April 29, 2026 - ChartAlert®

LTM (formerly LTIMindtree) – Q4 FY26 Earnings Call – 23-Apr-26

Findings imply sustained double-digit revenue growth potential (AI, diversification) with margin stability (15–16%) contingent on execution of Lakshya’31 and cost optimization, while BFSI recovery and macro resilience remain key swing factors.

1–2 minutes

Also see: LTM (formerly LTIMindtree) – Q4 FY26 Financial Results – 23-Apr-26

3-Scenario Framework

📊 Base Case (60% Probability)

AI adoption accelerates in FY2027 as BlueVerse™ scales and large deals ramp up, offsetting BFSI top client’s gradual recovery. Revenue grows 7–9% YoY (broad-based across verticals/geographies), EBIT margins stabilize at 15–16% (wage hikes offset by productivity). Cash flow remains strong (FCF/PAT >75%).

PERSISTENT – Persistent Systems – Q4 FY26 Earnings Call – 21-Apr-26

Topline resilience hinges on AI scaling in BFSI/Healthcare and tech spend stability; margins depend on operational efficiencies offsetting cost pressures, while cash flow normalization is likely but contingent on unbilled revenue conversion.

1–2 minutes

Also see: PERSISTENT – Persistent Systems – Q4 FY26 Financial Results – 21-Apr-26

3-Scenario Framework

📊 Base Case (60% Probability)

AI adoption scales in BFSI/Healthcare (20%+ YoY growth), tech spend stabilizes, and macro headwinds (oil, Europe) moderate. Revenue grows 15–17% YoY in FY27, EBIT margins expand to 16% via AI efficiency. OCF/PAT normalizes to 90%+ as unbilled revenue clears.

GRSE – Garden Reach Shipbuilders – Q4 FY26 Financial Results – 28-Apr-26

GRSE’s FY26 saw 38% revenue and 42% PAT growth on a debt‑free base, but negative OCF, a 371% receivables spike, FD‑funded dividends, and subcontracting surge expose execution and cash‑flow risks. FY27 hinges on government payment cycle normalization and receivables collection.

1–2 minutes

🔍 Observations

Topline

Revenue from operations surged 38% YoY (₹5,07,569 → ₹7,00,216 lakh), marking the sharpest annual jump in recent history — driven by accelerated project execution and B&D spares ramp-up.
Q4FY26 revenue of ₹2,11,921 lakh grew 29% YoY over Q4FY25 (₹1,64,204 lakh), confirming Q4 as the strongest delivery quarter — a structural pattern in defence shipbuilding.
Sub-contracting charges jumped 145% YoY (₹48,357 → ₹1,18,252 lakh), signalling heavy outsourcing to meet scale — execution velocity is being bought, not organically built.

Bottomline

PAT grew 42% YoY (₹52,740 → ₹74,793 lakh); EPS expanded from ₹46.04 to ₹65.29 — value accrual to shareholders is real and material.
Q4FY26 PAT of ₹30,320 lakh grew 24% YoY over Q4FY25 (₹24,425 lakh), with strong sequential recovery from Q3FY26 (₹17,077 lakh) — quarter-end billing cycles driving lumpy earnings.
Other income fell 18% YoY (₹33,484 → ₹27,439 lakh), reducing the earnings quality cushion; core operating profit is now doing heavier lifting.

Margins

Net profit margin improved marginally: 10.39% → 10.68% on revenue from operations basis — expansion is real but thin, compressed by the sub-contracting surge.
EBITDA proxy (PBT + D&A + Finance Costs): FY26 = ₹1,00,470 + ₹4,887 + ₹1,612 = ₹1,06,969 lakh vs FY25 = ₹70,329 + ₹4,249 + ₹1,032 = ₹75,610 lakh — EBITDA margin on revenue ~15.3% vs ~14.9%, modest improvement.
Material + sub-contracting as % of revenue: FY26 = (₹3,42,172 + ₹1,18,252) / ₹7,00,216 = 65.7% vs FY25 = (₹3,32,470 + ₹48,357) / ₹5,07,569 = 75.2% — a significant input cost efficiency gain despite the outsourcing surge.

Growth Trajectory

Revenue CAGR implied over one year: 38% — exceptional for a PSU shipbuilder; order book execution is accelerating.
PAT growth of 42% YoY outpacing revenue growth of 38% — operating leverage is beginning to show, though partly offset by sub-contracting costs.
Inventory turnover improved: 1.25x → 1.80x — WIP is converting faster, a direct outcome of increased throughput.