AI-led demand drives healthy growth momentum…
About the stock: Latent View Analytics (Latent View) is a leading pure-play data analytics services company in India. It provides expertise on the entire value chain of data analytics. Q4FY26 & FY26 Performance: Revenue at ₹288.6 crore, up 3.8% QoQ & 24% YoY. Reported EBITDA margin came at 23.4%, up ~105 bps QoQ. Reported PAT stood at ₹55.1 crore, up 8.5% QoQ/ 7.4% YoY. For FY26, revenue at ₹1,060 crore, up 25% YoY. EBITDA margin at 22.3%, flat YoY. PAT stood at ₹202 crore, up 16.5% YoY.
Investment Rationale
• AI-led growth drivers & Databricks partnership support strong medium-term visibility: Latent View continues to witness healthy traction across AI, data engineering and analytics transformation programs, with ~28% of FY26 revenue linked to client-visible AI projects and another 21% supported by AI- enabled workflows. The Databricks partnership scaled strongly with revenues rising to ~US$17.5 mn in FY26 from ~US$12 mn in FY25, while management expects >60% growth ahead driven by deeper enterprise engagement, industry- led solutions and stronger positioning within Databricks’ ecosystem. Notably, management indicated 12–13% high-visibility growth at the start of FY27 based on existing bookings and a high-probability deal pipeline, with investments targeting 18–20% growth for FY27. Accordingly, we have baked in revenue CAGR of 20.1% over FY26-28E.
• Investments in AI & leadership hiring to strengthen competitive positioning: Latent View is accelerating investments across AI CoE, senior leadership hiring (for AI CoE & Databricks practice including a potential CTO), forward-deployed engineering talent & agentic AI capabilities to position itself for next phase of enterprise AI adoption. Also, investment in Healtheon AI (USD 3mn) to build healthcare-focused agentic AI solutions, shall expand long-term optionality in verticalized AI platforms. Management expects these investments and higher GTM spends to keep FY27 EBITDA margins range-bound at 21-22%, though improving offshore mix, higher-margin AI projects and increasing outcome- based engagements shall support gradual margin expansion over the medium term. We have baked in EBITDA margin of 22%/22.4% in FY27E/FY28E.
• BFSI and CPG momentum offsets Technology headwinds: BFSI (+4% QoQ) & CPG & Retail (+34% QoQ) were key growth drivers. Management highlighted healthy pipeline conversion & new client additions in BFSI, while Decision Point integration & Databricks-led opportunities continue to support CPG growth. Although technology remains impacted (-6% QoQ) by consolidation & insourcing in one large client, (shrinkage of US$6.5-7 mn vs estimated US$5.5- 6 mn; expected to recover ~50-60% of lost revenues during FY27), budget cut & planned shift from onshore-to-nearshore delivery in one large client; & clients focusing on reducing costs due to consolidation and AI-led productivity gains.
Rating and Target Price
• We maintain BUY rating, with target price of ₹410 at 30x P/E on FY28E EPS.
