LTIMindtree Q2 Review: A Comprehensive Analysis
LTIMindtree Ltd. has reported its Q2 FY26 results, and the numbers are impressive. The company’s revenue stood at $1.1 billion, up 2.4% QoQ CC, beating Motilal Oswal’s estimate of 2.0% QoQ CC growth. The Ebit margin was also ahead of expectations, coming in at 15.9% compared to Motilal Oswal’s estimate of 14.9%. The PAT stood at Rs 13.8 billion, up 10.1% QoQ/10.4% YoY, and in line with the estimate of Rs 13 billion.
Motilal Oswal has maintained its ‘Buy’ rating on LTIMindtree, citing the company’s capabilities in data engineering and ERP modernization. The company’s broad-based vertical momentum and sustained deal pipeline support the confidence in ~6% constant currency revenue growth for FY26E.
Margin Performance Ahead of Expectations
The margin performance of LTIMindtree has been ahead of expectations, aided by the ‘Fit4Future’ program. The company expects further expansion over H2, driven by the benefits of the ‘Fit4Future’ program and the improving revenue visibility. The earnings growth potential of 13-15% over the medium term is also a positive factor.
The ‘Fit4Future’ program is a key initiative by LTIMindtree to drive growth and profitability. The program aims to improve the company’s operational efficiency and reduce costs. The benefits of the program are expected to be visible in the coming quarters, and the company is confident of achieving its growth targets.
Improving Revenue Visibility
LTIMindtree’s revenue visibility has improved significantly, driven by the company’s strong deal pipeline and broad-based vertical momentum. The company has reported a revenue growth of 2.4% QoQ CC, beating Motilal Oswal’s estimate of 2.0% QoQ CC growth. The revenue growth is expected to continue in the coming quarters, driven by the company’s capabilities in cloud computing and digital transformation.
Earnings Growth Potential
LTIMindtree’s earnings growth potential is 13-15% over the medium term, driven by the company’s improving revenue visibility and margin performance. The company’s ‘Fit4Future’ program is expected to drive growth and profitability, and the benefits of the program are expected to be visible in the coming quarters.
The Indian IT sector is expected to continue its growth momentum, driven by the increasing demand for digital services and cloud solutions. LTIMindtree is well-positioned to benefit from this trend, given its capabilities in data engineering and ERP modernization.
Target Price
Motilal Oswal has maintained its target price for LTIMindtree, citing the company’s strong growth momentum and improving revenue visibility. The target price is based on the company’s earnings growth potential and the expected benefits of the ‘Fit4Future’ program.
Investors can consider buying LTIMindtree, given its strong growth momentum and improving revenue visibility. The company’s ‘Fit4Future’ program is expected to drive growth and profitability, and the benefits of the program are expected to be visible in the coming quarters.
Conclusion
LTIMindtree’s Q2 performance has been impressive, with the company reporting revenue of $1.1 billion, up 2.4% QoQ CC. Motilal Oswal has maintained its ‘Buy’ rating, citing the company’s capabilities in data engineering and ERP modernization. The company’s broad-based vertical momentum and sustained deal pipeline support the confidence in ~6% constant currency revenue growth for FY26E.
Investors can consider buying LTIMindtree, given its strong growth momentum and improving revenue visibility. The company’s ‘Fit4Future’ program is expected to drive growth and profitability, and the benefits of the program are expected to be visible in the coming quarters. For more information on stock market news and investment tips, please visit our website.
