Both Anand Rathi and Motilal Oswal have issued buy ratings on LTM with significantly different target prices. According to Anand Rathi's research report dated July 12, 2026, the brokerage maintains a buy rating with a revised target price of ₹4,734, up from the previous target of ₹4,337. Meanwhile, Motilal Oswal has set an even higher target of ₹4,900 in its July 12, 2026 report, implying approximately 21% upside from current market levels. LKP Research has now joined the bullish consensus with a buy rating and target price of ₹5,130 in its July 14, 2026 report, also based on 21x FY28E EPS valuation. At the current market price, LTM trades at FY27e/28e P/E ratios of 21.3x/17.5x respectively.
As reported by Anand Rathi, LTM opened FY27 with revenue of $1,224 million, representing 0.3% quarter-on-quarter growth and 6.4% year-on-year growth in constant currency terms. The company achieved an EBIT margin of 15.5%, improving by 40 basis points quarter-on-quarter despite absorbing approximately 100 basis points of wage hike. Motilal Oswal notes that revenue came in above their estimate of flat revenue QoQ in constant currency, with EBIT margin at 15.5% also exceeding their estimate of 15.1%. According to LKP Research, the growth was led by BFSI (+3.2% QoQ CC) and Technology & Services (+3.4% QoQ CC), supported by improving demand in North America (+2.3% QoQ), while Consumer declined 0.7% QoQ CC due to delayed India government project ramp-ups and Gulf-related travel weakness. The company maintained a stable order book of US$1.7 billion, showing 3.1% year-on-year growth and including 2 large deals.
According to Anand Rathi's analysis, the Financial Services segment (34% of revenue) grew 3.2% while the Tech segment (20% of revenue) expanded 3.4%. Management indicated that productivity-linked pricing transitions in top accounts are now complete, resetting FY26's 6% year-on-year USD growth as the FY27 baseline. LKP Research reports that demand remained healthy with order inflow/TCV of USD 1.68bn (+3.1% YoY), including two large deal wins, while the top-5 and top-10 clients grew 4.5% and 4.3% QoQ CC, respectively. Motilal Oswal expects revenue/EBIT/adj. PAT to grow 13.6%/14.6%/14.2% YoY in 2QFY27, with the company guided for organic growth acceleration through Q2 and H2 FY27, with further margin expansion expected, particularly in Financial Services and North America.
As reported by Anand Rathi, the brokerage has revised FY27e and FY28e revenue and EPS estimates by 0.4% and -7.8% respectively, with FY27e PAT impacted by hedge losses. The company expects hedge losses of approximately ₹2,664 million in Q1, representing 2.3% of revenues. With an expected FY26-28e adjusted EPS CAGR of 11.9%, Anand Rathi maintains its optimistic outlook on LTM's execution excellence under the leadership of Mr. Venu Lambu. LKP Research notes that adj. PAT came in at ₹14.7b, up 9.5% QoQ/17.1% YoY in Q1, in line with their estimate of ₹15b. The brokerage maintains its bullish outlook with their BUY rating and ₹5,130 target price, reflecting a calibrated moderation in valuation multiple to account for prevailing uncertainty.
According to Anand Rathi's research, key risks include prolonged slowdown in discretionary IT spending, execution risk in bookings to revenue conversion, geopolitical escalation in the Middle East (<3% of revenue) potentially delaying Consumer segment ramps-ups, and closure and integration of the Randstad acquisition. Given the hedge book of approximately $5.0 billion, further rupee depreciation can drive forex losses, weighing on the bottom-line. LKP Research acknowledges that growth was muted yet stable, with resilient execution despite delays in the Consumer vertical and weakness in Europe/RoW. Despite these challenges, Anand Rathi remains optimistic about LTM's continued execution excellence and growth trajectory, while LKP Research maintains its bullish outlook with their BUY rating and ₹5,130 target price, implying approximately 21% upside from current levels.
