LATENTVIEW — earnings call

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Prepared remarks

Moderator · Conference Operator

MS. ASHA GUPTA – E&Y LLP, INVESTOR RELATIONS LatentView Analytics Limited August 03, 2026

Ladies and gentlemen, good day, and welcome to the Latent View Analytics Limited Q1 FY27

Questions and answers

Moderator · Conference Operator

Ladies and gentlemen, we will now begin with the question-and-answer session.

The first question is from the line of Aditi Patil from ICICI Bank.

Aditi Patil

Yes.

Thank you for the opportunity.

My first question is on our revenue guidance of 12% for the full year.

That implies a very high sequential growth rate in next three quarters, maybe 7% plus CQGR.

So, is this based on the deals which we have already won?

Or does it also depend on closure of some deals in the pipeline?

My second question is on that this quarter, we have shared our SG&A cost, COE cost, and gross margin.

So, excluding the direct cost, SG&A and COE, the remaining portion, 21% of revenue, what are the major components to which we can attribute this cost, because this seems on the higher side?

And my third question is on the transaction-related expenses.

Earlier, we had mentioned that by Q4 FY26, the transaction-related expenses will be completed.

How long do we expect that to continue, LatentView Analytics Limited August 03, 2026 because we have it in this quarter as well?

Rajan Sethuraman

Okay.

Thanks for the question.

I will answer the part related to the growth trajectory, and then I'll pass it to Raj for answering the other questions.

The confidence in relation to the 12%, we can see it in the confirmed numbers for this quarter, the quarter that is currently underway, Q2. Of course, a few of the other things that I mentioned in the pipeline, and the expansions and extensions, need to come through for the 12% for the overall year.

But out of the overall pipeline of extensions and new opportunities, for the 12%, there is a reasonable confidence at this time that those line items will come through.

There are other line items in the pipeline which, if they materialize, then we could go past the 12% number.

But at this point in time, for the next quarter, there is a good deal of confidence, and we have reasonable confidence for the 12% that I talked about.

Aditi Patil

So, we do not see any downside risk to this 12% guidance at this point of time?

Rajan Sethuraman

Yes, unless there are any other adverse events that happen in terms of what we are currently seeing as confident line items, I mean, this is something that we typically keep evaluating on an ongoing basis for every opportunity that we are pursuing.

For this 12%, there is reasonable confidence, we should be able to go into that.

Aditi Patil

Okay.

Rajan Venkatesan

Aditi, your next question was in relation to the split of the cost.

So what you see is direct cost, SG&A.

So, SG&A, by the way, just to sort of help you understand, this is just a pure overhead cost.

So what incremental to this, you will see the payroll cost of sales and marketing, as well as the corporate management costs.

So all of the payroll cost in relation to that is in addition to this.

So the remaining 20% is comprised of those costs.

Aditi Patil

Okay.

And the transaction-related expenses, will they continue for this year?

Rajan Venkatesan

No. So, this is the last quarter in which we have transaction-related costs.

From this point onwards, you will not see that going forward.

Moderator · Conference Operator

The next question is from the line of Sankaranarayanan from ithought PMS.

Sankaranarayanan

Firstly, on the productivity gains that you are taking.

So, if you could help us understand what are the typical range that we see in our existing book of business.

And at the time of renewal, does the client want to reinvest back to us?

And I wanted to know the equation where, let's say, a client prefers to spend that analytic spend with you and areas that they want to capture those benefits within themselves.

Rajan Sethuraman

See, the general productivity lift that we are seeing, at least with the projects that we have completed so far, in terms of pure efficiency, productivity gains, and the speed at which you're able to do the work.

It ranges all the way from 30% to 80%.

So there are several engagements where the productivity benefits are fairly large.

Like I said earlier, I mean, if it is a very well understood area and then you can create the kind of an agentic architecture or solution that addresses all the aspects with the right kind of governance and LatentView Analytics Limited August 03, 2026 guardrails, then it is possible to significantly bring down the effort.

However, I do need to add a caveat here that a lot of the work that we do is in the nature of helping with optimization and decision-making.

And optimization and decision-making context and questions keep changing all the time.

Therefore, you do need to put in effort on the new questions that come in.

Of course, even that will benefit from the productivity gains, but it is not like a customer contact center, for example, where if you come up with an agentic solution, then you can go ahead and then actually eliminate a fairly large number of humans in the loop.

