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LTM logged a mixed 1Q performance. Revenue grew 0.1% qoq to $1.2bn (0.3% CC), lower than our estimate, mainly due to delayed ramp-up of a large deal in India and war-related disruptions in Middle East (ME). EBITM expanded by 40bps qoq to 15.5%, above our estimate, largely led by operational efficiency. Deal wins remained healthy, with TCV of $1.68bn (incl 2 large deals; book-tobill: ~1.4x), increasing TTM TCV to $6.7bn. AI revenue across Creative, Industrial, and Business AI reached quarterly run rate of ~$150mn (~12% of LTM revenue). Management expects growth to accelerate in 2Q and 2H, on a strong order book, healthy deal pipeline across verticals, rising AI traction, completion of productivity-linked pricing transitions with major clients, and anticipated recovery in discretionary spends. LTM expects FY27 organic growth to exceed the ~6% growth in FY26 and margin to expand during FY27. We largely retain estimates; maintain ADD and TP of Rs4,350 at 18x Jun-28E EPS.

Results summary

Revenue grew 0.1% qoq to $1,224mn (0.3% CC). Revenue performance was muted due to impact of the lower seasonal pass-through revenue, delayed ramp-up in a large deal in India, and war-related disruption in the ME. EBITM expanded by 40bps qoq to 15.5%, above our estimate of 15.3%, mainly led by operational efficiencies from the ‘New Horizon’ program (40bps) and currency gain, partly offset by wage hike. Net profit grew 5.3% qoq to Rs14.7bn, beating our estimate, driven by Rs1.9bn fair-value gain on convertible instruments held in Voicing.AI, Inc. Top-5 clients grew 4.5% qoq, while top10 clients grew 4.3% qoq, indicating stability returning across major accounts. Headcount fell 0.1% qoq to 87,886. Utilization (ex-trainees) inched up by 70bps qoq to 86.4%. What we like: Healthy deal intake. What we do not like: Revenue miss, softness in Europe and Production/Consumer verticals, weak cash conversion (56% OCF/EBITDA)

FS and Tech & Services lead growth in verticals; NA leads among geographies

Vertical reporting has been consolidated into four segments, with growth led by Financial Services (3.2% qoq CC) and Tech & Services (3.4%), partially offset by decline in Production (-5.7%) and Consumer (-0.7%). Financial Services saw rebound in sequential growth, while Technology & Services continued to show strong momentum as topaccount headwinds abate in both verticals. Production declined due to a seasonal fall in pass-through revenue. Consumer declined due to delayed ramp-ups in India and Middle East. Across geographies, North America led the growth (2.4% qoq CC), offset by a decline in Europe (-1.6%) and RoW (-9.4%).

Aspires to accelerate growth in FY27; medium-term growth outlook reiterated

The management reiterated confidence in improving growth in FY27 vs FY26 on the back of its healthy order book and broad-based deal pipeline. It restated its medium-term aspiration of doubling revenue over next 5Y, given

1) Faster expansion in Europe via the Randstad acquisition

2) Deeper penetration into APAC white spaces

3) Scaling AI-led capabilities across Enterprise AI, Industrial AI and Creative AI

4) Anticipated recovery in discretionary spending

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