Synopsis
LTM CEO Venu Lambu downplayed AI-led deflation concerns, framing pricing pressures as normal market evolution requiring adaptation. He emphasized execution as the key challenge amidst a generational technology shift, with LTM restructuring into three service lines, including a new business AI unit, to drive growth and double revenue.Listen to this article in summarized format
He said the idea that firms are widely walking away from deals due to lower pricing is not a trend, but rather a one-off case, and vendors must instead focus on improving efficiency and competitiveness. “If that’s what the price the market expects, if that’s what the client expects, we have to reimagine the cost… and deliver to the right profitability level,” Lambu said.
His comments follow LTM’s, formerly known as LTI Mindtree, larger rivals Tata Consultancy Services and Wipro reporting decline in FY26 revenues, while HCLTech moved away from a $1 billion deal due to unrealistic price demands from clients.
On the broader environment, Lambu said the real challenge is not macro demand but execution, as the industry is undergoing a full-stack transformation across infrastructure, applications and AI layers, requiring significant organisational change.
“The risk is actually the execution risk…this is a generational shift across the stack of technology,” he said, adding that companies must manage this transition while continuing to deliver performance. “We have to continue to perform while we transform… it requires a lot of execution muscle.”
LTM is restructuring its business into three core service lines and seeking to deepen its presence in markets such as Europe, Middle East, besides scaling emerging verticals like healthcare, life sciences, utilities, automotive, and aerospace.
Last week, LTM reported a 18.8% on-year growth in net profit at Rs 1,341 crore for the March quarter, though sequentially profit fell 4.3% weighed down by one-time exceptional items. The company posted revenue of Rs 11,292 crore for the March quarter, up 4.7% sequentially and 15.6% on-year, driven by improving deal momentum, despite a tepid macro environment.
As per its five-year ‘Lakshya’ strategy, LTM is aiming to double annual revenue from $4.8 billion currently. In rupee terms, the company reported revenue of Rs 42,308 crore in FY26, an 11% increase over FY25.
The three business lines are – iRun (core IT operations), iTransform (modernisation and cloud), and a new “business AI” unit for agentic AI, Lambu said. While all three will be growth drivers, Lambu said the biggest upside lies in new AI-led services.
“Business AI is a completely new addressable spend… hence in terms of growth percentage, obviously business AI will have a higher growth compared to the other two,” he said.
On workforce, the company plans to continue hiring fresh graduates while reducing reliance on lateral hiring. Wage hikes at LTM are now split between two quarters and linked to employee reskilling for AI.