The nature of the work that we do is different, and therefore, we'll have to take it in that context in terms of how things are going.

On the other part related to whether clients will want to do a lot of these things themselves, I would say that it is not that easy.

In many instances, the issues that clients grapple with involve 3 or 4 areas.

One is just the data silos and the fact that you need to bring it all together and then put it into the kind of platform and architecture that allows you to capitalize on the AI opportunities, on the AI stack that is available.

Secondly, as I mentioned, you need to get alignment between your infrastructure, your use of external large language models, your internal SLMs and RAG models, and the semantic layers and the knowledge graphs that I talked about and then your own internal data platform, whatever you are standardized on.

That alignment between the stack is also a fairly complex thing, and there are innumerable choices available to clients and they need to make the choices that will actually have the right kind of impact, not just in terms of the effectiveness and the efficiency of the solution, but also in terms of the governance, the transparency, the guardrails, and all that.

So, this is a challenging thing.

And I do believe at this point in time that organizations will need the help of external participants who are more in the now and who are constantly evaluating and answering these kind of questions.

So, my expectation is that this will continue, and this complexity is only increasing.

I talked about how many organizations will want to do this within their walled garden.

And therefore, it is not just as simple as saying that I will just depend on an OpenAI or Anthropic to do all the solving for me and then throw all of your data and context right over to them.

You got to figure out how you want to architect these things internally, and that is where partners like us can be of help.

Sankaranarayanan

Second, our target of achieving USD 200 million revenue by FY 28 and '29.

So how much of that will be achieved through inorganic activities?

And if a good portion of that comes from an organic perspective, which verticals do you see that it can help to achieve this number?

Rajan Sethuraman

The organic part of it, I'll answer the second part of the question, and then I'll get to the numbers.

The organic part of it, I think we see very strong momentum in our financial services practice.

We already have one significant health care client on the payer side.

You all know about the investment that we have made in Healtheon, which is a revenue cycle management company.

They are now in the process of building out all the agents that will not only address the RCM problem, but many of them, in a componentized fashion, can be used for addressing aspects within other LatentView Analytics Limited August 03, 2026 problem statements as well.

So, we are expecting the financial services and health care life sciences to get some good momentum on the back of everything that we are already doing on an organic front.

We are also seeing very strong momentum in our retail marketplaces vertical.

I mean, marketplaces is kind of part of the technology thing.

But internally, we look at retail and marketplaces together.

So, whether it is e-commerce platforms or whether it is food providers, or whether it is other fashion retailers, or any other platforms that are available, we see good strong traction in all of them, both in existing accounts as well as new accounts.

Our industrial practice has also been growing.

I talked about work that we are doing with auto and auto components.

We are starting to do work with data centers and data center infrastructure.

That will come under the industrial practice, with the technology flavour, but of course, I mean, if you're running the center.

So, we are seeing strong momentum in all of them.

Consumer goods is where we do need to convert the pipeline that I mentioned.

It should see a bounce back through the course of this year.

So all these things provide some degree of confidence that the organic growth trajectory itself will be strong.

Now, how much of that USD 200 million, we will get to that?

I mean, it will all depend on how this year plays out.

We have two years, this year and the next year available to us.

Last year,against an average trajectory of about 26%, 27% that we needed to be on, we did about 19%, 20%.

Now this year, I indicated that the confidence is there for 12%, but many things need to materialize, right, for us to go past that number.

Now obviously, we are always evaluating inorganic opportunities.

There are one or two very strong opportunities in the pipeline.

One of them is very interesting because it's a mix of health care, life sciences as well as data engineering work.

And we believe that, that could be a great combination.

We are in the final two there.

I mean there is a letter of intent, and discussions going on at this time.

So, whatever we are able to do through organic, the gap will look to fill through inorganic opportunities.

If we do it in one of those momentum spaces, then even the inorganic part that we do will start contributing towards the USD 200 million trajectory, not just for the current year alone, but for the next year as well, rate growth on track.

So that's what we invest.

Sankaranarayanan

Got it, sir.

And finally, I wanted to understand the number of data analytics partners that these clients will be working with.

So, are we seeing any consolidation in the number of vendors that they are working with?

Can you just tell over the process of, let's say, typically, how many vendors we may be engaging with?

And what will be our wallet share over the top account?

