Low PE, High ROCE IT Services Major Reports 17% YoY PAT Growth; Share Price Jump Over 2%

On Monday, Indian equity benchmarks traded lower, with the benchmark Nifty 50 index declining 0.22 per cent to 24,154.25. Despite the broader market weakness, LTM share price traded at Rs 4,137, up 2.47 per cent or Rs 99.80 from the previous close, as the company released its Q1 FY27 financial results alongside a strategic partnership announcement with Anthropic.

LTM Limited Q1 Performance

LTM reported consolidated revenue from operations of Rs 11,608 crore for the quarter ended June 30, 2026, up 18 per cent YoY from Rs 9,841 crore in Q1 FY26 and 3 per cent QoQ from Rs 11,292 crore in Q4 FY26. Total income, including other income, stood at Rs 11,863 crore against Rs 10,233 crore in Q1 FY26.

Net profit came in at Rs 1,469 crore, up 17 per cent YoY from Rs 1,255 crore in Q1 FY26 and 6 per cent QoQ from Rs 1,387 crore in Q4 FY26. PBT stood at Rs 1,978 crore against Rs 1,726 crore a year ago. Total expenses for the quarter were Rs 9,885 crore, rising 16 per cent YoY from Rs 8,507 crore, with employee costs at Rs 6,962 crore forming the largest component.

Segment Performance

Growth in Q1 FY27 was spread across all four business segments. Financial Services revenue grew to Rs 3,951 crore from Rs 3,634 crore in Q1 FY26, while Consumer segment revenue rose sharply to Rs 3,087 crore from Rs 2,375 crore. Technology & Services revenue increased to Rs 2,316 crore from Rs 1,901 crore, and Production segment revenue came in at Rs 2,255 crore versus Rs 1,930 crore a year earlier.

On segment results, Consumer posted Rs 558 crore, Financial Services Rs 594 crore, Technology & Services Rs 515 crore, and Production Rs 395 crore in Q1 FY27, with total segment results at Rs 2,061 crore against Rs 1,649 crore in Q1 FY26.
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Partnership With Anthropic To Embed Claude Into Enterprise Delivery

Alongside the financial results, LTM announced on July 13, 2026, a partnership with Anthropic, the AI company behind the Claude family of models, to accelerate enterprise-scale adoption of Claude, Claude Code and Claude Cowork across engineering, modernisation and business workflows.

The partnership is structured around three areas. LTM's BlueVerse AI Delivery Fabric will serve as the enterprise implementation layer for Claude, integrating the models into delivery workflows spanning AI-led software engineering, application modernisation, agent orchestration, site reliability engineering, observability and chaos engineering.

LTM will also scale its AI1000 programme to train and deploy Claude-certified architects and Forward Deployed Engineers who can work with clients from assesSMEnt through implementation.

Further, LTM will establish a dedicated Claude Centre of Excellence to build reusable skills, agentic minimum viable products, reference architectures and playbooks for cloud-native and platform-based applications, covering responsible AI use, agent lifecycle, model governance and data-privacy compliance.

The partnership will also include joint go-to-market initiatives aimed at measurable business outcomes. LTM will embed Claude, Claude Code and Claude Cowork internally to establish consistent adoption patterns and productivity benchmarks across its software delivery lifecycle.

About LTM

LTM, a Larsen & Toubro Group company, is a global technology services firm headquartered in Mumbai. It operates across integrated services, transformation and business AI, serving clients across 40 countries through a network of over 87,000 employees. Further company currently trades at a price-to-earnings (P/E) ratio of 21.9 times and has a return on capital employed (ROCE) of 29.6 per cent.

The company focuses on helping clients build, modernise and run software, with a growing emphasis on AI-enabled delivery across industry verticals, including BFSI, hi-tech, consumer and manufacturing.

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Disclaimer: The article is for informational purposes only and not investment advice.