LTM's AI revenue grows 47%, but deal wins fall

LTM Limited (LTM) reported Q2 FY27 revenue of ₹11,808 crore, up 13.6% year on year. Net profit fell 4.6% sequentially to ₹1,398 crore, while quarterly deal wins dropped to $1.26 billion from $1.68 billion. The contrast is worth examining. LTM's enterprise and business AI revenue grew 47% year on year. That suggests clients are spending on AI-related services. Yet total deal wins fell by about 25% from the previous quarter. My view is that AI demand is a positive, but it does not automatically mean stronger overall growth. Some AI projects are short-term or focused on specific tasks. Investors need to see whether those projects expand into larger, recurring contracts. There is another concern. Revenue increased 1.7% sequentially, but net profit declined. EBIT margin improved slightly to 15.6%, so the profit decline deserves a closer look at costs below the operating line rather than assuming operating performance weakened across the board. The next trigger is Q3 FY27 results. I will watch whether deal wins recover, AI revenue continues growing and sequential revenue growth improves without margin pressure. My stance: AI is an important growth opportunity for LTM, but I would want stronger deal momentum and better profit conversion before becoming more positive.