Rajan Sethuraman

Yes.

I'll answer this in two parts.

One is, in general, for very large organizations, I'm talking Fortune 500, Fortune 50 companies, they always have an ecosystem of partners.

When I say an ecosystem, an ecosystem that could run as wide as even 20, 30 partners in the mix.

And when you talk those kind of numbers, then you're talking about a wallet share of like anywhere from 2% to 5%.

And that is because these organizations themselves have multiple businesses, multiple geographies and therefore several spending centers and budget holders, right?

And each of them, they will have LatentView Analytics Limited August 03, 2026 partners that they are familiar with and they are comfortable with.

So, this is just in terms of the large organizations.

Smaller organizations, obviously, if they are looking at a few analytics partners, right, as the primary partners.

It could be to the tune of 2, 3 partners that they work with.

I mean there are several clients where we are the only partner that they work with as well, wherein we'll have a wallet share of 100%.

So this is one aspect.

The other aspect I kind of alluded to, it is always the wallet share question is more relevant in the context of a particular business or a spending center, as opposed to looking at the entire organization, because of the nature of the work that we do.

And given that different stakeholders in the organization have their preferred partners, in most instances, even today, when it comes to new work that we are proposing or extensions, there isn't any competition that we are encountering, on that particular conversation.

Competition will always be at an overall account level, but each of us have our niches and our strong relationships, and that's what we capitalize on.

Moderator · Conference Operator

The next question is from the line of Karan Uppal from Phillip Capital India.

Karan Uppal

So, on the AI aspect, Rajan, in your opening remarks, you had mentioned about the primary AI, which is 35% of your revenue, which is traditional, generative, and agentic AI.

I just wanted to understand how are the margins in deals as well as the deal sizes are for such engagements?

And a related question to that is on the secondary AI, which is AI infused in the projects, maybe you are using Claude code, OpenAI Codex, given the tokenization debate which is happening, so would that be a margin headwind as you more and more use these tools?

Yes, these are the 2 questions.

Rajan Sethuraman

Karan, nice to hear from you.

So Karan, on the first question, I think in the medium term, the primary AI work should be margin accretive, especially as we build the foundry and the agentic platform, and we are able to do more work in a prepackaged fashion.

At this time, given the primary work in AI work involves a lot of the forward deployed engineer kind of a model, where we're sitting with the client and doing the work, a good chunk of that is also happening on-site.

I'm not saying that it's all on-site, but if I take the on-site/ offshore mix for the primary AI work, that will be a little higher in comparison to the rest of the work that we do.

And that has an impact on margins at this time.

But over a period of time, we should be able to get better pricing for the FDEs that we are deploying.

I mean, right now, it's all in the state of flux, and then everybody is trying to jockey in and get into those opportunities.

Clients are also saying how can you help us do a few things, which actually prove the case in point.

And that is the state that we are in right now.

But over a longer period of time, I'm expecting that the primary AI work will be more margin accretive as we move forward.

And your second question, sorry, Karan, if you can remind me again.

Karan Uppal

Yes.

Second question was on the secondary AI, 80% of the work which is secondary AI.

Maybe you must be using Claude code, OpenAI Codex and similar platforms.

LatentView Analytics Limited August 03, 2026

Rajan Sethuraman

Yes, you're asking about the token cost.

No, that is not a consideration at this time because in 95% of instances where AI is being used to speed up the work and improve the efficiency, the entire tech stack and the environment is provided by the client.

So, it is not a cost that we incur directly.

Tokenization costs are currently being considered only by the client at this time.

So that is the context.

But of course, they will be monitoring that.

I hear many instances and examples where people are taking a sledgehammer to a nail, and that may not be needed.

Also, in the current euphoric state, AI enablement is what is being measured.

When I say enablement, I mean organizations are looking at whether they have provided the AI tools to people.

That is the main metric rather than whether it's efficiency or an effectiveness or a velocity metric.

In this state, therefore, there is a lot of the euphoria, but I'm hearing examples already where clients are starting to really look at what does this really mean?

Because my token cost is going up significantly.

Does it make sense for me to be using an AI-led solution for this problem?

Or am I better off with more humans in the loop.

I think this is a question that will continue to get answered in the coming quarters.

Karan Uppal

Got it.

And just one follow-up on your answer to the second question.

