LTTS expects AI deals to drive revenue growth in second half

Artificial intelligence deals formed a significant portion of LTTS's growth trajectory, representing 50% of the company's $203 million in large deal wins during the second quarter of fiscal 2027, according to CFO Rajeev Gupta. The strong performance in AI-related contracts underscores the IT services sector's pivot toward generative AI and automation-driven solutions as enterprises accelerate digital transformation initiatives.

Beyond AI, LTTS is leveraging strength in sustainability and mobility verticals to support its business outlook for the remainder of the fiscal year. These segments are expected to contribute meaningfully to the company's performance in the second half, providing diversified revenue streams beyond the AI segment.

Gupta dismissed concerns about potential revenue headwinds from US visa policy changes, particularly the PERM permanent residency program. The CFO indicated that LTTS does not foresee material risk from regulatory shifts in the United States immigration landscape, suggesting the company has contingency strategies in place.

The commentary reflects cautious optimism across India's IT services industry, where large firms are increasingly dependent on AI-driven deals to offset traditional consulting headwinds. As clients prioritize technology modernization, IT service providers like LTTS are positioning themselves to capture opportunities in emerging technology domains.