LTIMindtree Bets On AI To Boost Margins, Eyes Double-Digit Growth In H2FY26

LTIMindtree posted a strong second-quarter performance for FY26, comfortably beating Street expectations driven by both revenue and profitability. The growth was powered by its “Fit for Future” efficiency drive and increasing adoption of artificial intelligence across delivery and operations.

The IT services major’s consolidated revenue crossed the Rs.10,000-crore mark for the first time, rising 5.6% sequentially to Rs.10,394 crore in the Sept. quarter of FY26. EBIT jumped 17.2% QoQ to Rs 1,648 crore, while EBIT margins expanded by 160 basis points to 15.9%, driven by an 80-bps gain from the margin improvement program and a further 80-bps boost from the non-recurrence of visa-related costs and forex tailwinds.

LTIMindtree's net profit rose 11.7% QoQ to Rs.1,401 crore in Q2. Chief Financial Officer Vipul Chandra said that productivity enhancements are increasingly aided by AI deployment. “The productivity lever is aided by AI adoption. We have been adding revenue this year without really having a significant addition to our headcount,” he said, underlining how automation and generative AI tools are improving cost structures.

LTIMindtree continues to sharpen its positioning as an AI-centric organization, with its proprietary BlueVerse platform becoming a key differentiator. The company expects to reach or come close to double-digit USD revenue growth in H2 FY26, supported by a strong deal momentum.

Overall, brokerages remained optimistic on LTIMindtree post-Q2 earnings results. Nuvama Institutional Equities maintained a 'Buy' rating and hiked its target price to Rs. 6,900 (from Rs. 6,200), calling the quarter “a beat on all counts” and raising FY26–27 EPS estimates by about 4%.

Emkay Global retained its 'Add' rating with a target price of Rs. 6,200, citing margin strength and deal momentum, while noting near-term softness among top five clients. "With improving margins, deepening AI integration and margin expansion program, LTIMindtree appears well-placed to deliver growth and sustained profitability expansion in the second half of FY26," it said.