LTIMindtree Q1 net profit up 10.6% to ₹1,254.6 crore, beats estimate

LTIMindtree beats profit estimates in Q1FY26 with 10.5% YoY growth; revenue misses forecast slightly as macro challenges persist and hiring slows

LTIMindtree on Thursday reported net profit of ₹1,254.6 crore for the first quarter of the financial year 2025-26, up 10.6 per cent year-on-year (Y-o-Y). Sequentially, the profit increased 11.2 per cent.

 

Revenue for the quarter grew 7.6 per cent Y-o-Y to ₹9,840.6 crore. The revenue grew marginally by 0.7 per cent compared to the last quarter.

 

The company’s performance missed analysts’ estimates on revenue. According to Bloomberg, net profit was expected to be ₹1,194 crore and revenue at ₹9,855.4 crore. The company’s performance was much better compared to the larger peers. 

 

India’s largest IT services provider TCS reported a net profit of ₹12,760 crore for the first quarter of FY26, up 6 per cent compared to ₹12,040 crore in the same period of FY25. HCLTech on Monday reported net profit for the first quarter of 2025-26 at ₹3,843 crore, down 9.72 per cent year-on-year.

 

“We had a promising start to the year, delivering broad-based growth, expanding margins, and making significant progress on our strategic priorities. Our Fit4Future programme, sales transformation efforts, and pivot to AI have enhanced agility and strengthened our ability to scale for the future,” said Venu Lambu, chief executive officer and managing director.

 

Lambu further added that though the macroeconomic environment remains challenging, the firm’s execution and client focus will continue to drive its performance.

 

The total contract value (TCV) for the quarter was up 15 per cent to $1.6 billion.

 

Growth driver for the quarter in terms of verticals was consumer business, growing 6.2 per cent sequentially and 5.7 per cent Y-o-Y, followed by the BFSI segment, which grew 1.6 per cent Q-o-Q and 10.6 per cent Y-o-Y. Healthcare Life Sciences & public services grew 4.8 per cent Q-o-Q, but was down 4.7 per cent Y-o-Y.

 

In terms of geography, the US grew 1.8 per cent Q-o-Q and 4.2 per cent Y-o-Y while Europe was up 9.7 per cent sequentially and 7 per cent Y-o-Y. The rest of the world was down 6 per cent Q-o-Q and grew 10 per cent Y-o-Y. 

 

For the quarter ending June 30, 2025, the total headcount of the firm was at 83,889, which was down by 418. Attrition for the firm was at 14.4 per cent.

 

The company also announced that its board has approved the issue of 67,252 new shares, each valued at ₹1, to the LTIMindtree Employee Welfare Trust, under its Employees Stock Option Plan of 2021 and 2015. The shares will later be transferred to eligible employees upon exercise of options.