Order payload propels LTIMindtree into orbit as deal wins stay strong

$1.59 billion in contracts fires revenue boosters; margin gains provide sustained lift

LTIMindtree shares touched a one-year high last week, outpacing the rest of the information technology (IT) pack with a 39.5 per cent jump since April 1. It remains the top performer in the Nifty IT index year-to-date, returning 12.6 per cent against the index’s average return of –10.7 per cent. Investors are betting on steady deal closures, margin improvement through lower costs and rupee depreciation, and double-digit revenue growth in the second half (H2) of 2025–26 (FY26). 

Deal flow remains strong and is expected to support revenue growth over the coming quarters. Total contract value in the second quarter (July–September/Q2) came in at $1.59 billion — a 22 per cent rise year-on-year — marking the fourth straight quarter of record deal wins. The book-to-bill ratio stood at 1.35x for the quarter versus 1.33 in 2024–25 (FY25). 

Management said revenue conversion is shaped by deal-specific transition timelines, phased ramps linked to multi-year vendor consolidation renewals, and periodic pricing resets. With a steady pipeline, it guides revenue to hold firm over the next two quarters, with growth picking up in H2FY26. 

Axis Securities projects annual revenue and operating profit growth of 9 per cent and 13 per cent, respectively, across FY25 through 2026–27 (FY27), supported by sustained deal inflow, deeper client mining, improved cross-sell and upsell, and greater ability to win larger mandates. It has a ‘buy’ call with a target price of ₹6,250. 

Constant-currency revenue growth in Q2 was 2.4 per cent quarter-on-quarter, ahead of estimates. All five verticals grew sequentially for the second quarter in a row. Consumer led with 9.1 per cent growth due to a partial ramp-up of a $450 million deal, followed by healthcare and public services (10.2 per cent), manufacturing and resources (1.7 per cent), banking, financial services and insurance (0.2 per cent), and technology, media and communications (0.1 per cent). 

Motilal Oswal Research, led by analyst Abhishek Pathak, expects a 2.5 per cent quarterly growth print in H2FY26, taking the dollar-revenue exit rate close to 9 per cent. If deal signings remain firm, double-digit growth in FY27 also looks achievable, the brokerage said. It maintains a ‘buy’ rating with a target price of ₹6,650. Estimates have been raised by 5.1 per cent for FY26 and 3.8 per cent for FY27 on improved visibility and earnings growth of 13–15 per cent over the medium term.

 

Profitability is another lever. Operating margins expanded by 160 basis points sequentially in Q2 due to cost optimisation, lower visa expenses, and currency gains. Despite scheduled wage hikes in H2FY26, ongoing efficiency efforts and operating leverage indicate further upside for margins in the quarters ahead.

 

Sharekhan Research expects LTIMindtree to benefit from a pick-up in discretionary spending, steady large-deal flow, and scope for margin improvement, offering a favourable risk/reward profile. It has a ‘buy’ rating with a revised target price of ₹6,827.

 

On current trends, Equirus Securities expects LTIMindtree to deliver among the strongest sales and profit growth in the largecap IT basket — a case, it says, for a valuation premium over peers.