Latent View Analytics Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Latent View Analytics Ltd filed with BSE on 25 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
LatentView Analytics reported that FY26 revenue crossed the Rs 1,000 crore mark, with full-year growth of about 19-20% and EBITDA of about 23%, in line with earlier guidance. Management described AI-related work as roughly half of last year's revenue, with 28% having AI directly visible to clients and another 21% embedded, and detailed a large technology account shrinkage of $6.5-7 million that was partly offset by growth in BFSI and CPG retail. For FY27, management outlined visibility of 12-13% organic growth at the start of the year with an expectation to add further through the year, alongside guidance of 21-22% EBITDA margin.
Numbers mentioned
Revenue milestone: INR1,000 crores (FY26)
p. 6
“One of the, I would say, big positives for this year as we close the year was going past the INR1,000 crores mark, which is a fairly significant milestone for us.”
Rajan Venkatesan, page 6 of the filed PDF · View the filing
Revenue growth in USD terms since IPO: 2.2x (3-year period since IPO)
p. 6
“Even in dollar terms compared to the year in which we IPOed, we've roughly grown about 2.2x in about the 3-year time frame.”
Rajan Venkatesan, page 6 of the filed PDF · View the filing
Y-o-Y revenue growth (USD): 17% (Q4 FY26 vs Q4 FY25)
p. 7
“In terms of the Y-o-Y growth, for this particular quarter, in dollar terms, the revenue came in at about 17% higher than the previous year.”
Rajan Venkatesan, page 7 of the filed PDF · View the filing
Y-o-Y revenue growth (INR): 24.3% (Q4 FY26 vs Q4 FY25)
p. 7
“And in rupee terms, of course, because of the INR depreciation, the year-on-year growth came in at about 24.3% compared to the same quarter in the previous year.”
Rajan Venkatesan, page 7 of the filed PDF · View the filing
Adjusted EBITDA margin: 24.1% (Q4 FY26)
p. 7
“The adjusted EBITDA came in at about 24.1%, there was, of course, a benefit of forex, which was to the tune of about 1.1% on the overall EBITDA for this quarter.”
Rajan Venkatesan, page 7 of the filed PDF · View the filing
Full year EBITDA margin: 23% (FY26)
p. 7
“But on a full year basis, again, in line with what we had guided before, our business EBITDA for the full year came in at 23%, in line with what we had guided.”
Rajan Venkatesan, page 7 of the filed PDF · View the filing
EPS: INR2.55 (Q4 FY26)
p. 8
“You will see that for Q4 of FY '25, the EPS came in at about INR2.59 against that we are at about INR2.55.”
Rajan Venkatesan, page 8 of the filed PDF · View the filing
BFSI vertical growth: in excess of about 80% (FY26 vs FY25)
p. 7
“For the last year, we're very happy to report that the BFSI practice grew in excess of about 80% compared to the year before.”
Rajan Venkatesan, page 7 of the filed PDF · View the filing
Technology vertical share of revenue: about 55% (current quarter, down from ~70% 8 quarters back)
p. 7
“From there to now, you will see that the share of technology from the 70% has come down to about 55%.”
Rajan Venkatesan, page 7 of the filed PDF · View the filing
Rest of world share of revenue: about 15% (most recent quarter, up from 6% 8 quarters back)
p. 7
“We're happy to note that for the most recent quarter, our share of revenues from the rest of the world has increased to about 15% compared to 6%, 8 quarters back.”
Rajan Venkatesan, page 7 of the filed PDF · View the filing
AI-related revenue share (primary AI): about 28% (FY26)
p. 3
“we are happy to share that about 28% of our revenues for last year involves one of these three, where the AI aspect is clear and visible to the client”
Rajan Sethuraman, page 3 of the filed PDF · View the filing
AI-related revenue share (embedded/under the hood): another 21% (FY26)
p. 3
“And that is to the tune of another 21% in the work that we did last year.”
Rajan Sethuraman, page 3 of the filed PDF · View the filing
Organic growth: 18.2% or 18.3% (FY26)
p. 11
“Yes, the organic growth for the business would be 18.2% or 18.3% because please recollect that there is only one quarter of Decision Point revenue, which was not consolidated last year.”
Rajan Venkatesan, page 11 of the filed PDF · View the filing
Databricks ecosystem revenue: $17.5 million (FY26 full year)
p. 15
“So, on a full year basis, our revenue from the Databricks ecosystem put together is closer to about $17.5 million.”
Rajan Venkatesan, page 15 of the filed PDF · View the filing
Databricks ecosystem revenue: close to about $12 million (FY25 full year)
p. 15
“So, the previous year, the similar number was close to about $12 million.”
Rajan Venkatesan, page 15 of the filed PDF · View the filing
Gross margin: 50.8% (FY26 full year)
p. 18
“So, for the full year, we reported close to about 50.8% of gross margins for the last year.”
Rajan Venkatesan, page 18 of the filed PDF · View the filing
Gross margin on AI-led projects: 55% to 58% (FY26)
p. 18
“When you compare this with the gross margins that we are seeing on the AI-led projects, we are seeing gross margins in the range of 55% to 58%.”
