📉 The Financial Deep Dive
Latent View Analytics (LatentView) has once again demonstrated resilience, reporting its 12th consecutive quarter of sequential revenue growth in Q3 FY26. Revenue climbed by 5.7% QoQ in USD and 8% QoQ in INR, underscoring sustained demand for its data analytics services.
The Numbers:
- Revenue: Continued its growth trajectory, marking the 12th sequential increase. Q3 FY26 saw growth of 5.7% (USD) and 8% (INR) QoQ.
- EBITDA Margin: Reported EBITDA stood at 22.4%. Adjusted EBITDA was 23%, and excluding transaction-related costs, it was approximately 24.6%. For the full fiscal year FY26, EBITDA is projected to be around 24%.
- PAT & EPS: Showed robust growth exceeding revenue, partly aided by a favorable tax advantage from a US ESOP exercise.
- One-off Impacts: Significant costs included INR 4.6 crores (~1.6% of EBITDA) for restructuring related to the new Labor Code and approximately USD 200,000 for employee rationalization, impacting payroll and benefits.
The Quality & Grill:
While revenue growth remains a strong point, management commentary highlighted key strategic considerations and risks. The company reaffirmed its FY26 revenue guidance of $119 million to $120 million and projected an ambitious $200 million revenue target by FY28, requiring a 30% CAGR. This forward-looking guidance is positive, but potential headwinds are acknowledged. Investments in senior leadership, AI/ML capabilities, R&D, and potential M&A are expected to lead to a temporary 1-2% drop in EBITDA margins in FY27, though the company aims to maintain steady-state margins around 24-25% in the long term.
Key segments like BFSI continue their exponential growth, while the Technology vertical has returned to growth. However, the CPG and Retail segment remained flat QoQ, with management anticipating a revival in Q4. A significant risk flagged is a client-specific issue in the Technology vertical, potentially causing an annualized revenue impact of $5 million to $6 million due to a client's preference for internal resources over contractors, expected to persist until March 31, 2026. Management is actively seeking to mitigate this impact within the account.