Latent View Q2FY26 Results: Revenue Surges 23% to ₹257 Crore

Introduction to Q2 Performance

Latent View Analytics Ltd, a global data and analytics firm, announced strong financial results for the second quarter of the fiscal year 2026, ending September 30, 2025. The company reported its eleventh consecutive quarter of revenue growth, showcasing resilience in its business model. The performance was highlighted by a significant 23.2% year-over-year (YoY) increase in operating revenue, which reached ₹257.54 crore. This growth reflects robust demand for its services, particularly within the financial services and consumer packaged goods (CPG) sectors.

Detailed Financial Breakdown

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter stood at ₹56.1 crore, marking a 23.9% increase compared to the same period last year. The EBITDA margin remained healthy at 21.8%. Profit After Tax (PAT) also saw a notable rise, growing by 14.6% YoY to ₹45.7 crore. This consistent profitability underscores the company's efficient operational management and its ability to convert revenue growth into bottom-line gains for its shareholders.

Segment Growth and Business Drivers

Growth during the quarter was broad-based, with the Financial Services practice delivering exceptional results. This segment expanded by 94% YoY and 29.9% sequentially, indicating strong client demand and successful project execution. The CPG and Retail practice also contributed significantly, growing by 23% YoY, supported by new client acquisitions and the successful integration of Decision Point, an acquisition made a year prior. Management noted that synergies from this acquisition are becoming increasingly evident, particularly in near-shoring operations and go-to-market strategies.

Management Commentary

Rajan Sethuraman, the Chief Executive Officer, expressed satisfaction with the consistent performance. He highlighted the company's focus on an AI-first strategy, aiming to build differentiated Generative AI and Agentic AI solutions to solve critical enterprise challenges. He also pointed to the growing traction of the company's Databricks practice, which is benefiting from sustained investments in capability building. Looking ahead, the company anticipates that its GenAI practice could double its revenue contribution to 12-14% by the end of FY26.

Chief Financial Officer Rajan Venkatesan commented on the financial health of the company. He attributed the margin expansion during the quarter to strong operational rigor. He confirmed that investment focus for the remainder of the year would be on research and development within the AI Center of Excellence and the Databricks practice, viewing these as critical for sustained growth and maintaining a differentiated market position.

Key Financial Metrics Summary

To provide a clear overview of the quarterly performance, the key financial metrics are summarized below.

Balance Sheet and Stock Performance

Latent View Analytics maintains a strong and healthy balance sheet. The company is debt-free, with a debt-to-equity ratio of zero, which provides significant financial flexibility. As of the latest data, the promoter holding remains stable at 65.20%. The stock has a market capitalization of approximately ₹9,553 crore. Over the past year, the stock has traded within a 52-week range of ₹341.20 to ₹517.50. While the company demonstrates strong growth, its Price-to-Earnings (P/E) ratio is high at over 111, indicating a premium valuation by the market.

Analyst Outlook and Market Position

Analysts have generally maintained a positive outlook on Latent View Analytics. Consensus recommendations lean towards 'Buy', with some research firms like Prabhudas Lilladher setting a price target of ₹600. The company is included in the BSE 500 index, reflecting its standing in the broader market. Its focus on high-growth areas like digital analytics, AI, and big data positions it well to capitalize on ongoing digital transformation trends across industries.

Conclusion and Forward Look

Latent View Analytics' Q2FY26 results demonstrate strong execution and sustained growth momentum. The company's strategic focus on AI and its partnership with Databricks are expected to be key drivers for future expansion. While the stock's high valuation requires careful consideration from investors, the robust financial performance, debt-free status, and clear growth strategy provide a solid foundation for its long-term prospects. The management's continued investment in R&D will be crucial for maintaining its competitive edge in the rapidly evolving data analytics landscape.