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LatentView delivered a resilient 1QFY26, with strong revenue growth (+32% YoY) despite temporary headwinds in the technology vertical and a seasonally elevated cost structure. The BFSI segment is scaling rapidly (+48% YoY / +21% QoQ), and early monetization of GenAI initiatives and the Databricks partnership provide visibility for multi-year growth. Nearterm margin pressure (230 bps QoQ decline) appears transitory, linked to performance-linked compensation restructuring. We maintain BUY with a revised TP of Rs. 590 (based on 48x June FY27E EPS of Rs. 12.3), implying a 31% upside.

1QFY26 Management call highlights:

Business highlights

* Added 7 new good quality logos, out of which 3 accounts have high growth potential in next 12-18 months

* Financial Services continues to be the fastest-growing vertical. The revenue grew +21.3% QoQ and +48.4% YoY. 2 new accounts which were added in last 6 months are showing good growth (one projected to contribute $5M annualized revenue in 12 months)

* Signs of revival in the Consumer Goods segment, with new client wins and increasing strategic conversations in R&D and innovation, supply chain capabilities (procurement, inventory planning, and manufacturing, on shelf availability) and integrating that with RGM capabilities. Gaining traction with CIO/CTO-level buyers. Decision Point business expected to outperform core growth due to smaller base and rebound in the consumer vertical.

* Technology vertical remained flat QoQ due to wind down of large discretionary one-off Q4 projects and delays in signing follow-up work; recovery expected in Q2 and signing of 2-3 logos.

* Databricks Partnership: Strong traction in Consumer Goods. Joint Generative AI workshops-landed a major apparel client worth up to $2M over 12 months. Expanding into 15 more such workshops in the US with Databricks. Building a Databricks Center of Excellence with dedicated sales, solution, and delivery teams. LatentView tools like MigrateMate now part of Databricks Brickbuilder portfolio. Expanding capabilities in SAP data migration.

* Generative & Agentic AI CoE: Leadership appointed; team staffed with 10 (including internal experts and PhD interns), FY26E- $6 million confirmed contracts; $8 million in the pipeline. Use cases span marketing content generation (AIgenerated AV/text content), automated business reports in asset management and financial services. Platforms of focus: Gemini, Azure AI Foundry, and Databricks.

* Chief Client Officer Krishnan Venkata to exit on September 8 after 17 years. His direct reports will transition temporarily to CEO Rajan Sethuraman.

* Hiring Strategy- Focus on curiosity, domain expertise, problem-solving, self-motivation. Training ecosystem encourages skill-building in dynamic domains like AI. Impact on client delivery is a core evaluation metric. Future outlook and Guidance

* Revenue growth guidance for FY26: 18-19%, with a potential to exceed 20%

* Targeting Rs.200 crore incremental revenue over 3 years from 26 strategic accounts- Enhanced sales rigour and process tracking from lead to closure, focus on identifying new opportunities and white spaces

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