LTM is the current corporate name of the company formerly known as LTIMindtree Limited.

Historical databases, URLs and some market platforms continue to use LTIM or LTIMindtree, so those names may still appear when referring to older records.

For Bull Run's underlying research, see Infosys, LTM / legacy LTIMindtree stock page, How to Analyse IT Services Stocks, Infosys vs Tech Mahindra and LTM vs Persistent Systems.

Q1 FY27 operating comparison

LTM wins the growth-rate comparison

LTM's Q1 revenue grew approximately 6.4% year on year in constant currency.

Infosys grew 2.4%.

The difference is meaningful.

LTM is working from a much smaller denominator, which gives it greater room to win new accounts and expand existing relationships without requiring billions of dollars of incremental annual revenue.

Infosys already generates more than $20 billion of annual revenue.

LTM is closer to a $5-billion annualised run-rate.

A $100-million new programme therefore moves LTM's percentage growth far more than it moves Infosys.

But Q1 sequential growth complicates the simple narrative

Infosys grew 1.0% sequentially in constant currency.

LTM grew approximately 0.3%.

That means LTM's higher YoY growth does not automatically imply that every quarter is accelerating faster.

IT-services growth can be affected by:

• contract ramp timing,
• project completions,
• client budgets,
• working days,
• currency,
• large-deal transitions.

A useful comparison therefore needs both annual and sequential growth.

Infosys's revenue scale changes what “slow growth” means

Percentage growth and absolute revenue creation answer different questions.

LTM wins on growth rate.

Infosys remains far larger in absolute new-business capacity.

The margin gap is still more important than the growth gap

Infosys reported a 21.1% operating margin.

LTM reported a 15.5% EBIT margin.

The accounting labels are not perfectly identical, so the comparison should not be interpreted down to the last basis point.

But an approximately 560-bps gap is far too large to dismiss as presentation noise.

Infosys currently earns materially more operating profit from each revenue dollar.

Why Infosys can sustain a 20%+ margin

Its economics benefit from:

• global offshore scale,
• a large installed enterprise client base,
• strong account mining,
• large utilisation pools,
• automation,
• shared infrastructure,
• pricing discipline,
• platform and IP-led delivery.

Management retained FY27 operating-margin guidance of 20% to 22%.

This makes the current 21.1% result consistent with its intended operating model rather than a one-quarter peak.

LTM's lower margin creates more earnings upside

LTM's margin increased approximately:

• 40 basis points sequentially, and
• 120 basis points year on year.

A company at 15.5% has far more theoretical margin upside than one already above 21%.

If LTM eventually moves toward 17–18% while sustaining faster revenue growth, earnings can grow much faster than revenue.

That is one of the main arguments behind its valuation premium.

The key question is how much margin expansion is operationally available

LTM already reported utilisation excluding trainees around the mid-80s in Q1.

That means it cannot rely forever on simply putting more idle employees on projects.

Future margin improvement increasingly needs:

• AI productivity,
• better project mix,
• outcome-based pricing,
• higher offshore leverage,
• employee pyramid optimisation,
• stronger pricing on specialised work.

The AI comparison is unusually measurable

Infosys's approximately $417-million figure above is an analytical calculation.

The company itself reported the 8.2% share, not the calculated dollar amount.

LTM directly disclosed approximately $150 million of quarterly pure-AI revenue.

It also explained that this number does not include all enterprise AI activity where AI is embedded inside a broader technology transformation.

Infosys currently has much larger absolute measurable AI dollars

Applying Infosys's reported 8.2% share to $5.082 billion of quarterly revenue gives approximately $417 million.

LTM reported approximately $150 million.

On those disclosed frameworks, Infosys has a much larger current absolute AI-revenue pool.

That is consistent with its overall scale.

LTM has the more concentrated pure-AI growth narrative

LTM's management specifically frames AI around:

• Creative AI,
• Business AI,
• Industrial AI,
• Enterprise AI.

Its $150-million pure-AI number covers the first three categories rather than every project with an AI component.

This makes the disclosure useful because it avoids claiming that every cloud or digital engagement containing an AI feature is entirely AI revenue.

Outcome-based pricing matters more as AI productivity increases

LTM has discussed transitioning major clients toward more outcome-oriented pricing.

This matters because traditional IT pricing often rewards labour hours.

If generative AI allows ten engineers to perform work previously requiring fifteen engineers, a pure time-and-materials model can shrink revenue.

An outcome model instead attempts to charge for:

• business savings,
• faster product launches,
• lower downtime,
• higher automation,
• improved customer outcomes.

That helps the provider retain some of the productivity benefit.

Infosys has the stronger large-deal number

Infosys reported $3.6 billion of large-deal TCV.

Approximately 61% was net new.

A simple calculation implies roughly $2.2 billion of net-new TCV.

That dollar figure is analytical rather than separately disclosed.

LTM reported approximately $1.68 billion of order inflow.

Its order inflow increased around 3% year on year.

Large-deal TCV and order inflow are not identical definitions

Infosys specifically labels its headline number large-deal TCV.

LTM uses order inflow.

Different vendors can vary in how they count:

• renewals,
• new work,
• extensions,
• variable pricing,
• framework contracts.

Therefore saying Infosys booked exactly 2.14 times more “new business” would be false precision.

The safe conclusion is that Infosys has the larger absolute disclosed deal engine.

61% net new improves the quality of Infosys's deal book

A renewal is valuable because it protects existing revenue.

A net-new programme creates incremental revenue opportunity.

With 61% of Infosys's $3.6-billion large-deal TCV classified as net new, the Q1 booking profile contains meaningful growth potential rather than only defence of existing contracts.

