Latent View revenue grew 1.85x since FY23 as FY26 margin eased

Latent View’s revenue rose 1.85 times from FY23 to the last twelve months (LTM) ended Q2 FY27, reaching $123.9 million. In FY26, operating revenue increased 25% to Rs 1,060.2 crore, while adjusted earnings before interest, tax, depreciation and amortisation (adjusted EBITDA) margin declined 0.7 percentage points to 23.0%.

How much has Latent View’s revenue grown since FY23?

Latent View’s revenue grew 1.85 times between FY23 and LTM Q2 FY27, rising from $66.9 million to $123.9 million. The series increased in each disclosed period: $77.7 million in FY24, $100.0 million in FY25 and $119.8 million in FY26. Management attributed the multi-year growth to strong relationships with its top customers.

Latent View reported a 19.3% compound annual growth rate (CAGR) from FY23. The CAGR is an annualised growth measure, and the stated rate covers the progression from the FY23 revenue base through the LTM Q2 FY27 level. The presentation does not assign the overall growth to a specific geography, product or client.

Industrials was a reported faster-growing vertical at the time of the presentation, with revenue up 21.4% quarter on quarter and 68.8% year on year. These rates apply to Industrials rather than Latent View’s consolidated revenue. The presentation does not disclose Industrials revenue in dollars or rupees, or state its proportion of total revenue.

How did Latent View’s FY26 revenue and profit change?

Latent View reported FY26 operating revenue of Rs 1,060.2 crore, up 25% versus FY25 and 65% versus FY24. Adjusted EBITDA increased 21% to Rs 243.8 crore, while reported profit after tax (PAT) rose 16% to Rs 202.1 crore. Operating revenue therefore grew faster than adjusted EBITDA and reported PAT in the FY25 comparison.

The FY24 comparison was different from the FY25 comparison. Adjusted EBITDA rose 79% from FY24, ahead of the 65% increase in operating revenue, whereas it rose 21% against FY25 compared with a 25% rise in revenue. Reported basic earnings per share (EPS) was Rs 9.59 in FY26, up 13% versus FY25 and 24% versus FY24.

Why did Latent View’s FY26 EBITDA margin decline?

Latent View’s adjusted EBITDA margin was 23.0% in FY26, down 0.7 percentage points from FY25 despite the 25% increase in operating revenue. Adjusted EBITDA grew 21% in the same year-on-year comparison, below the revenue growth rate. The presentation does not provide a quantified bridge for the full FY25-to-FY26 adjusted EBITDA margin movement.

The longer comparison shows a different result: FY26 adjusted EBITDA margin was 1.8 percentage points above FY24. This means the margin improved across the FY24-to-FY26 period but fell in its final year. The presentation therefore shows both multi-year margin expansion and a year-on-year decline in FY26.

Reported PAT margin followed a separate pattern. It was 17.8% in FY26, down 1.1 percentage points from FY25 and down 4.4 percentage points from FY24. Unlike adjusted EBITDA margin, reported PAT margin was below both comparison years, showing that the two profitability measures did not move in the same direction over the three-year period.

What did Latent View report for Q2 FY27?

Latent View reported Q2 FY27 revenue from operations of Rs 294.1 crore, up 14.2% year on year and 2.5% quarter on quarter. Adjusted EBITDA was Rs 60.8 crore, up 4.8% year on year and 3.7% quarter on quarter. The lower year-on-year growth rate for adjusted EBITDA than revenue coincided with a 20.7% adjusted EBITDA margin.

Q2 FY27 adjusted EBITDA margin of 20.7% was 1.9 percentage points below the prior-year quarter and 0.2 percentage points above Q1 FY27’s 20.4%. Latent View identified a 1.9-percentage-point impact from higher bench and wage hikes, a 1.2-percentage-point benefit from rationalisation of go-to-market costs, and a 1.1-percentage-point benefit from lower marketing costs.

Reported Q2 FY27 PAT was Rs 48.5 crore and reported PAT margin was 15.6%. PAT margin was 1.0 percentage point lower year on year but 0.3 percentage points higher quarter on quarter. Reported profit before tax margin was 21.0%, down 1.4 percentage points year on year and 0.2 percentage points quarter on quarter.

How does Latent View’s delivery footprint relate to current costs?

Latent View reported a workforce of 1,800 full-time-equivalent employees across North America, Asia-Pacific (APAC), the United Kingdom and European Union, and Latin America (LATAM). APAC accounted for 1,496 employees, compared with 248 in North America, 28 in LATAM and seven in the United Kingdom and European Union.

The Q2 FY27 margin bridge specifically identified higher bench and wage hikes as a 1.9-percentage-point impact, while the workforce data describes the delivery network operating across four regions. North America had 57 clients, compared with 15 in APAC, five in LATAM and four in the United Kingdom and European Union. The presentation does not quantify employee utilisation or link regional workforce levels to the FY26 margin change.

Conclusion

Latent View’s figures show sustained topline expansion alongside a less consistent profitability outcome. Revenue reached $123.9 million in LTM Q2 FY27, 1.85 times its FY23 level, and FY26 operating revenue rose 25% to Rs 1,060.2 crore. Yet FY26 adjusted EBITDA margin declined to 23.0% from FY25, while reported PAT margin fell to 17.8% and remained below FY24.

The next disclosed items to watch are the higher-bench and wage-hike effects, go-to-market cost rationalisation and marketing costs in the Q2 FY27 margin bridge. Latent View also presents an unresolved reporting difference: its three-year track record says FY26 reported PAT increased 16% versus FY25, while the Q2 FY27 financial summary displays a 16.5% decline alongside FY26 reported PAT; the presentation does not reconcile the two figures.