LTIMindtree Q2 Review: ICICI Securities Maintains 'Reduce' Rating, Sees 14% Downside — Check Target Price

H2 is especially weak for LTIMindtree, given its heightened sensitivity to furloughs, adds ICICI Securities.

LTIMindtree's TCV stood at $1.59 billion, including large media deal, down 2.5% QoQ, coming off from large $450 mn business deal from Q1FY26 with an agri-business leader.

(Image: NDTV Profit/Vishal Patel)

LTIMindtree is focused on maintaining sustained profitable growth and aims to expand Ebit margin going forward despite furlough seasonality. LTIMindtree has plans to hike wages spread equally over Q4 FY26 (starting Jan’26) and Q1 FY27 (starting Apr’26).

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

ICICI Securities Report

LTIMindtree Ltd.’s revenue growth saw acceleration (2.3% QoQ USD) led by retail and healthcare verticals. BFSI continued to be weak with a six-quarter weak print of 0.1%, contrary to the broad sectoral trends. Total contract value, at $1.59 billion, included the media vertical mega deal.

160bps QoQ margin uptick was sharp, led by -Fit for Future initiatives and cuts in selling general and administrative spending. Company’s outlook is positive for H2 FY26 on both revenue and margin fronts. However, top-5 client weakness arising from AI-led gain sharing is an overhang and has been ongoing since Q3 FY25.

H2 is especially weak for LTIMindtree, given its heightened sensitivity to furloughs (59% exposure to BFSI + hitech verticals). We maintain Reduce with a one-year forward target price of Rs 4,820 on an unchanged target P/E of 22x.

We have factored in H2 FY26 YoY growth of 7.5% (vs 5% growth in H2 FY25) given the rampup from PAN 2.0 and media vertical mega deal and revised FY26 EPS by 3.3%.

Click on the attachment to read the full report:

ICICI Securities LTIMindtree_Q2FY26_Results_Oct25.pdf
Read Document

Also Read: Wipro Q2 Review — Dolat Capital Maintains 'Reduce' Rating; Sees No Significant Triggers In Near-Term

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

lock-gif
To continue reading this story You must be an existing Premium User
Watch LIVE TV, Get Stock Market Updates, Top Business, IPO and Latest News on NDTV Profit. Feel free to Add NDTV Profit as trusted source on Google.
GET REGULAR UPDATES
Add us to your Preferences
Set as your preferred source on Google