Bengaluru: LTM expects business momentum to strengthen through the rest of FY27 as enterprises move beyond AI experimentation and begin deploying the technology at scale, its CEO Venu Lambu said on Monday.“The industry is entering the AI deployment era, and that is our sweet spot,” Lambu told TOI. “Our largest verticals have returned to healthy sequential growth, our top clients are expanding spending, and these are strong leading indicators that growth will accelerate in Q2 and beyond.”Lambu said enterprises are increasingly prioritising investments in AI readiness, including data modernisation, AI-led software engineering and business process transformation, even as macroeconomic uncertainty persists.AI-native services contribute about $150 million in quarterly revenue, excluding AI embedded in the company’s traditional application development and managed services business. The revenue comes from three dedicated businesses—Business AI, Creative AI and Industrial AI.Lambu acknowledged that managing AI infrastructure and token costs is becoming increasingly important for customers.“Token cost is definitely an issue today, but different use cases require different deployment strategies. You don’t need the entire AI stack for every problem,” he said, adding that customers are increasingly seeking help to optimise deployment architectures and maximise returns on AI investments.The company expects further margin improvement after a stronger-than-expected first quarter despite annual wage hikes. Lambu attributed the gains to favourable currency movements and the company’s New Horizon transformation programme, focused on operational efficiency, AI capability building and new growth initiatives.On hiring, Lambu dismissed concerns that AI would sharply reduce campus recruitment. LTM hired around 6,000 freshers last year—more than its lateral hires—and added over 1,100 fresh graduates during the June quarter. The company expects to maintain a similar pace of hiring, although onboarding timelines may be aligned with business demand and AI training schedules.“We are undertaking one of the largest talent transformation programmes in the company’s history. Freshers remain an important part of our hiring strategy,” he said.
