15.6% from 15.5%. Interim dividend: ₹25 per share, record date October 23, 2026. Order inflow: $1.26 billion, down from $1.68 billion in Q1 and $1.59 billion a year ago. Profit also came in below some analyst estimates, which is why the "flat" headline reads as a mild disappointment against expectations.

Why profit is flat while revenue grew 13.6%

Revenue growth with flat profit means costs grew almost as fast as income. In IT services, that usually comes from wage hikes flowing through, higher subcontractor costs, and a shift in deal mix toward lower-margin work. The margin picture actually improved slightly — EBIT margin rose to 15.6% — which tells you the flatness is more about the year-ago comparison and sequential cost pressures than a structural problem.

The AI bet: 47% growth in Enterprise AI and Business AI

CEO Venu Lambu's message leaned hard on the AI story: revenue from Enterprise AI and Business AI combined grew 47% year-on-year, and the company added a financial services client to its $100-million-plus category. Treat the 47% as a growth signal from a small base: directionally encouraging, not yet the main engine.

The number to watch: order inflow fell to $1.26 billion

Revenue tells you what happened; order inflow tells you what might happen next. LTM's $1.26 billion of order inflow is down sharply from $1.68 billion last quarter and $1.59 billion a year ago. In IT services, deals signed today become revenue over the next 2–4 quarters, so a weak bookings quarter can cast a shadow on growth two quarters out. One soft quarter doesn't make a trend — but if the next quarter shows the same softness, the market will start pricing in slower growth.

Segment and geography split

Financial services — LTM's largest vertical — grew just 0.4% year-on-year in constant currency, the softest of the segments. Consumer grew 8.6%, production 7.4%, and technology and services 7%. North America, which accounts for 74.3% of revenue, grew 4.8% in constant currency; Europe grew 7.2% and the rest of the world 4.4%. Attrition stayed flat at 13.3% quarter-on-quarter.

The ₹25 dividend: what the October 23 record date means

The board declared an interim dividend of ₹25 per equity share (face value ₹1). The record date is Friday, October 23, 2026 — shareholders on the company's books at the close of that date are eligible. A quick educational note: dividends are not free money. The share price typically adjusts downward by roughly the dividend amount on the ex-date, and dividends are taxable in your hands at your slab rate. What a ₹25 interim dividend signals is balance-sheet comfort.

Where this fits in the IT earnings week

LTM is the last of the big IT names this week: TCS reported on October 8, HCLTech on October 12, and Wipro and Tech Mahindra yesterday. The common thread: revenue growth in the high single to low double digits, margins holding or improving slightly, and management teams pointing at AI-led deals as the next leg. The next major checkpoint is Infosys on October 23 — which is also LTM's dividend record date.

This article is for educational purposes only and is not financial advice. Please consult a SEBI-registered investment adviser for personalized guidance. Investments are subject to market risk.