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LTM Eyes 50% AI Revenue by 2031
13 Jul
Summary
- LTM anticipates AI revenue to reach 50% of total sales within five years.
- AI currently constitutes 12.2% of LTM's quarterly revenue, totaling $150 million.
- LTM's net profit rose 5.3% sequentially to Rs 1,466 crore in Q1 FY27.
LTM, an Indian IT services firm, has set an ambitious target to derive 50% of its total revenue from artificial intelligence-related business within the next five years. This strategic foresight underscores the company's commitment to capitalizing on the burgeoning AI market.
As part of its five-year plan, LTM expects AI revenue to constitute half of its overall income. To achieve this, the company is actively investing in talent development, transformation programs, and reimagining its partner ecosystems. This focused approach aims to sustain the current momentum and boost AI revenue.
In the first quarter of fiscal year 2027 (Q1 FY27), LTM reported its AI revenue for the first time, estimating it at 12.2% of its quarterly earnings, which amounts to $150 million. This figure represents a larger share of AI business compared to industry giants like TCS and HCLTech, although TCS generates higher absolute AI revenue.
LTM's Q1 FY27 financial results, announced on July 11, showed a 5.3% sequential increase in net profit, reaching Rs 1,466 crore. Revenue from operations grew by 2.8% to Rs 11,608 crore compared to the previous quarter. Earnings before interest and taxes also increased by 5.3%, with margins expanding to 15.5%.