So, clients are now preferring more opensource models, open weight models, maybe SLMs, so different models for different tasks.

So, in this context, the relevance of the system integrators like you should increase ideally.

Is that what you are also seeing on the ground?

Rajan Sethuraman

That is correct.

Because the more choice that is available in each layer of the stack, and the more the interest of enterprises in retaining much of that competitive advantage within their premises, the more complexity that will be there in decision-making.

And one is not just talking about the cost of doing it using an AI-led solution versus a human intelligence-led solution.

It's also about scalability.

It's about all of the points that I mentioned earlier in relation to governance.

And that is a fairly complex thing for organizations.

Right now, everybody is courting one another because they all know that if they don't do that, they will get left behind.

So, whether you talk about a Databricks or an OpenAI or Anthropic or any of the other infra providers as well, everybody wants to make sure that they're not getting left out.

But eventually, the competitive pressures will also come through.

Especially, I mean, if OpenAI, Anthropic do their IPOs and get listed, then there will be more questions that investors will be asking of them as well in terms of how are they realizing the return on investment for all the investments that they are making.

So, I think it will get a bit more interesting in a year from now.

But right now, everybody is just happy with everyone else in the same room.

Karan Uppal

And last question is to Raj in terms of the margin outlook.

So given where we are, our medium-term margin aspirations was, 21% to 22%.

So how soon can we get there?

Rajan Venkatesan

So, to answer that question as we continue to sort of work through the rest of the year, the couple of areas of investment that we've already outlined is Rajan also spoke about setting up the Chief AI Officer organization.

So that will be an investment that we will make as well as the investment in the LatentView Analytics Limited August 03, 2026 CDO function as well as the partnership function will be another function that we will try to definitely augment.

So those would be the two investments that I would say, which are currently not captured in the P&L as it stands today.

But as the business continues to scale, I think there is enough headroom to manage the margins at current levels.

Even for this quarter, we had guided in the range of between 20% to 21%.

I think we are very positive about holding on to the 20% to 21% for the growth profile that we intend to deliver this year, along with the investments that we've already outlined.

Moderator · Conference Operator

The next question is from the line of Pritesh Thakkar from Prabhudas Lilladher.

Pritesh Thakkar

So, I have a first question on the CPG side.

The project that we concluded in Q1, what was the quantum of revenue from that project that we could not scale to Q1?

Rajan Venkatesan

So roughly about INR 800,000 to 850,000 of projects where these were more in the nature of, I would say, onetime projects that we signed up for in Q4, where we didn't have follow-on revenue in Q1.

Pritesh Thakkar

Okay.

Understood.

And just wanted to understand how many of such project-led business contracts that we have in our portfolio, if you can bifurcate the proportion of project-led work versus managed services that you currently have?

Rajan Venkatesan

So, project-led work, on an overall basis, ranges between 15% to 18%.

Managed services is between 65% to 70%.

And then pure T&M, you can call it an augmentation type work.

So that will comprise the remaining, Pritesh.

Pritesh Thakkar

Okay.

Any visibility that we have that sort of work coming in Q2 or Q3 that will again have an impact in the following quarters or years?

Rajan Venkatesan

Not really.

I don't think we have such, lumpy sort of contracts that we anticipate in the coming quarters.

But you would also appreciate that as we continue to do more integration along with Decision Point, our endeavour over there as well is to move them from doing a lot more project-based work to maybe running larger programs within the client organization.

So that's a constant endeavour that we will have.

But the Decision Point business is where we do bulk of the contracting on the fixed-fee, fixed- scope sort of basis.

Rajan Sethuraman

I'll add to that, Pritesh, I mean, see, it's a double-edged sword.

Like I mentioned earlier, if you're going to be contracting on a managed services model or a T&M model, it is largely based on the number of people you deploy, their seniority and expertise and, in some sense, the rate that you can charge for them individually or as a team.

And it is very much predicated on the effort and the capacity that you're providing.

It's only an instance where you're contracting using model that is predicated on deliverables, milestones, outcomes that you have the opportunity to retain more of the efficiency-related margins.

So those things that we will continuously evaluate and balance it out.

So yes, obviously, but the second category of work will mean that there will be some amount of lumpiness.

So, we need to understand how much are we willing to tolerate in terms of uncertainty.

There could also be other models that evolve, maybe within the managed services construct, we might be able to dial up and dial down.

