LTM Ltd aims to double its revenue to nearly $10 billion by FY31, a year ahead of its earlier guidance, even as the rise of automation tools and an uncertain geopolitical environment continue to challenge the information technology (IT) services industry.
India’s sixth-largest IT services firm, which released its FY26 annual report on Friday, said it will and artificial intelligence (AI)-driven, high-value services to fast-track its plan to double revenue. It also plans to “balance margin expansion with reinvestment in growth and capabilities.”
The Mumbai-based company ended last year with $4.76 billion in revenue, up 6%. More than a third of this growth came from manufacturing and resources companies, which make up about a fifth of its revenue. Two years ago, LTM had outlined a goal to touch $10 billion revenue by FY32.
LTM will have to grapple with the rise of automation and geopolitical uncertainty as it races towards its revenue ambitions. Both could prompt large clients to curb technology spending, renegotiate contracts, and disrupt its workforce structure.
“Large and strategic deals involve complex requirements, tight deadlines, and high customer expectations. Failure to meet project commitments or manage costs effectively could result in financial penalties, loss of client trust, and permanent reputational damage,” read LTM’s annual report.
The company aims to mitigate this risk through “disciplined planning, strong financial monitoring, and adherence to contractual commitments.”
For now, LTM missed parent L&T Group’s previous five-year target dubbed Lakshya 2026. As part of this five-year plan, engineering conglomerate 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, the group’s IT businesses missed the target as they cumulatively made up nearly a fifth of L&T’s ₹2.86 trillion revenue last fiscal. LTTS ended last year with $1.32 billion in revenue, up 4.9%.
Despite the , parent Larsen & Toubro exceeded its earlier target of a 15% compounded growth, delivering a 16% compound annual growth rate between 2021 and 2026, according to a company presentation earlier this week.
As part of its new five-year plan, L&T is aiming for a 12-15% compounded annual growth in its revenues between FY26 and FY31. This translates to a revenue of ₹5.8 trillion by FY31 at the upper end, which is double of its FY26 revenue.
LTM was born in November 2022 after L&T made 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 goal for LTM chief executive officer (CEO) Venu Lambu, who assumed the top job in May last year.
The company won its largest deal four months after he took over as CEO. In October last year, the company won an IT transformation deal valued at $585 million over six years, from American entertainment company Paramount Global.
Last year, Lambu earned ₹27.26 crore ($2.88 million) as salary. This included ₹12 crore each as fixed and variable pay. The remaining ₹3 crore was made up of stock options. On the other hand, former chief executive Debashis Chatterjee earned ₹15.76 crore in FY26.
Meanwhile, reducing costs to maximize profitability may also pose a challenge as the company has outlined cost reduction as another risk for the first time.
“Inadequate budget planning, rising resource costs, and inflationary pressures may lead to significant cost overruns and operational inefficiencies,” according to the company’s annual report for FY26. LTM is looking to offset this risk by monitoring cost, rate revisions, and workforce utilization.
The company has also become India’s first mid-sized IT firm to give AI oversight to its board of directors.
LTM’s board of directors, through its audit committee, will track whether AI usage in the company is following country-specific regulations and is up-to-date with best industry practices. The board’s risk management committee will also regularly assess threats and opportunities arising from the company’s usage of AI tools.
“Based on the directions received from Audit Committee, Responsible AI was covered as part of internal audit plan for FY26. The internal audit is conducted by independent auditors whose scope also includes LTM AI Governance framework, benchmarking best practices with leading peers and assessment of adherence to applicable AI regulations and standards,” read the company’s annual report.
The company’s management reiterated its AI push.
“During the year, there has been sustained engagement on key strategic priorities, including the pivot toward becoming an AI-centric organization and the simplification of the operating model. In this context, governance becomes even more critical—not only to ensure stability, but to enable purposeful transformation. The Board’s emphasis has been on ensuring that these shifts are pursued with clarity of direction and alignment with the Company’s long-term objectives,” said S.N. Subrahmanyan, chairman of LTM, in his letter to shareholders in the annual report.