Order books convert slowly

Infosys has the clearest cash-generation advantage

Q1 free cash flow was approximately $955 million.

In rupee terms, FCF was about ₹9,051 crore.

FCF conversion reached approximately 116.5% of net profit under the company's USD release.

This is excellent cash conversion.

It shows the business is not relying on receivables growth or aggressive accounting to produce reported profit.

Why cash flow matters more than headline PAT growth

IT services is asset-light.

Investors should expect a high portion of profit to convert into cash.

If profit rises but free cash flow consistently lags, investors need to investigate:

• receivables,
• unbilled revenue,
• large advance payments,
• acquisition accounting,
• working-capital changes.

Infosys's Q1 cash conversion passes this test comfortably.

Infosys's FY27 guidance remains deliberately modest

Infosys revised its FY27 constant-currency growth guidance to:

1.5% to 3.0%.

Operating-margin guidance remained:

20% to 22%.

The revenue outlook makes clear that $3.6 billion of large-deal TCV will not convert instantly.

Large enterprise contracts commonly take quarters to ramp.

LTM does not need Infosys's scale to create better percentage earnings growth

LTM reported Q1 PAT of approximately ₹1,469 crore, up about 17% year on year.

Revenue increased around 18% in rupees.

If margin continues expanding, profit can eventually grow faster than sales.

This is the central LTM thesis.

Valuation creates a high hurdle for LTM

LTM's P/E was approximately 77% higher than Infosys's.

Its P/B was only modestly higher.

The reason is that Infosys currently generates stronger returns on shareholder capital.

Bull Run's latest usable Infosys ROE was approximately 31.2%.

Current external LTM data places ROE around 23%.

The premium means LTM must outperform for years, not one quarter

A 25–26x P/E can be justified if LTM:

• sustains materially faster revenue growth,
• raises EBIT margin toward the high teens,
• continues growing AI revenue,
• deepens large clients,
• protects return on capital.

If growth converges toward Infosys without margin convergence, the premium becomes much harder to justify.

Infosys's lower valuation does not automatically make it cheap

A low multiple can reflect legitimate concerns.

The market currently worries about:

• weak discretionary technology spending,
• slow North American enterprise budgets,
• AI reducing traditional labour intensity,
• low-single-digit FY27 guidance.

Infosys therefore needs to show that AI-led revenue can offset pressure on traditional services.

The market-data issue inside Bull Run should not become an investment conclusion

Bull Run's current raw Infosys row contains an ADR-like dollar value in the `current_price` field even though the Indian stock trades above ₹1,100.

The same row's 52-week low is also contaminated by the dollar feed.

Those raw price fields are deliberately excluded.

The public Indian stock page and fresh August 31 INR market data are used instead.

LTM has the opposite problem.

Its new LTM financial row is current through June 2026, but some technical price fields are broken after the symbol/name migration.

Fresh August 31 LTM price and valuation data therefore replace those fields.

Which has better growth?

LTM on YoY constant-currency growth.

6.4% versus Infosys at 2.4%.

Infosys nevertheless had better Q1 sequential CC growth at 1.0% versus LTM around 0.3%.

Which has better margins?

Infosys.

21.1% operating margin versus LTM at 15.5% EBIT margin.

Which has better margin upside?

LTM.

It starts from a lower base and improved 120 basis points year on year.

Which has more measurable AI revenue?

Infosys in absolute dollars under the disclosed frameworks.

Applying 8.2% to $5.082 billion gives roughly $417 million of quarterly AI-attributed revenue analytically.

LTM disclosed approximately $150 million of quarterly pure-AI revenue.

Definitions differ, so the ratio should not be interpreted as a measure of technological superiority.

Which has better current cash evidence?

Infosys.

$955 million of Q1 free cash flow and more than 116% FCF conversion provide a very strong earnings-quality signal.

Which is cheaper?

Infosys by a wide margin.

Approximately 14.6x TTM earnings versus LTM around 25.9x at August 31.

Infosys vs LTM: category-by-category

Which is stronger in 2026?

Infosys currently has the stronger risk-adjusted setup.

It offers:

• 21.1% operating margin,
• 31%+ ROE,
• $3.6 billion of large deals,
• AI at 8.2% of revenue,
• $955 million of quarterly FCF,
• a roughly 15x current P/E.

LTM is the stronger growth-and-convergence story.

It offers:

• 6.4% YoY CC growth,
• 120-bps YoY margin improvement,
• $150 million of pure-AI quarterly revenue,
• a strong $1.68-billion order inflow,
• more room for margin expansion.

The valuation is the deciding variable.

LTM already trades at a large earnings premium.

Infosys currently requires fewer optimistic assumptions.

The comparison can therefore be summarised as:

Infosys = slower growth, stronger current economics and cheaper valuation.

LTM = faster growth and more margin upside, but at a significantly higher earnings multiple.

What to monitor next

• Infosys AI revenue share: 8.2% should rise if the AI-first strategy is working.
• Infosys FY27 CC growth: watch performance against 1.5–3.0% guidance.
• Infosys large-deal net-new percentage: net-new contracts are more useful for future growth than renewals alone.
• Infosys FCF conversion: sustained 100%+ conversion strengthens earnings quality.
• LTM CC growth: must remain materially above larger peers.
• LTM EBIT margin: the key earnings-convergence variable.
• LTM pure-AI revenue: watch whether the $150-million quarterly run-rate scales rapidly.
• LTM financial-services vertical: Q1 weakness should reverse if growth is to broaden.
• LTM order inflow: new contracts need to convert into revenue without margin dilution.

Frequently asked questions