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The company reported a consolidated EBITDA growth of 37% YoY/11%QoQ, driven by a 38% YoY/ 9%QoQ revenue growth. Thisrobust growth wassupported by a 22% YoY/9%QoQ rise in organic revenue, fueled by strong momentum in consulting, Generative AI (GenAI) projects, and new client acquisitions. However, PAT declined 8% YoY due to a 36% YoY/35%QoQ reduction in other income. During the quarter, LatentView secured a $3.2 million partnership with a global technology leader to deliver an integrated, scalable business intelligence and data engineering solution. Additionally, the company on boarded nine new clients, including three returning clients, and initiated ten GenAI projects. While the company acknowledged challenges in the CPG sector, it has maintained its long-term revenue growth guidance of 25%-30% at a 25% EBITDA margin, reinforcing confidence in its future outlook

3QFY25 Analyst Call Highlights

* Management indicated challenges in the market conditions for CPG companies, which has resulted in subdued performance leading to consolidation and cost-cutting. This could impact revenue from LATAM and China. The company is being cautious about guidance for the full year and FY26E due current market headwinds. (CPG contributes ~20% to the topline

* The company reaffirmed its revenue outlook of $100-$105 million for FY25E, which was previously outlined during the Analyst Day in 2QFY25. Revenue growth 4QFY25E is expected to be between 2% to 3% on a sequential basis and EBITDA margin in the range of 24%-25% for 4QFY25. The company expects a 35%YoY jump in its order book by the end of FY25.

* The company is in the process of putting together a strategic plan to deliver $200-$220 million in revenue over the next 3 years, as previously outlined during the Analyst Day.

* In the long-term, the company aims to maintain an EBITDA margin between 20%-25%. The company expects to deliver 25% to 30% growth at 25% EBITDA margin.

* Adjusted for the Forex loss, the EBITDA margin was already at about ~25% in 3QFY25.

* The company expects to deliver a 20% PAT margin in the longterm excluding the impact of the ForEx loss.

* The company's overall headcount, including Decision Point employees, stood at around 1,600 plus employees.

* A retention bonus is being offered to a set of critical employees who came with the Decision Point acquisition, which will be paid out at the end of a two-year period.

* AI Strategy

* The company is seeing traction in the AI/ML space, with over 10 new engagements in the generative AI space this year. o About 10% of the company's current work is focused on generative AI, with expectations that this will increase to around 20% next year.

* The company is building solutions that incorporate generative AI and agentic AI, with a strong pipeline of generative AI projects.

* The company may need to make investments in building out GenAI capabilities and newer gen capabilities, which could require reinvestment back into the business, estimated to be between 1%- 2% of EBITDA

Outlook & Valuation

LatentView is currently trading at a P/E multiple of 56x, which we believe is justified given its scaling GenAI initiatives, expansion in high-value consulting and data engineering, and a robust 35% YoY growth in its order book.

However, softnessin the CPG sector and broader market conditions may temper near-term revenue growth. Given this backdrop, weadjust our assigned multiple to 52x (earlier 55x) to factor in a more conservative outlook.

We expect LatentView to deliver a Revenue/EBITDA/PAT CAGR of 27%/ 33%/21% over FY24-27E. Rolling forward EPS to December 2026 at 13.1, we arrive at a target price of 649, implying a 44% potential upside from current levels.

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