ICICI Securities on Latent View Analytics: ICICI Securities has upgraded Latent View Analytics to ‘Buy’ from ‘Add’, revising its target price to ₹560 from ₹480, citing a robust growth outlook and strong execution across key business segments. The brokerage maintains its FY28E P/E multiple of 38x on an estimated EPS of ₹14.9, following a two-quarter roll-forward.
“We upgrade Latent View Analytics to ‘Buy’ (from ‘Add’) with a revised TP of ₹560 (vs. ₹480) on an unchanged P/E of 38x FY28E EPS of ₹14.9 (roll-forward by two quarters),” said Aditi Patil and Ruchi Mukhija of ICICI Securities, in a note dated January 05, 2026.
The upgrade reflects ICICI Securities’ expectation of healthy revenue growth for Latent View, with 6 per cent quarter-on-quarter (Q-o-Q) growth in USD terms anticipated in the seasonally strong Q3. Ebitda margins are projected to expand by 50 basis points Q-o-Q, underpinned by revenue leverage, INR depreciation, and near-shoring benefits. These factors position the company well to meet its 20 per cent year-on-year USD revenue growth guidance for FY26.
Most of the contracts due for renewal in December are expected to be completed without any price or volume cuts, setting the stage for a strong FY27. The brokerage expects Latent View to deliver profitable growth over FY27-28E driven by four strategic growth levers: mining top accounts, expanding data engineering services, capitalising on GenAI and Agentic AI solutions, and deepening presence in BFSI, CPG, and Retail sectors.
Q3FY26 is pivotal for the company, with BFSI, CPG, and Retail verticals, supported by synergies from the Decision Point acquisition, expected to sustain strong growth. The Technology vertical may face softening demand amid client headwinds and reprioritised spending. Margin expansion is likely to continue into FY27, aided by rationalisation of G&A costs related to acquisitions and operating leverage.
A key growth driver is GenAI and Agentic AI-led solutions, which are enabling Latent View to unlock new service lines and compete with larger IT services peers. These solutions enhance productivity in customer support, labour-intensive data processes, and healthcare BPO operations. The company is actively developing PoCs in these areas, with GenAI and Agentic AI revenues expected to grow ~70 per cent Y-o-Y in FY26E, providing a major tailwind for future expansion.
With contract stability, margin improvement, and emerging AI-led opportunities, Latent View is well-placed for a profit-accretive growth phase over the next two years, making the case for the ‘Buy; rating and the higher target.
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