Latent View's North America revenue share reaches 89% in Q2 FY27

Latent View Analytics Limited generated 89% of Q2 FY27 revenue in North America, and its five largest clients accounted for 56%. The company reported one-percentage-point declines in the top-five and top-10 client shares, while the latest-12-month mix shifted from clients contributing over Rs 50 crore toward the Rs 10 crore to Rs 50 crore band.

How geographically concentrated is Latent View revenue?

Latent View generated 89% of Q2 FY27 revenue in North America, with the remaining 11% split between rest of world at 9% and Europe & UK at 2%. North America therefore accounted for nearly nine-tenths of the company’s reported revenue mix in the quarter, while Europe & UK was the smallest reported geographical category.

Latent View’s industry mix adds a separate concentration measure, with technology contributing 55% of Q2 FY27 revenue. Financial services accounted for 21%, retail and CPG, or consumer packaged goods, for 15%, and industrials and others for 9%; together, technology and financial services supplied 76% of revenue.

Industry growth differed in the quarter. Technology revenue declined 0.3% quarter on quarter, while financial services grew 3.5%, retail and CPG increased 2.7%, and industrials and others rose 21.4%. The industrials and others segment recorded the fastest sequential increase despite representing the lowest revenue share among the four categories.

How much revenue comes from Latent View's largest clients?

Latent View’s top five clients accounted for 56% of revenue in Q2 FY27, according to the client-concentration disclosure. The reported change was down one percentage point, while the top 10 clients represented 71%, also down one percentage point, and the top 20 clients represented 84%, down two percentage points.

Latent View’s figures imply that clients ranked six through 10 contributed a combined 15% of Q2 FY27 revenue, calculated as the difference between the top-10 and top-five shares. Clients ranked 11 through 20 contributed another 13%, and clients outside the top 20 accounted for the remaining 16%.

The reported reductions did not remove the concentration shown by the Q2 FY27 shares: the top five alone supplied more than half of revenue, and the top 20 supplied 84%. The presentation gives the changes in percentage points but does not identify the comparison period for those change figures.

Has Latent View's revenue mix shifted across client bands?

Latent View shifted part of its latest-12-month revenue mix away from clients contributing over Rs 50 crore. That band accounted for 58% of revenue in LTM Q2 FY27, meaning the latest 12 months ended in Q2 FY27, compared with 63% in LTM Q1 FY27, a decline of five percentage points.

Latent View’s Rs 10 crore to Rs 50 crore band increased to 28% of revenue in LTM Q2 FY27 from 20% in LTM Q1 FY27. The Rs 5 crore to Rs 10 crore band increased by one percentage point to 8%, whereas the under-Rs 5 crore band fell by four percentage points to 6%.

The presentation lists six clients contributing over Rs 50 crore in LTM Q2 FY27, compared with five in LTM Q1 FY27. It also lists 12 clients in the Rs 10 crore to Rs 50 crore band, 10 in the Rs 5 crore to Rs 10 crore band and 68 below Rs 5 crore, compared with 16, 13 and 63, respectively, in LTM Q1 FY27.

What does Latent View disclose about client tenure and client count?

Latent View reported serving 97 clients in LTM Q2 FY27, up from 96 in LTM Q1 FY27. Of Q2 FY27 revenue, 66% came from client relationships lasting more than five years, 30% came from relationships lasting one to five years, and 4% came from clients with relationships of less than one year.

The tenure data means that clients retained for more than five years accounted for two-thirds of revenue in the disclosed mix. Clients in the one-to-five-year category supplied 30%, leaving 4% from relationships less than a year old.

The four listed LTM Q2 FY27 client-band counts total 96, while the presentation separately reports 97 clients served. Latent View does not provide a reconciliation for the one-client difference, so the next operating-metrics disclosure could clarify whether a client was excluded from the displayed band counts.

How did Latent View's Q2 FY27 financial metrics change?

Latent View reported revenue from operations of Rs 294.1 crore in Q2 FY27, up 14.2% year on year and 2.5% quarter on quarter. Reported profit after tax was Rs 48.5 crore, up 6.1% year on year and 2.9% quarter on quarter, while basic earnings per share was Rs 2.35.

Adjusted EBITDA, or earnings before interest, tax, depreciation and amortisation, was Rs 60.8 crore in Q2 FY27, an increase of 4.8% year on year and 3.7% quarter on quarter. The adjusted EBITDA margin was 20.7%, up from 20.4% in Q1 FY27, although it was 1.9 percentage points below the prior-year quarter.

Gross margin declined to 45.3% in Q2 FY27 from 48.0% in Q1 FY27. Latent View attributed the reduction to heavy nearshore projects and the impact of a wage hike, while selling, general and administrative cost as a share of revenue fell to 23.2% from 25.0%, which the company attributed to go-to-market resource rationalisation and lower marketing expenses.

Conclusion

Latent View’s Q2 FY27 disclosures show revenue concentrated both geographically and among larger customers: North America represented 89% of revenue, the top five clients represented 56%, and the top 20 represented 84%. At the same time, the LTM mix from clients contributing over Rs 50 crore fell from 63% to 58%, while the Rs 10 crore to Rs 50 crore band rose from 20% to 28%.

The next disclosure should show whether the reported one-percentage-point reductions in top-five and top-10 concentration continue, and whether North America’s 89% share changes. It should also clarify the difference between 97 clients served in LTM Q2 FY27 and the 96 clients obtained by adding the four disclosed client-band counts.