LTIMindtree’s share price has risen sharply, gaining about 18% over the last three months, well ahead of the broader IT index.
New AI and Digital Contracts Drive Growth
In the July‑September quarter the company secured $1.6 billion worth of new project contracts. This pushes its order book above $1.5 billion for the fourth straight quarter, largely from digital‑transformation and artificial‑intelligence projects across key industry sectors.
Revenue and Profit Highlights
- Revenue rose 2.3% sequentially to $1.18 billion (₹10,394.3 crore), marking the sixth consecutive quarter of growth and crossing the ₹10,000 crore milestone for the first time.
- Net profit increased 10% sequentially to ₹1,381.2 crore.
- Operating margin improved by 160 basis points to 15.9%, helped by cost‑saving measures, no visa‑related expenses and a favorable currency effect.
Shift in Business Mix
The banking, financial services and insurance (BFSI) segment, which contributed about 36% of revenue, showed only 0.2% sequential growth, and its share of total revenue slipped slightly. The top five clients also accounted for a smaller portion of revenue (25.3% down from 27.3%). Management says these are temporary adjustments as AI‑driven productivity gains are implemented, not a permanent decline.
Analyst Outlook
Analysts have raised their target price for LTIMindtree by roughly 15%, reflecting confidence in the company’s pipeline and efficiency initiatives. Elara Securities keeps an “accumulate” rating, expecting earnings to rise 4‑7% in FY26‑27 and further margin expansion. The stock closed at ₹6,161 on the BSE.
Remember, this is perspective, not prediction. Do your own research before making any investment decisions.