Rajan Venkatesan, page 18 of the filed PDF · View the filing
BFSI full year revenue: close to about $18 million (FY26)
p. 9
“So, BFSI ended the year with close to about $18 million in revenue, and as the business continues to scale, you will see the incremental rate of growth dropping”
Rajan Venkatesan, page 9 of the filed PDF · View the filing
Technology account shrinkage: $6.5 million to $7 million (FY26)
p. 8
“In reality, some of the rationalization that happened subsequently as well or continue to happen meant that the total value of shrinkage was closer to about $6.5 million to $7 million.”
Rajan Venkatesan, page 8 of the filed PDF · View the filing
Fixed-bid vs T&M mix: 20% fixed-bid, 80% T&M (current)
p. 18
“So today, the ratio of fixed-bid to T&M for us will be closer to about 18% to 20%.”
Rajan Venkatesan, page 18 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — 12% to 13% · FY27, high visibility at start of year
stated conditionally by Rajan Venkatesan
p. 11
“So right now, the way we are looking at our current order book as well as pipeline, we have a reasonable level of confidence in terms of high visibility pipeline and order book to deliver about 12% to 13% of growth, and that is, of course, at the beginning of the year.”
Rajan Venkatesan, page 11 of the filed PDF · View the filing
Revenue growth — 18% to 20% · FY27
stated as an aspiration by Rajan Venkatesan
p. 11
“All those investments are obviously targeted to deliver a growth rate, which is very similar to what we delivered this year.”
Rajan Venkatesan, page 11 of the filed PDF · View the filing
EBITDA margin — 21% to 22% · FY27
stated conditionally by Rajan Venkatesan
p. 17
“what we planned for is an EBITDA between 21% to 22% for the revenue growth that we will deliver primarily on account of some of these upfront investments that we are making in the leadership hires on the AI CoE side as well as the Databricks side.”
Rajan Venkatesan, page 17 of the filed PDF · View the filing
Technology vertical growth — 5% to 8% · FY27
stated conditionally by Rajan Venkatesan
p. 13
“So, technology vertical for this year, our sense is that it should be between 5% to 8% growth on a year-on-year basis.”
Rajan Venkatesan, page 13 of the filed PDF · View the filing
Consumer vertical growth — 18% to 22% · FY27
stated conditionally by Rajan Venkatesan
p. 13
“Consumer should, our sense is right now, should grow anywhere between 18% to 22%.”
Rajan Venkatesan, page 13 of the filed PDF · View the filing
BFSI vertical growth — at least about 40% · FY27
stated conditionally by Rajan Venkatesan
p. 13
“But our sense is they should grow at least at about 40% for the next year, based on where we stand right now.”
Rajan Venkatesan, page 13 of the filed PDF · View the filing
Databricks portfolio growth — about 60% plus · FY27
stated conditionally by Rajan Sethuraman
p. 16
“On Databricks, Srinath, the expectation is that the Databricks portfolio of work will continue to grow at about 60% plus.”
Rajan Sethuraman, page 16 of the filed PDF · View the filing
Recovery of lost revenue in top technology account — at least 95% of prior year revenue · FY27
stated conditionally by Rajan Venkatesan
p. 17
“But right now, as we speak for this particular client, the current projection is that we will be at least at 95% of the revenue that we delivered with this client for the last year.”
Rajan Venkatesan, page 17 of the filed PDF · View the filing
Shift toward outcome-based and milestone-based contracting — increase from 20% fixed-bid share
stated as an aspiration by Rajan Sethuraman
p. 19
“So, Karan, the plan though is to shift a bit more to both milestone and deliverable based as well as outcome-based.”
Rajan Sethuraman, page 19 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management confirmed the shrinkage was larger than initially estimated but said active discussions are underway to recoup much of the lost revenue.
Answered by Rajan Venkatesan
Asked by Aditi Patil: Was the sequential drop in technology vertical revenue higher than previously indicated, and was there any other client-specific issue?
p. 8
“In reality, some of the rationalization that happened subsequently as well or continue to happen meant that the total value of shrinkage was closer to about $6.5 million to $7 million.”
Rajan Venkatesan, page 8 of the filed PDF · View the filing
Management said sentiment in technology is turning more positive due to AI-driven activity, though precise percentages will become clearer over coming quarters.
Answered by Rajan Sethuraman
Asked by Aditi Patil: What growth should be expected in the technology vertical for FY27?
p. 9
“Other than these 3 top accounts, in general, the sentiment in the technology space, given the amount of activity that is happening in relation to AI seems to be more positive rather than negative at this time.”
Rajan Sethuraman, page 9 of the filed PDF · View the filing
Management said BFSI's share of revenue actually increased sequentially and growth momentum remained strong.
Answered by Rajan Venkatesan
Asked by Aditi Patil: Was there a one-time revenue item in BFSI in Q3 that did not recur in Q4, given flattish sequential growth?
p. 9
“Aditi, even in relation to what we delivered for the last quarter, the share of BFSI revenue from 14% has gone to almost 16%, in this particular quarter on a sequential basis.”
