News Earnings LatentView Analytics Reports Strong Q3 FY26 Performance with 12th Consecutive Quarter of Sequential GrowthLatentView Analytics Reports Strong Q3 FY26 Performance with 12th Consecutive Quarter of Sequential Growth
LatentView Analytics delivered strong Q3 FY26 results with 5.7% sequential dollar revenue growth, marking 12 consecutive quarters of growth. The BFSI vertical showed exceptional performance with revenue share increasing 4% year-to-date, while Databricks partnerships contributed $16-17 million annually with four joint wins and 30+ pipeline leads. The company maintained full-year revenue guidance of $119-120 million (19-20% growth) and expects Q4 EBITDA margins of 24.5-25%, supported by operational efficiencies and strategic investments in AI capabilities.
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LatentView Analytics Limited delivered strong Q3 FY26 financial results, marking its 12th consecutive quarter of sequential growth. The analytics company reported 5.7% sequential dollar revenue growth and approximately 8% rupee revenue growth during the quarter ended December 31, 2025.
Financial Performance Highlights
The company's Q3 FY26 performance demonstrated robust momentum across key metrics:
| Metric | Q3 FY26 Performance |
|---|---|
| Sequential Dollar Revenue Growth | 5.7% |
| Sequential Rupee Revenue Growth | ~8% |
| Reported EBITDA Margin | 22.4% |
| Adjusted EBITDA Margin | 23% |
| Adjusted EBITDA (excluding labor code impact) | 24.6% |
CFO Rajan Venkatesan highlighted that Q3 traditionally represents a strong quarter due to customers exhausting annual budgets and executing contracts that need delivery by December 31st. The company maintained its full-year revenue guidance of $119-120 million, representing 19-20% annual growth.
Vertical Performance and Growth Drivers
The BFSI (Banking, Financial Services, and Insurance) vertical emerged as a standout performer, with its revenue share increasing by approximately 4% since the beginning of the fiscal year. This growth was primarily driven by accounts added around 12 months ago, where the company successfully penetrated multiple stakeholders and added new statements of work.
The technology vertical, which represents the company's largest practice, returned to a growth trajectory after experiencing sluggishness in earlier quarters. This improvement was attributed to year-end projects at large accounts and successful price increases secured with the second-largest client.
| Vertical | Performance Highlights |
|---|---|
| BFSI | Revenue share increased by 4% YTD |
| Technology | Returned to growth path with price increases |
| CPG & Retail | Flat performance due to project timing delays |
Databricks Partnership Momentum
The company's strategic partnership with Databricks continued to gain traction, with CEO Rajan Sethuraman reporting four joint wins during the quarter and over 30 leads in the pipeline. The partnership is expected to contribute $16-17 million in revenue for the current fiscal year, with joint go-to-market activities accounting for approximately $1.7 million or 10% of total Databricks-related revenue.
Management expressed confidence in achieving the $50 million Databricks revenue target over the next three years, supported by:
- Increased certified personnel from 300 to 600-800 professionals
- Enhanced on-site domain expertise for go-to-market and architecture solutions
- Potential acquisition opportunities, particularly in SAP-related capabilities
- Focused vertical solutions in retail, consumer goods, and manufacturing
Operational Adjustments and Cost Management
The company implemented several operational changes during Q3 FY26, including compliance with new Labor Code regulations. The restructuring impact totaled INR 4.6 crores (approximately 1.6% of EBITDA), which management noted was significantly lower than industry peers due to proactive salary restructuring undertaken in April 2025.
Additionally, LatentView conducted organizational rationalization, reducing headcount by approximately 40 positions across various functions. This one-time restructuring cost approximately $200,000 but is expected to improve operational efficiency going forward.
Strategic Investments and AI Initiatives
The company continued investing in key growth areas, including the appointment of Venky Ramesh as Chief Client Officer for the consumer retail and marketplaces practice. LatentView also expanded its AI Center of Excellence, focusing on three core areas:
- Conversational Analytics: Building on existing solutions like AI Penpal, LASER, and BeagleGPT
- Business Process Automation: Implementing agentic approaches to traditional IT services
- Governance and Observability: Developing evaluation frameworks for AI implementations
Forward Outlook
Management expressed optimism about the company's trajectory toward its $200 million revenue target by FY28. The diamond account strategy, focusing on 25+ key clients, remains central to growth plans. Leadership identified significant expansion potential within existing accounts, with top six accounts showing potential for over $150 million in addressable work compared to current $10 million engagement levels.
For Q4 FY26, the company expects EBITDA margins to reach 24.5-25%, driven by the absence of one-time costs and reduced visa-related expenses. The full-year EBITDA margin guidance remains at approximately 24%, consistent with previous projections.
Historical Stock Returns for Latent View Analytics
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.96% | +3.87% | -8.04% | +4.46% | -8.29% | -13.48% |
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