- Revenue rose 22% YoY, led by a 20.6% jump in Financial Services.
- Net profit surged 19% YoY to Rs 50.8 cr, pushing the stock up ~8%.
- Adjusted EBITDA margin hit 23%, with a clean‑core 24.6% after one‑offs.
- Institutional ownership rose: FPI to 3.72%, mutual funds to 3.66%.
- Technicals: stock above 7 of 8 SMAs, RSI at 44 (neutral).
You missed the fine print on Latent View’s latest earnings—and that could cost you.
Why Latent View’s Margin Expansion Beats Sector Norms
For Q3FY26 the company reported an adjusted EBITDA margin of 23.0%. After stripping one‑time costs the margin would have been 24.6%, a level that outstrips most Indian analytics peers, which typically hover around 18‑20%. This margin resilience stems from two levers: disciplined cost control and a pricing premium earned in its high‑margin Financial Services practice.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) is a proxy for operating cash generation. A rising margin signals that the business is converting a larger slice of revenue into cash, a key indicator for investors seeking sustainable earnings.
How the Financial Services Surge Fuels AI Consulting Demand
Revenue from operations climbed to Rs 278 cr, a 22% YoY increase. The Financial Services vertical alone contributed a 20.6% growth rate, dwarfing the 6.2% rise in the Technology practice. Banks and fintech firms are accelerating AI‑driven risk analytics, credit scoring, and regulatory compliance tools—areas where Latent View’s proprietary Agentic AI frameworks have a competitive edge.
With the Indian banking sector projected to digitise 70% of its processes by 2028, the spend pipeline for AI consulting could expand at a CAGR of 18%. Latent View is positioned to capture a sizable share, especially as it adds six new client logos and retains most existing contracts.
Valuation, Technicals, and Institutional Flow: What the Numbers Reveal
The stock trades at a forward P/E of 45.4 and a P/B of 5.6. While these multiples appear premium, they must be contextualised against the growth trajectory: 7.9% sequential revenue growth (5.7% in USD) and a track record of twelve straight quarters of top‑line expansion.
On the technical front, Latent View sits above seven of its eight key simple moving averages (SMAs), a classic bullish signal. The 14‑day Relative Strength Index (RSI) is 44.1, sitting in the neutral zone—suggesting room for upside before hitting overbought territory (RSI > 70).
Institutional appetite is warming. Foreign Portfolio Investors (FPI) lifted their stake from 2.17% to 3.72% in the last quarter, while mutual funds rose from 2.90% to 3.66%. Such inflows often precede price appreciation as large players accumulate shares.
Historical Parallel: AI‑Driven Advisory Firms’ Growth Trajectories
When Infosys launched its AI‑focused consulting arm in 2019, the segment posted a 15% YoY revenue rise and a 22% profit margin uplift over three years, ultimately pushing the parent’s share price up 30%. Similarly, global boutique analytics firms that doubled down on Agentic AI in 2021 enjoyed double‑digit stock rallies within 12‑18 months.
The pattern is clear: firms that embed AI at the core of their service offering tend to experience accelerated top‑line growth, margin expansion, and heightened investor interest. Latent View’s 2025 quarter mirrors that inflection point.
Investor Playbook: Bull vs. Bear Scenarios
- Bull Case: Continued AI adoption across banking and fintech drives a 20% YoY revenue CAGR for the next two years. Adjusted EBITDA margin stabilises above 24%, and P/E compresses to 35 as earnings scale, delivering a potential 40% upside from current levels.
- Bear Case: Slower macro‑economic growth curtails corporate IT spend, causing revenue growth to dip below 10% YoY. Margin pressure from the one‑time labor‑code expense persists, pushing the P/E above 55 and exposing the stock to a 15% downside.
Risk management hinges on monitoring two leading indicators: (1) quarterly client acquisition velocity in the Financial Services vertical, and (2) the pace of salary‑structure reforms slated for completion by March 2026, which should restore margin headroom.
In short, Latent View’s earnings beat is more than a headline; it’s a structural catalyst for a niche AI‑consulting play that could reward disciplined investors.