LTIMindtree has multiple headwinds in margins like calibration of utilization, re-investment in business and increasing depreciation (on account of building office spaces and capabilities around AI/Gen AI). Management would guide the margins in next couple of quarters, till, the brokerage believes, margins to be in the range of 15% -16% for FY26 and FY27.
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.
IDBI Capital Report
LTIMindtree Ltd. reported muted Q4 revenues at $1,131 million, reflecting a sequential decline of 0.6% in constant currency, primarily impacted by deferrals in deal ramp-up amid late-quarter macroeconomic headwinds.
Despite the softness, management remains upbeat, anchored by robust deal wins exceeding $1.5 billion over recent quarters and a guided uptick in the FY26 order book versus FY25.
Under the new CEO's leadership, the company has articulated a strategic pivot centered on-
sales transformation,
multi-modal service delivery, and
enhancing agility and profitability.
A concern of passing on AI productivity benefits lauded last quarter shall not spill over to the coming quarters. Management reiterated that headcount expansion will increasingly decouple from topline growth, underscoring structural efficiency gains from AI adoption.
We believe the transformation journey is at a nascent stage, with long-term tailwinds aligning for sustained revenue acceleration. Accordingly, we upgrade our stance to Buy from Hold, valuing the stock at 25.5x FY27E EPS, translating to a target price of Rs 5,295.
Click on the attachment to read the full report:
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.
RECOMMENDED FOR YOU
Tesla Unveils First India Store In Mumbai's BKC, Deliveries To Start From Q3
Jul 15, 2025
IDBI Bank Shares Jump Nearly 5% After Disinvestment Said To Be In Final Phase
Jun 30, 2025
Vishal Mega Mart Shares Hit Over One-Month Low After Promoter's Stake Offload
Jun 17, 2025
 14_03_2024..jpg?rect=0%2C0%2C3500%2C1969&w=75){kind=spacer}
Ahluwalia Contracts Q4 Results Review: Dolat Capital Downgrades To 'Reduce', But Hikes Target Price
Jun 03, 2025
POPULAR