- Brokerages showed mixed views on LTIMindtree after Q3 earnings for FY26 were announced
- Consolidated revenue rose 3.7% QoQ to Rs 10,781 crore, slightly above Bloomberg estimates
- Net profit fell 31% to Rs 971 crore due to a Rs 590 crore provision for new labour codes
Brokerages offered mixed views on LTIMindtree after the company reported Q3 earnings for the financial year ending March 2026 on Monday. The IT major reported a sequential fall in profit in the third quarter of the current fiscal due to the one-time impact of new labour codes, even as operating margin rose and revenue met estimates.
Consolidated revenue from operations rose nearly 4% to Rs 10,781 crore in the October-December quarter, according to a stock exchange filing on Monday. Analysts' consensus estimates compiled by Bloomberg projected Rs 10,726 crore.
Net profit tanked by nearly a third to Rs 971 crore. The company had to make a provision of Rs 590 crore to implement changes under the new labour codes introduced by the government during the quarter.
LTIMindtree Q3 Results (Cons QoQ)
- Revenue up 3.7% at Rs 10,781 crore versus Rs 10,394 crore (Bloomberg estimate: Rs 10,726 crore)
- EBIT up 5.4% at Rs 1,737 crore versus Rs 1,648 crore (Bloomberg estimate: Rs 1,706 crore)
- Margin at 16.1% versus 15.9% (Bloomberg estimate: 15.84%)
- Profit down 31% at Rs 971 crore versus Rs 1,401 crore (Bloomberg estimate: 1,413 crore)
Reacting to the earnings, brokerages remained mixed on LTIMindtree. While Morgan Stanley hiked the target price on the counter, Citi has done the opposite, citing higher valuations.
Brokerages On LTIMindtree
Macquarie on LTIMindtree
Maintain Outperform; TP Rs 6,930.
Revenue beat with broad-based growth.
Best-in-class QoQ constant currency growth at 2.4%.
All verticals grew except BFSI.
Sees over 9% YoY USD revenue growth in Q4 FY26E.
Morgan Stanley on LTIMindtree
Maintain Equal-weight; Hike TP to Rs 6,300 from Rs 5,700.
Top hi-tech client grew in Q3; top BFSI client saw bottoming out in Q4.
Portfolio transition progressing better than peers.
Near-term margins could be a drag.
Balanced risk-reward at current valuations.
New management has established execution credibility.
Citi on LTIMindtree
Maintain Sell; Cut TP to Rs 5,415 from Rs 5,480.
Headline EBIT slightly ahead; revenues aided by seasonal passthrough.
Exit guidance closer to double-digit growth.
Wage hike impact of ~100 bps each in Q4 and Q1.
Valuation at 31x FY27E is seen as rich versus large-cap peers.
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