LTIMindtree Q4 Results Review— Dolat Capital Upgrades Rating To 'Buy', But Cuts Target Price On Mixed Earnings

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Dolat Capital Report

While LTIMindtree Ltd. did not provide any explicit or indicative guidance, management shared that it expects FY26 total contract value wins to be better than FY25 ($5.98 billion). Q4 saw slower than expected ramp-up and some deal closures shifting to Q1, and management is confident of delivering a strong Q1.

Overall, LTIMindtree is positive on navigating macro challenges and executing well for FY’26. Margin improvement is expected to be led by ‘Fit-for-future’ initiative by re-aligning direct and indirect operational costs.

LTIMindree Q4FY25 Results Highlights

LTIMindtree reported constant currency rev decline of 0.6% QoQ (our estimate: +0.3%), due to slower than expected deal ramp-up and project completion in Retail, CPG & Travel vertical. However, OPM was flat QoQ at 13.8% (in-line) due to operating efficiencies.

While there was no specific guidance for FY26, LTIMindtree remains optimistic about deal win opportunities in cost-take-out, vendor consolidation and select transformation programs. The confidence on improving TCV wins over FY25 ($5.9 billion; up 6.6%) is positive, but this potential success needs to be matched by timely execution.

LTIMindtree remains our preferred pick among tier I names, supported by healthy deal wins, strong pipeline and optimism on navigating FY26 despite macro challenges.

Given easing valuations, we revise our rating to ‘Buy’, with target price of Rs 5,690 valuing at 29x on FY27E EPS.

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