I also mentioned that we will try and find ways by which we can LatentView Analytics Limited August 03, 2026 start pricing our agentic foundry.

If we're able to do that, then some of this could be alleviated.

Pritesh Thakkar

Understood.

Now thirdly, on the AI side, we highlighted our primary and secondary of activities that we do for our clients.

So, just wanted to understand those activities are largely linked to what we are doing along Databricks, or we are solely approaching this complex part of the activities on AI?

Rajan Sethuraman

It's not just Databricks.

It is across multiple options that are available to clients, and it is also across the stack.

So, the nature of the work itself could range all the way from just helping with data foundations, data engineering pipelines, events, and batch processing.

I mean, it could be any of those things on the data layer.

It could also be any kind of analytics, all the way from diagnostic, descriptive, predictive, prescriptive, whatever model building, business insight generation, dashboards, optimization and decision-making, right calls on spending money, whether it is marketing spend or supply chain inventory spend.

So, it could be a fairly broad spectrum of work, which means that we will have to do work with the partner that the client is already working with.

This work, therefore, ranges across Databricks, Snowflake, GCP, work that we are doing on Microsoft and Azure, just from a data platform AWS as well.

And then it will also leverage all kinds of other ecosystem players, whether it's on the infrastructure layer, whether it's the dashboarding reporting layer, or whether it is the algorithmic approaches that are available from different partners on the analytics and modelling algorithms.

So, it's a fairly broad ecosystem that we need to partner with.

Moderator · Conference Operator

The next question is from the line of Shubhi Gupta from Trinetra Asset Managers.

Shubhi Gupta

My question is that you mentioned just some time before that all the players have their own niche.

So, if you could throw some more light on the competitive positioning of the company versus our peers?

And if there is any moat, how do we see that?

Rajan Sethuraman

Yes.

So, Shubhi, our history and experience have been largely at the front end of the value chain.

By that, I mean all the way from customer and marketing analytics to fraud, risk, compliance, and financial analytics because these are interventions, decision-making and optimization interventions that you need to make right at the time of acquiring the customer, marketing to them and retaining them.

So, work related to segmentation, cross-sell, loyalty, personalization, marketing return on investment, media mix model.

These have been our traditional forte.

Fraud detection, counterfeit detection, and figuring out whether a transaction is fraudulent are all areas where we have very strong credentials by virtue of working with many tech companies, e-commerce platforms, and all other kinds of tech- based interaction systems that are there.

Interestingly, these are also now being adopted by consumer and retail companies.

For example, retail media network is a very big phenomenon today, and many of the capabilities that we have built in working with the tech ecosystem is relevant there as well.

But our forte is really in the front end of the value chain.

Supply chain has been an emerging capability area for us.

So this is something that we are building.

And again, if you look at it from an industry perspective, the big chunk of work that we do is still with LatentView Analytics Limited August 03, 2026 the tech companies.

But we have seen phenomenal growth in financial services, particularly in relation to asset management, payments ecosystem, many digitally intermediated kind of industries and sectors.

That is where our capabilities lie.

As more sectors and more organizations start leveraging digital mechanisms, whether it is their internal supply chain or whether it is their interaction with their customers, we believe that our forte and our capabilities will be relevant to them.

Moderator · Conference Operator

The next question is from the line of Agam Shah, an Individual Investor.

Agam Shah

Two questions.

In your comment on the opening remarks, you mentioned that there was some softness from a few of your customers.

Could you elaborate on that?

So, what is exactly happening on the demand front?

And what is the expectation from the client end?

And second thing, if I heard it correctly, so for the full year, the growth guidance you have been giving is 12% last two years, we've been growing in about the range of 17%, 18%.

So, is it that the visibility so far we have is guiding it this year seems to be a little softer in terms of growth?

Rajan Sethuraman

Sure.

Thank you for your questions, Mr. Agam Shah.

The softness that I alluded to, one was the particular account in the tech space where we talked about some amount of insourcing and consolidation.

And that did erode almost USD 7 million, USD 8 million of business for us.

That business, which we were doing last year, and which we are now opening created a gap down.

That is also one of the key reasons for the 12% guidance.

I mean if that USD 8 million, USD 9 million of revenue were there, then we would have been able to give much better guidance for this year.

But having said that, I mean, that was triggered by two reasons.

One is there was a change in leadership at the client end.

