LatentView revenue rises 14.2% to 2,940.68 million rupees in second quarter
Key Facts
LatentView Analytics on October 31 reported results for the quarter ended September 30, 2026, with consolidated revenue from operations of 2,940.68 million rupees, up 14.2% from the year-earlier period and 2.5% from the previous quarter. Consolidated net profit rose to 485 million rupees, up 6.1% year on year and 2.9% quarter on quarter, while basic earnings per share was 2.35 rupees. Revenue growth outpaced profit growth as the adjusted EBITDA margin fell year on year. Adjusted EBITDA was 608 million rupees, with a margin of 20.7%. Year on year, the margin declined 1.9 percentage points, despite rising 0.2 percentage points from the first quarter.
First-half results show a divergence between revenue and profit growth. Revenue rose to 5,809.44 million rupees, compared with 4,935.65 million in the corresponding period of the previous fiscal year. But profit for the period fell to 955.71 million rupees from 962.91 million. In the second quarter alone, profit before tax was 654 million rupees, up 6.0% year on year and 0.2% quarter on quarter. The profit-before-tax margin was 21.0%, down 1.4 percentage points year on year. The company also reported unadjusted EBITDA of 598 million rupees and a margin of 20.3%, compared with 19.8% in the previous quarter.
Gross margin fell to 45.3% in the second quarter from 48.0% in the first quarter, which the company attributed to execution-intensive projects near client locations and the impact of wage increases. In contrast, selling, general and administrative expenses as a share of revenue declined to 23.2% from 25.0% in the previous quarter. The cost of the center of excellence also fell to 1.4% of revenue from 2.6%, after AI employees were moved into billable roles. The presentation indicated that these shifts accompanied a stable adjusted margin, which rose 0.2 percentage points quarter on quarter to 20.7%. The company said it is focused on operational efficiency and capital allocation discipline to preserve profitability.
Dollar-denominated business grew 2% quarter on quarter, according to the chief executive, who described growth as broad-based and led by automotive, with gains in financial services, consumer goods and retail. By industry, industrials and others rose 21.4% quarter on quarter, financial services increased 3.5%, and retail and consumer goods gained 2.7%, while technology fell 0.3%. Technology remains the largest component of the business, accounting for 55% of quarterly revenue, compared with 21% for financial services, 15% for retail and consumer goods, and 9% for industrials and others. This mix provides context for the divergence in sector growth: the largest sector edged lower, while industrials and others recorded the biggest quarterly increase. The chief executive said economic sentiment and pressure in the technology sector could affect near-term performance.
Geographically, 89% of revenue came from North America, compared with 2% from Europe and the United Kingdom and 9% from the rest of the world. The top five clients accounted for 56% of revenue, while the shares of the top ten and top twenty rose to 71% and 84%, respectively. The company served 97 clients in the twelve months ended in the second quarter, compared with 96 through the first quarter. This concentration leaves revenue heavily dependent on the North American market and a limited group of large clients. The backdrop is continued reliance on spending in sectors such as technology and financial services, while management said the impact of economic sentiment could be short term.
New engagements included a project with a global online marketplace to improve delivery forecasts and execution efficiency, and support product decisions with AI. The company also announced projects for a major Indian consumer electronics maker, a leading apparel company, a wealth management software provider and an Indian telecommunications company. The engagements also included consolidating databases, analytics and AI into a modern architecture for a global financial services and insurance company, alongside an analytics infrastructure modernization for a cybersecurity and infrastructure provider. The work targets applications ranging from real-time business intelligence to product decisions and execution improvements. Management said it expects a near-term impact from economic and technology-sector pressures, but is confident in its medium- and long-term growth prospects.
LatentView identified three strategic priorities for the next three years: data engineering in partnership with Databricks, deepening relationships with higher-value accounts, and integrating AI into business operations while investing in employee upskilling. The chief executive said the company plans to expand its geographic presence and strengthen leadership to support its technology and AI offerings. In the market, shares closed at 210.45 rupees on the BSE on October 30, down 4.56% during the session, while they closed at 210.39 rupees on the NSE, down 4.47%. The results conference call with investors and analysts was scheduled for November 2, 2026, at 09:00 a.m. India time. The call is expected to give management an opportunity to present performance details and growth priorities.