LTM aims to double revenue to $10 billion by FY31, bets big on AI-led deals

LTM Ltd aims to double its revenue to nearly $10 billion by FY31, a year ahead of its previous forecast, even as the rise of automation tools and the uncertain geopolitical environment continue to challenge the information technology (IT) services sector.

Announcing its FY26 annual report on Friday, India’s sixth largest IT services firm said it will rely on large deals and artificial intelligence (AI)-driven, high-value services to accelerate its plan to double its revenue. It also plans to “balance margin expansion with reinvestment in growth and talent.”

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The Mumbai-based company closed last year with revenues of $4.76 billion, up 6%. More than a third of that growth came from manufacturing and resource companies, which accounted for nearly a fifth of its revenue. Two years ago, LTM outlined a goal of reaching $10 billion in revenue by FY32.

LTM will have to grapple with increased automation and geopolitical uncertainty as it accelerates towards its revenue goals. Both could encourage major customers to cut technology spending, renegotiate contracts and disrupt workforce structure.

“Large and strategic deals involve complex requirements, tight deadlines and high customer expectations. Failure to meet project commitments or manage costs effectively can lead to financial penalties, loss of customer trust and permanent reputational damage,” LTM’s annual report states.

The company aims to mitigate this risk through “disciplined planning, strong financial monitoring and adherence to contractual commitments.”

For now, LTM has failed to meet parent L&T Group’s previous five-year target called Lakshya 2026. As part of this five-year plan, engineering group L&T’s IT businesses, including LTM and L&T Technology Services Ltd (LTTS), were expected to account for 27% of its total revenue by FY26.

However, it missed the target as the group’s IT businesses cumulatively account for almost one-fifth of L&T ₹2.86 trillion in revenue in the last fiscal year. LTTS closed last year with $1.32 billion in revenue, up 4.9%.

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Parent company Larsen & Toubro delivered a CAGR of 16% between 2021 and 2026, beating its previous target of 15% CAGR, despite underperformance in its IT business, according to a company presentation earlier this week.

As part of its new five-year plan, L&T is targeting 12-15% compound annual growth in revenues between FY26 and FY31. This means: ₹5.8 trillion on the high end as of FY31, which is twice the FY26 revenue.

LTM was born in November 2022 after L&T made a hostile bid to acquire Bengaluru-based Mindtree and later merged it with Larsen and Toubro Infotech.

With the new five-year plan, L&T is setting an ambitious target for LTM chief executive officer (CEO) Venu Lambu, who took over the top job in May last year.

The company won its largest deal four months after taking office as CEO. In October last year, the company won an IT transformation deal worth $585 million over six years from American entertainment company Paramount Global.

Lambu won last year ₹27.26 crore ($2.88 million) as salary. including this ₹12 crore each as fixed and variable charge. what remains ₹3 crore consisted of stock options. On the other hand, former CEO Debashis Chatterjee, ₹15.76 crore in FY26.

Meanwhile, cutting costs to maximize profitability can also be challenging, as this is the first time the company has identified cost cutting as another risk.

“Inadequate budget planning, rising resource costs and inflationary pressures can lead to significant cost overruns and operational inefficiencies,” according to the company’s FY26 annual report. LTM looks for ways to offset this risk by monitoring cost, price revisions and labor utilization.

The company also became India’s first mid-sized IT firm to provide AI auditing to its board of directors.

LTM’s board of directors, through its audit committee, will monitor whether the use of AI in the company complies with country-specific regulations and is up-to-date with industry best practices. The board’s risk management committee will also regularly evaluate threats and opportunities arising from the company’s use of artificial intelligence tools.

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“As per instructions received from the Audit Committee, Responsible AI has been covered as part of the internal audit plan for FY26. The internal audit is being conducted by independent auditors whose scope also includes the LTM AI Governance framework, benchmarking of best practices with leading peers, and assessing compliance with applicable AI regulations and standards,” the company said in its annual report.

The company’s management reiterated its artificial intelligence move.

“During the year, there has been sustained engagement on key strategic priorities, including becoming an AI-centric organization and simplifying the operating model. In this context, governance becomes even more critical – not just to ensure stability, but to enable a purposeful transformation. The Board’s emphasis has been to ensure that these changes are pursued with clarity of direction and alignment with the company’s long-term goals,” LTM chairman SN Subrahmanyan said in his letter to shareholders in the annual report.