And the person who came into the role had a very personal philosophy, in terms of how much work they wanted to do with their vendors and partners versus what they want to do internally.

There was also a cost reduction mandate that was given out, largely driven by the fact that tech companies in this particular organization, they are investing trillions, billions of dollars into data center infrastructure and AI-related infrastructure.

So, all of that has meant that we witnessed this impact in this particular account.

But it is in the very same account where we are seeing a lot more opportunities.

I alluded to opportunities within their cloud business, within their platform using which they disseminate applications.

I talked about the work that we're starting to do for their finance function.

All of that gives us confidence that even though we started with a gap down this year, we will be able to more or less plug that gap in that account during the course of this year itself.

Of course, in a better year, it would have meant that we would have been able to grow on top of the base that we have built.

And that is also the reason why our guidance is muted. for this year, it's at 12% rather than being at the 17%, 18% that you mentioned.

Agam Shah

Okay.

And also one more continuation part.

So, is it that the backlog for the target to achieve USD LatentView Analytics Limited August 03, 2026 200 million for FY28, '29 would be much higher year in terms of growth?

And will it be done by inorganic, as you said?

Or so how are you looking at it?

Rajan Sethuraman

Yes.

We do need to ratchet it up, obviously.

I mean, because of what we are seeing at the start of this year, we'll have to press the pedal on many things in terms of accelerating it from here on.

And some of the things that I talked about, whether it is the Chief Technology and AI Officer idea or the doubling down on not just Databricks as our partners, but I talked about Snowflake, for example, we have a partnership that we are doing with OpenAI and Anthropic.

The AI-led focus is what we are expecting will really help us from an organic standpoint.

The inorganic strategy will have to dovetail with that.

I mean we see a very strong momentum in financial services and health care and life sciences.

And that is the sector where we are also looking to double down on the inorganic front.

So, the combination of these things is really what we need to deliver on in terms of ratcheting up the growth rates that we need in order to get to the USD 200 million mark.

Obviously, all of this is also contingent on in general, how the macroeconomic scenario plays out and all that.

But we believe that we are positioned well that we are making the right moves at this time, whether it is internal capability building, the solutioning, the platform, the agentic foundry that I called out, or whether it is the go-to-market and the partnership action that we are currently executing.

Moderator · Conference Operator

The next question is from the line of Rohan Nagpal from Helios Capital.

Rohan Nagpal

So, one thing on the volume discount, how much of an impact did that have on revenue, the volume discount they provided to the FS customer?

Rajan Venkatesan

Yes.

So, this particular quarter, that impact was close to about 400,000 in dollar terms.

Rohan Nagpal

And the second question was, when you had given guidance in Q4, you had said 21% to 22% EBITDA.

That was planned using 92-odd levels for the currency.

Just wanted to understand how exactly does the movement in the dollar change impact your margins?

How much is, a natural hedge?

And for every rupee of depreciation, how does that impact your margin?

And is that still in play?

Or is that sort of washed out by additional investments that you have planned?

Rajan Venkatesan

So Rohan, so if I understand your question correctly, your question is the guidance was in Q4 was to deliver between 21% to 22% in EBITDA.

But then given the appreciation in the dollar, why aren't we seeing the goodness from that appreciation flowing into the bottom line, correct?

Rohan Nagpal

Yes, over the course of the year because you had a bunch of impacts this year.

So just wanted to know, one, is that 21% to 22% still in play?

And is the upside still in play, given the investments that you've outlined?

Rajan Venkatesan

Rohan, for this year, obviously, like I said, our guidance would still stay in the 21% to 22% range.

In fact, some of the investments that we are outlining towards setting up the Chief Technology and AI Officer function as well as the partnership function will offset any benefit that we will see from dollar appreciation.

We believe that these investments are also very important for us to set up the business for sustainable growth.

So, our focus will be to operate in the margin range that we've guided, our LatentView Analytics Limited August 03, 2026 immediate focus is to set up these functions, which will help us deliver the growth that we need to push for to get to the USD 200 million revenue guidance that we put out.

So, at this point, we don't intend to up the EBITDA margin guidance.

Moderator · Conference Operator

Ladies and gentlemen, we'll be taking the last question.

That is from the line of Pritesh Thakkar from Prabhudas Lilladher.

Pritesh Thakkar

So just one data point from my side.

