Dear Shareholders,

FY26 was characterized by a complex and evolving economic landscape. Clients continued to prioritize cost optimization, vendor consolidation, and disciplined discretionary spending. At the same time, investments in AI and digital transformation remained a clear priority, supported by the redeployment of savings from efficiency initiatives.

In this environment, our financial strategy was anchored in protecting balance sheet strength, sustaining cash flow, operational efficiency, and selectively investing in capabilities that support long-term growth.

Financial Performance and Quality of Earnings

During the year, we delivered steady financial performance, supported by a combination of demand resilience, disciplined execution, and operational efficiencies.

Revenue for FY26 stood at USD 4.8 Billion (FY25: USD 4.5 Billion), reflecting a growth of 5.3% in constant currency and 6.0% growth in USD terms. Order inflow remained robust at USD 6.6 Billion (FY25: USD 5.99 Billion), reflecting a year-on-year change of 10.3% underpinned by large deal wins and sustained client demand for transformation initiatives. INR revenue stood at INR 423,076 Million (FY25: INR 380,081 Million), reflecting a year-on-year growth of 11.3%.

Margins were supported by our cost optimization programs, operational improvements, and pyramid optimization. EBITDA margin stood at 17.9% (FY25: 17.1%), while EBIT margin was 15.4% (FY25: 14.5%). Net profit for the year stood at INR 49,827 Million (FY25: INR 46,020 Million), representing a year-on-year increase of 8.3%, with PAT margin at 11.8% (FY25: 12.1%) mainly due to a one-time provisioning impact of new labor codes enacted from Q3FY26.

Our focus remains on improving the quality of earnings by strengthening the proportion of recurring revenues and enhancing operating leverage across the business.

Capital Allocation and Investment Discipline

Our capital allocation approach continues to be guided by long-term value creation. We have prioritized investments in strategic areas such as AI platforms, capability building, and ecosystem partnerships, while maintaining a strong balance sheet.

Return on Equity (ROE) and Return on Capital Employed (ROCE) stood at 21.3% (FY25: 21.5%) and 27.1% (FY25: 27.2%) respectively, reflecting efficient capital utilization.

Diluted Earnings Per Share for FY26 was INR 169.13 (FY25: INR 155.00). Dividend payouts remained aligned with our commitment to delivering consistent shareholder returns, with total dividends of INR 19,911 Million during the year (FY25: INR 19,246 Million).

Cost Efficiency and Margin Management

Cost discipline has been a key focus area. The Fit4Future program delivered measurable improvements in cost structures and operational efficiency, contributing to margin resilience.

Productivity improvements were driven through enterprise-wide interventions across Delivery, support functions, and platforms — focused on improving utilization, reducing cycle times, and enhancing throughput.

The transition to the New Horizons program in FY27 will further extend these efforts, focusing on long-term productivity and structural efficiency.

Funding, Liquidity and Balance Sheet Strength

Our balance sheet remains strong and well-positioned to support future growth. Cash and investment balances, including strategic investments, stood at INR 153,801 Million as of March 31, 2026 (March 31, 2025: INR 134,328 Million), providing a stable liquidity base.

Operating cash flow conversion remained robust at 96.3%, reflecting strong cash generation and disciplined working capital management. Days Sales Outstanding (DSO) stood at 84 days (FY25: 79 days) due to a buildup on account of certain large deals.

The current ratio of 2.8 (March 31, 2025: 3.5) underscores our liquidity strength, while prudent treasury management and hedging strategies have helped mitigate currency risks.

CRISIL and India Ratings & Research have assigned AAA/Stable ratings for long-term facilities and A1+ for short-term facilities. These represent the highest level of credit quality in the Indian rating scale. The consistent ratings across agencies underline LTM’s strong balance sheet and liquidity, predictable cash flows, conservative leverage profile, and stable operating and business outlook.

Transforming Core Enterprise Functions through Responsible AI

• Scaled Agentic AI on Microsoft Copilot to 71,000+ employees who are reimagining the workplace — deploying AI as a core operating model in partnership with Microsoft.
• Achieved enterprise-scale adoption: 177+ AI solutions, 9 key processes transformed, 100% workforce access to GenAI; ~80% enabled with advanced tools and agent-building capability.
• Built standout AI agents: Agent A.S.K. for sales (context-aware RFP analysis + tailored response generation) and RAIma as an HR digital companion (chat/voice support integrated with core HR systems).
• Delivered measurable impact with strong governance: 70% faster IT+HR query self-resolution, 15% improvement in engagement/HR productivity; boosted engineering with ~21,000 developers assisted by AI daily and supported by 1,300+ trained AI champions improving productivity by 18-20% under responsible AI governance.
• Automated invoice validation and auto-parking in SAP, processing 16,000+ invoices with 60%+ autopark, significantly reducing manual AP effort and improving throughput.
• Scaled AI-assisted contract operations on SAP, enabling 900+ contracts to be set up with AI support and go-live of an AI-powered contract creation app on SAP BTP for the CFO function to boost efficiency and accuracy.

Risk Management and Governance

We continue to maintain a strong focus on risk management and governance. Our enterprise risk management framework has been recognized through external accolades, including the Golden Peacock Award for Risk Management. ICAI awarded LTM for ‘Excellence in Integrated Annual Report — BRSR’, a testimony to maintaining clarity, honesty, and depth in reporting and valuing integrity as much as profitability.

Our BlueVerse AI initiatives are governed by a robust Responsible AI framework that emphasizes accountability, strong controls, and human oversight. Through clear approval processes, data protection safeguards, and continuous monitoring, we ensure AI drives measurable value while maintaining regulatory compliance, financial discipline, and stakeholder trust.

Our approach emphasizes transparency, accountability, and proactive risk identification — ensuring potential challenges are addressed in a timely, structured manner.

ESG, CSR, and Sustainability as Value Drivers

Sustainability remains integral to our financial and strategic framework. Our ESG performance has been recognized globally, including a high FTSE Russell score and top-tier rankings in EcoVadis assessments.

During the year, our CSR initiatives reached 1,199,584 beneficiaries, spanning education, environment, empowerment, and health and nutrition programs. Within this, our Digitalization/STEM initiatives reached 514,490 beneficiaries, strengthening access to STEM and digital learning at scale. Our Tech4Future initiative aims to establish 82 STEM and digital labs in Tier II cities, supporting 25,000+ young minds through structured, future-ready curricula. Our LEED Platinum-certified campuses further demonstrate our commitment to environmental responsibility.

People And Talent

Our workforce remains central to our performance. As of the end of FY26, our headcount stood at approximately 88,000, with continued investment in talent acquisition and capability building.

Attrition rate dropped to 13.3% (FY25: 14.4%), reflecting improved employee engagement and retention initiatives. We continue to focus on diversity, equity, and inclusion, supported by structured programs and measurable outcomes, including targeted hiring programs, leadership diversity initiatives, and inclusive workplace frameworks.

Our employee value proposition is reinforced through various learning platforms enabling continuous learning, structured career progression, and capability development at scale. Investments in AI skilling and digital capability building — reflected in large-scale workforce training programs and deployment of digital agents — have strengthened workforce readiness to meet evolving client demands.

Thank you for your continued support.

This is our opportunity to Outcreate.

Regards,

Vipul Chandra
Whole-time Director & CFO