Synopsis: Latent View Analytics is focusing on AI-led growth and Databricks expansion while managing pressure in its technology business, aiming to maintain healthy growth through stronger client demand, partnerships, and diversified industry exposure.
The shares of this small cap company majorly engaged in providing analytics services such as data and analytics consulting, business analytics & insights, advanced predictive analytics, data engineering and many more were in focus after the brokerage sees 45 per cent upside potential
With the market capitalization of Rs. 6748 Crores, the shares of Latent View Analytics Ltd were trading at around Rs. 326 per share which is 37 percent discount from its 52 weeks high of Rs. 518 per share and is trading at a P/E of 34 where as industry P/E stands at 20.4
Brokerage View:
Brokerage firm PL Capital has maintained a BUY rating on Latent View Analytics with a target price of ₹450 against the current market price of around ₹326, implying nearly 38% upside potential. The brokerage remains positive on the company’s AI-led growth strategy, Databricks expansion, strong BFSI momentum, and improving long-term revenue visibility despite short-term pressure in the technology segment and margins.
AI and Databricks Becoming the Core Growth Drivers
Latent View Analytics is increasingly positioning itself as an AI-focused analytics company rather than a traditional data services player. The company highlighted that nearly 49% of FY26 revenue came from Advanced AI services, showing how quickly AI adoption is becoming central to its business. Management also said that around 28% of revenue involved customer-facing AI implementations including Generative AI and agentic AI, while another 21% had AI embedded into workflows and decision-making systems.
The company’s Databricks partnership also continued to gain traction. Revenue from Databricks-related engagements increased from nearly US$12 million in FY25 to around US$17.5 million in FY26. Management expects this business to continue growing at nearly 60% going forward, supported by increasing enterprise demand for AI-led data transformation projects and stronger engagement with Databricks’ professional services ecosystem.
Strong Revenue Outlook Despite Technology Segment Weakness
Management maintained its aspiration of delivering 19–20% USD revenue growth in FY27. The company already has 12–13% revenue visibility from its existing order book and qualified pipeline, while expecting additional growth from new deal wins during the year.
However, the technology vertical remained under pressure during the quarter. The segment declined by 9.5% sequentially due to vendor consolidation, project rationalisation, and insourcing by large clients. Management also indicated that these headwinds could lead to an annualised revenue impact of nearly US$6.5–7 million in FY27. Even with these challenges, the company expects to recover nearly 50–60% of this revenue leakage through AI-led deal wins and improving spending trends in the technology sector.
On the other hand, non-technology segments continued to perform strongly. BFSI remained a key growth engine and management expects it to grow around 40% in FY27. Consumer and retail segments also delivered strong momentum, helping diversify the company’s revenue mix.
Margins Under Pressure Due to Investments
The company reported a Q4FY26 EBITDA margin of 24.1%, which came below expectations mainly because of continued investments in AI capabilities, Databricks partnerships, leadership hiring, and higher travel expenses. Management guided FY27 EBITDA margin at 21–22% as the company continues investing aggressively in future growth initiatives.
Even though near-term profitability may remain under pressure, management highlighted that AI-led projects are generating structurally higher gross margins of 55–58%, compared to the company-wide gross margin of 50.8%. This indicates that profitability could improve meaningfully once the current investment phase stabilises.
Client Metrics and Operational Trends Remain Healthy
The company’s operational indicators remained stable despite weakness in some large accounts. Utilisation improved sharply to 89% in Q4FY26 from 85% in the previous quarter, showing efficient workforce deployment. Net employee addition stood at 17 during the quarter, taking total headcount to 1,744 employees.
The company also continued expanding its client base. Clients contributing more than ₹500 million increased from 4 to 5 during the quarter. At the same time, dependency on top clients reduced gradually, with contribution from top 5 clients declining to 56% from 61% in the previous quarter.
Conclusion:
Latent View Analytics is continuing to invest in AI capabilities, partnerships, and leadership despite short-term margin pressure and weakness in parts of the technology business. Management also indicated that enterprises are maintaining or increasing AI spending because AI-driven productivity allows them to execute more work within the same budgets.
The company is additionally evaluating acquisition opportunities, especially businesses with stronger Databricks capabilities, to strengthen its position further in enterprise AI services. With strong cash reserves, improving AI contribution, and diversified growth drivers across BFSI, retail, and industrial segments, the company appears focused on building a larger long-term AI-led analytics business.
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