On the Databricks engagement, how much is the revenue for this quarter or if you can provide a little bit detail on that.

Rajan Venkatesan

Yes.

So we guided last year that the net new revenue, which is purely Databricks revenue, where it's either clients that we've sourced through the channel or have been sort of introduced to us by Databricks.

That revenue for the last year was close to about USD 5 million.

But work that we do on top of the Databricks platform or ecosystem, which drives consumption for Databricks was close to about USD 17.5 million to USD 18 million for the last year.

The run rate continues to be the same for Q1 as well.

But what we are very excited about is a few of the opportunities that we are currently chasing, which are there in the pipeline, which should push that revenue up.

But for now, the revenue continues in the same run rate as it was for the last year.

Rajan Sethuraman

Yes.

In fact, I would say it's strengthened a bit actually in comparison to the last quarter.

I think last quarter, we did about USD 7.5 million, roughly that number.

This quarter is also about USD 7.8 million or so, and we are seeing that, that will bump up to about USD 8.5 million, right next quarter in terms of just the data work that we are doing on the Databricks platform.It doesn't mean that we are implementing Databricks.

In several instances, it could be that we are using the Databricks platform to deliver the analytics use case or the AI use case that we might be executing.

But the momentum is fairly strong.

Pritesh Thakkar

Understood.

And lastly, on the margin side, I mean, you indicated 70% of the workforce you've given out wage hikes this quarter.

So, 30% is still left.

So how much is the impact we're expecting in Q2?

Rajan Venkatesan

The additional products, so we did talk about it.

Bulk of the wage hikes are already done.

So, you saw 2.7% impact.

You would see a further impact of about 40 to 50 basis points in the following quarter, but we believe that the bounce back in the business should be able to absorb the incremental cost.

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, that was the last question.

I now hand the conference over to the management for the closing comments.

Rajan Sethuraman

Yes.

Thank you.

I think we covered quite a bit in our opening remarks as well as the Q&A session.

I am fairly enthusiastic about the whole AI evolution that is happening.

And while there have been concerns related to what will this mean for services organizations and all that, today there is a lot more confidence that service providers and partners will be needed in the mix in order to help clients navigate the complexity that is emerging.

And I also alluded to the fact that enterprises will want to retain their secret sauce within their premises, within their walled garden, so to speak.

And I think that is what creates a lot of opportunities.

There is more urgency and in general, a sense of optimism with clients in terms of moving forward with a bunch of things.

So, we are expecting that all of that will translate and add to the momentum in LatentView Analytics Limited August 03, 2026 the coming quarters.

Of course, the general overall macroeconomic dynamics, the war, all of these things will also play out, over the next few quarters.

So, I would just want to make sure that we are doing everything that we have within our control to help navigate what we witnessed in terms of complexity and changes that happen.

But otherwise, we are internally preparing and doing all the right things, whether it's our structure, our people, process capability, tech enablement.

And that's what the focus will be in the next few quarters as well.

I will hand it over to Sonal also to share her remarks and then we close the call.

Sonal Ramrakhiani

Thank you.

Yes, just to reiterate the points that Rajan was making, I think overall, demand-wise, there is a fair bit of bullishness.

Of course, it's dependent on how close we get to customers and our execution strategy, like I mentioned in the beginning.

Over the next few weeks, as I deep dive more into everything that's latent View, those are the elements that we will be fleshing out that we will be putting in place.

Some of you asked the questions on the long-range plan and what we are doing as far as specifics are concerned.

Those are the details that we will be fleshing out, get back to you, and hopefully have another conversation to walk you through that and get your feedback.

But overall, like I said, from an industry perspective, yes, there are some uncertainties and macroeconomic changes that are happening, etcetera.

But it's about the planning and the risk management and that and most importantly, on the execution of what we've already laid down as our strategic focus areas, whether it is organic growth, inorganic investments, geographic expansion, all of that.

Stay tuned.

We will come back to you with more details on the granularity of that, and I'm looking forward to engaging further with you and for your support and partnership.

Thank you.

Moderator · Conference Operator

Thank you, members of the management team.

Ladies and gentlemen, on behalf of Latent View Analytics Limited, that concludes this conference call.

We thank you for joining us, and you may now disconnect your lines.

Thank you.

Note

This transcript has been edited for readability and does not purport to be a verbatim record of the proceedings.