Rajan Venkatesan, page 9 of the filed PDF · View the filing
Management clarified all reported revenue is LatentView's own, as clients bear infrastructure/token costs directly, and deal sizes range broadly.
Answered by Rajan Sethuraman
Asked by Karan Uppal: What is driving the deal sizes and revenue model for AI-related work, and how much is pass-through token cost?
p. 10
“Whatever revenue that we are reporting is all our revenue. It's got nothing to do with the token cost because the model that we use with pretty much all the clients that we are engaging with is that they take care of the infrastructure tokens, whatever LLM access and all that.”
Rajan Sethuraman, page 10 of the filed PDF · View the filing
Management said it is too early to observe such effects and expects services companies to remain necessary alongside model providers.
Answered by Rajan Sethuraman
Asked by Karan Uppal: Is there anecdotal evidence of OpenAI and Anthropic's new services arms taking work from third-party vendors?
p. 10
“It's too early to comment on that. I mean, obviously, they just have announced these launches.”
Rajan Sethuraman, page 10 of the filed PDF · View the filing
Management said the decline stemmed from consolidation with other partners and clients moving work in-house, not from budget cuts or price deflation.
Answered by Rajan Sethuraman
Asked by Vimal Jamnadas Gohil: Is the technology vertical decline due to project cancellations or deflation in pricing for similar volumes of work?
p. 12
“There has not been any shrinkage of budgets itself that we have seen. They've either been a reallocation to internal mechanisms or consolidation with other partners.”
Rajan Sethuraman, page 12 of the filed PDF · View the filing
Management pointed to potential margin gains from shifting more work offshore/nearshore and a favorable INR/USD rate persisting into next year.
Answered by Rajan Venkatesan
Asked by Vimal Jamnadas Gohil: With utilization near 90% and USD tailwinds already captured, are there further margin levers available?
p. 13
“One of the things that we are actively pursuing with the client is as we open new threads with the client, we want to do a lot more work either offshore or nearshore.”
Rajan Venkatesan, page 13 of the filed PDF · View the filing
Management attributed the rise mainly to a growing share of Decision Point/CPG revenue with longer credit terms, noting subsequent collections after year-end.
Answered by Rajan Venkatesan
Asked by Pritesh Thakkar: Why has DSO been increasing over the past two years and what is the steady-state expectation?
p. 14
“Decision Point, because they do a lot of work with CPG companies, CPG companies in general tend to have credit terms ranging between 90 to 120 days, and for this particular quarter, specifically because of the uptick in CPG revenue, which is largely driven by Decision Point, you did see that DSO days go up.”
Rajan Venkatesan, page 14 of the filed PDF · View the filing
Management said hiring-related professional charges impacted Q4 margin, and guided to a lower EBITDA margin for FY27 due to planned leadership investments.
Answered by Rajan Venkatesan
Asked by Aditi Patil: Were there unexpected cost headwinds in Q4 and will FY27 margins be below FY26 levels?
p. 17
“So that was incurred in this particular quarter, which did have, I would say, a marginal impact on EBITDA for this quarter.”
Rajan Venkatesan, page 17 of the filed PDF · View the filing
Management described the current mix and said there is no pricing deflation, as clients pay similar or more while expecting greater output from AI-driven productivity.
Answered by Rajan Sethuraman
Asked by Karan Uppal: What is the mix of time-and-material versus fixed-price contracts, and is there deflation in T&M pricing from AI productivity?
p. 19
“The second part of the question, there is no deflation on the way it works is that clients continue to engage our people.”
Rajan Sethuraman, page 19 of the filed PDF · View the filing
Risks flagged
Consolidation and in-housing of work at a large technology client leading to revenue shrinkage
p. 12
“The nature of the decline is twofold. One is a consolidation where they have decided to work with one of several partners. This has led to some amount of the decline.”
Rajan Sethuraman, page 12 of the filed PDF · View the filing
Rising DSO linked to longer credit terms in CPG business acquired through Decision Point
p. 14
“CPG companies in general tend to have credit terms ranging between 90 to 120 days, and for this particular quarter, specifically because of the uptick in CPG revenue, which is largely driven by Decision Point, you did see that DSO days go up.”
Rajan Venkatesan, page 14 of the filed PDF · View the filing
Higher travel and visa-related SG&A costs impacting margins
p. 7
“the positive impact of forex and the labour code-related restructuring was offset by higher spend on travel as well as SG&A, other items like visa.”
Rajan Venkatesan, page 7 of the filed PDF · View the filing
Tapering of one-off large CPG projects expected to reduce utilization and revenue in the following quarter
p. 13
“Yes, there will be some level of, I would say, normalization for the next quarter because some of these large projects that we executed, they will start sort of tapering off in the next quarter.”
Rajan Venkatesan, page 13 of the filed PDF · View the filing
Potential for enterprises to route more work to services arms of OpenAI and Anthropic
p. 4
“While there have been concerns around that in terms of what it means for services companies, I think it's also a validation that a very strong services”
Rajan Sethuraman, page 4 of the filed PDF · View the filing
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