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Latentview reported 32% YoY revenue growth in FY25 to Rs 8,478 mn led by 63% growth in Financial Services, 22% in Technology, and 10% contribution from the acquisition of Decision Point Analytics. EBITDA rose ~40% to Rs 1,888mn, driven by improved employee cost efficiency which decreased to 66% in FY25 as compared to 67.7% in FY24, even as administrative expenses rose 29% YoY due to investments in cybersecurity and M&A-related legal costs. However, PAT grew modestly by 9% to Rs 1,733 mn, impacted by higher amortization from the acquisition and a drop in other income. Looking ahead, we estimate a Revenue/EBITDA/PAT CAGR of 24%/32%/30% over FY25-27E, underpinned by LatentView's early investments in GenAI, domain-specific solutions, and diversification across geographies. We maintain a target price of 635, implying 44% upside, backed by strong fundamentals, zero debt, and deep enterprise relationships.

Investment Rationale

Sticky Client Relationships Drive Revenue Stability- Latentview's growth is underpinned by deep, multi-year client relationships, with the top 10 clients averaging 8.2 years of engagement. The firm has consistently moved from pilot projects to managed services and strategic partnerships, allowing it to become embedded in client operations. With 93% client satisfaction, a +41 NPS, and long-standing ties with global software, e-commerce, and search engine leaders, Latentview ensures predictable, recurring revenue and opportunities for cross-sell and upsell

Develop supply chain expertise and build expertise in data Engineering While the US remains its largest market (90% of revenue), Latentview is actively diversifying into Europe and APAC, aided by client referrals and new mandates. The Decision Point acquisition has accelerated LATAM expansion (notably in Mexico and Brazil), where the firm is also building nearshore delivery for US clients. Europe is being addressed through subsidiaries in the UK, Germany, and Netherlands, aligning well with global client expansion

Fortify position via inorganic growth- The FY25 acquisition of Decision Point Analytics (Rs. 3,315 mn for 70% stake) added 300+ employees and expanded Latentview's footprint into Mexico, London, Santiago, Dubai, and Gurugram. Decision Point brings deep IP in Revenue Growth Management (RGM)-pricing, promotion, and assortment analytics-enhancing LatentView's CPG value proposition. The combined entity now has broader offerings in ConnectedView, retail segmentation, and GenAI, and contributes meaningfully to earnings growth

Partnerships with Global Technology Giants- Latentview has strategic partnerships with Databricks (data engineering), Snowflake (data cloud), GCP (cloud AI), and a GenAI-based code migration specialist. These relationships provide both capability upgrades and credibility while ensuring alignment with enterprise digital transformation stacks. Notably, Databricks Marketplace now features Latentview's AI-powered supply chain forecasting tools, reinforcing its domain leadership

Competent business strategy- While the US remains its largest market (90% of revenue), Latentview is actively diversifying into Europe and APAC, aided by client referrals and new mandates. The Decision Point acquisition has accelerated LATAM expansion (notably in Mexico and Brazil), where the firm is also building nearshore delivery for US clients. Europe is being addressed through subsidiaries in the UK, Germany, and Netherlands, aligning well with global client expansion

Early Leadership in Generative AI and Proprietary IP- Latentview has embedded GenAI in 8-10% of projects, with platforms like Beagle (NLP-based conversational BI) and the RAISE (Retrieve, Analyze, Implement, Sync & Execute) framework enabling contextual, real-time decisioning. The company also invests in Agentic AI, AI-driven supply chain systems, and MLOps CoEs, giving it a clear lead in next-gen enterprise analytics. These innovations help it mitigate service commoditization and maintain pricing power.

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