Latent View, an analytics services company and midcap IT player, is riding on strong momentum in its financial services business that has grown 21.3% QoQ and 48.4% YoY during the June quarter, resulting in a sharp uptick in share prices on July 22, higher by over 6 percent.
The company posted a 30 percent on year growth in net profit at Rs 50.8 crore, while the revenue from operations was higher by 32 percent on year at Rs 236 crore. This was the tenth quarter of revenue growth for the company.
The management has now guided to double the traction in its Gen AI business. "We are witnessing increased traction in our GenAI practice and anticipate that it will double, contributing 12-14% of our overall revenue by the end of FY26," Rajan Sethuraman, Chief Executive Officer, Latent View said.
The company has now focused on embedding 'all facets' of AI into business processes, and lining up investment in talent upskilling for advanced analytics, in an effort to drive stable growth. Latent View also said it is confident of momentum in technology vertical return going forward after a flat June quarter, as some of the one-off projects that had culminated during June quarter are showing promise of a future pipeline.
"We are happy to start the fiscal year with strong momentum, reporting revenue of Rs 236 crore and EBITDA margin of 21.4%. The reported margin for the quarter factors in the full impact of wage hikes across the group. It has been a year since we acquired Decision Point, and we continue to make strong progress on integration, particularly on the GTM initiatives, while realizing revenue and cost synergies," Chief Financial Officer Rajan Venkatesan said.
Among its key client wins in Q1FY26, Latent View said it is collaborating with an American Heating, ventilation, and air conditioning (HVAC) MNC, to develop a 'demand forecasting model' that will unify its global supply chain and integrate it with a GenAI chatbot for real-time insights. The US market contributes nearly 90 percent to the revenue, and the company has been trying to widen the base.
The consulting firm has seen a growth of 1.93x since FY22 on strong demand from top customers, with over three-fourth of its revenue coming from clients that have been with the company for more than five years.
For FY25, Latent View surpassed its initial growth guidance of 18-19% to deliver a 22% organic growth for the year, with annual revenue crossing $100 million within three years of listing.
Shares of Latent View, a Rs 9,600 crore company, are down 6 percent on YTD basis, but over the last one month, it has risen by 12 percent.
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