Latent View Quarterly Results

Latent View's Q1 FY27 numbers show growth in business, but also pressure on profit. Revenue rose 21.6% year on year to ₹286.9 crore, while PAT declined 6.9% to ₹47.1 crore.

• Revenue rose 21.6% year on year.
• Profit after tax fell 6.9% year-on-year.
• Financial Services revenue jumped 110% year-on-year.
• Adjusted EBITDA margin slipped to 20.4%.
• AI-led revenue reached 35% this quarter.
• Full-year revenue growth guidance remains 12%.

Latent View delivered strong revenue growth in the quarter ended 30 June 2026, but profitability weakened.

Revenue from operations increased from ₹236 crore in Q1 FY26 to ₹286.9 crore in Q1 FY27. This was a 21.6% year-on-year rise. Sequentially, however, revenue was 0.6% lower than Q4 FY26.

Here are the main numbers:

The table shows why investors should look beyond revenue alone. Sales increased strongly, but PAT and earnings per share declined.

Profit fell because costs and margins moved in the wrong direction during the quarter.

Latent View's PAT declined from ₹50.6 crore in Q1 FY26 to ₹47.1 crore in Q1 FY27. Its PAT margin also fell from 19.5% to 15.3%.

Adjusted EBITDA increased to ₹58.6 crore from ₹52.3 crore a year earlier. However, the adjusted EBITDA margin dropped from 22.2% to 20.4%.

The company said annual wage increases had a major effect on margins. Lower revenue after some one-off projects ended and client-specific insourcing also affected the quarter. Lower travel costs provided some relief.

For a small investor, this is an important difference. A company can earn more revenue but still make less profit if its expenses rise faster.

Financial Services was one of Latent View's strongest areas in Q1 FY27.

Revenue from the Financial Services vertical grew 110% year on year. It also increased about 24% sequentially and accounted for around 20% of quarterly revenue.

Technology remained the company's biggest industry segment, contributing 58% of revenue. Retail and consumer packaged goods contributed 15%, while Industrials and other businesses contributed 7%.

This mix matters because it tells you where the company's growth is coming from. Strong Financial Services growth helped offset weaker performance in some other areas.

Artificial intelligence is becoming a larger part of Latent View's work.

The company's Q1 FY27 investor presentation reported that 35% of revenue was AI-led. Management also said AI was having an impact across a much larger part of its client engagements.

The company is working on Generative AI, multi-agent systems and other AI-led services. Its three-year priorities also include embedding AI across business processes and investing in employee skills.

For investors, the useful question is not simply whether the company uses AI. The bigger question is whether AI-related projects can produce sustained revenue growth without putting too much pressure on costs.

Latent View's margins weakened in Q1 FY27.

Adjusted EBITDA margin was 20.4%, compared with 24.1% in Q4 FY26 and 22.2% in Q1 FY26. Reported EBITDA margin was 19.8%, down from 21.4% a year earlier.

Management said annual wage increases reduced the adjusted EBITDA margin by around 2.7 percentage points sequentially. Lower revenue also reduced the margin, while lower travel costs provided a partial offset.

Management continued to guide for an EBITDA margin of around 21% to 22% for FY27. It also said further investments in technology, AI and partnerships could absorb some benefits from currency movements.

Latent View's Q1 FY27 results show two sides of the business. Revenue grew 21.6% to ₹286.9 crore, supported by strong Financial Services growth, but PAT fell 6.9% to ₹47.1 crore.

Margins also weakened after wage increases and lower sequential revenue. AI-led revenue reached 35%, giving investors another growth area to track. Going forward, watch profit growth, margins, Financial Services performance and progress against management's 12% FY27 revenue growth guidance before forming an investment view.