LTIMindtree Q2 revenue, margins beat estimates; Analysts turn bullish

Information technology firm LTIMindtree (LTIM) delivered a robust performance in the September quarter of financial year 2026 (Q2FY26), reporting revenue and margin growth that exceeded market expectations, signaling a potential turnaround after multiple quarters of uneven performance. The company’s strong deal wins and margin expansion have drawn bullish reactions from major brokerages.

 

On the bourses, LTIMindtree share rose as much as 2.32 per cent to hit an intraday high of ₹5,750.60 per share. However, by 9:45 AM, LTIMindtree was off day’s high, and was trading 0.53 per cent higher at ₹5,650 levels. In comparison, BSE Sensex was trading 0.1 per cent higher at 83,552.49 levels.

 

 

The IT services firm posted revenue of $1.18 billion, up 2.4 per cent quarter-on-quarter (Q-o-Q) in constant currency, above analysts’ estimates of 2.0 per cent-1.9 per cent Q-o-Q CC growth. Ebit margin expanded 160 basis points to 15.9 per cent, also surpassing expectations, while PAT stood at ₹1,380 crore, broadly in line with estimates. In rupee terms, revenue, Ebit, and PAT grew 8.9 per cent, 8 per cent, and 10.4 per cent year-on-year (Y-o-Y) in the first half of FY26. 

 

Motilal Oswal described the quarter as a “breakthrough on growth and margins,” noting that the company’s Fit4Future programme contributed roughly 80 basis points (bps) to margin expansion, with currency tailwinds adding another 80 basis points. The brokerage highlighted that revenue visibility for the next three quarters remains strong, with management expecting a 2.5 per cent compound quarterly growth rate (CQGR) in H2FY26, bringing LTIM’s USD growth exit rate closer to 9 per cent. 

 

“Revenue growth has regained momentum, and margin expansion now seems sustainable,” Motilal Oswal analysts added, noting that earnings could rise 13-15 per cent over the medium term, supporting a potential re-rating of the stock. The brokerage reiterated its ‘Buy’ rating and assigned a target price of ₹6,650, valuing LTIM at 31 times June 2027 estimated earnings per share (EPS).

 

Choice Institutional Equities also upgraded its stance, assigning an ‘Add’ rating with a target price of ₹5,800, up from ₹5,360. The brokerage expects revenue, Ebit, and PAT to grow at a compound annual growth rate (CAGR) of 11 per cent, 16 per cent, and 18 per cent over FY25-28, on the back of strong total contract value of large deals signed in the first half and productivity gains from cost optimisation programmes.

 

Emkay highlighted that revenue growth was broad-based across verticals, led by Consumer, Healthcare, Life Sciences, Public Services, and Manufacturing. Deal wins remained robust, with large deals across all five verticals totaling $1.59 billion, and a book-to-bill ratio of approximately 1.3, marking the fourth consecutive quarter with order intake exceeding USD1.5 billion. Emkay maintained an ‘Add’ rating, raising its target price to ₹6,200, reflecting a 19 per cent increase based on September 2027 estimated EPS. 

 

Nuvama, meanwhile, described the results as a “spotless quarter with solid performance on revenue, margins, and deal-wins,” noting that LTIM finally appears to be turning the corner. The brokerage upgraded FY26/FY27 EPS by approximately 4 per cent on higher margins and maintained a ‘Buy’ rating with a target price of ₹6,900, using a 30x forward PE on FY27-28 estimates.

 

Brokerages agreed that the quarter was notable for its broad-based revenue growth, margin expansion aided by the Fit4Future programme and currency tailwinds, and strong deal wins that support sustained growth into FY27. 

 

Analysts view the quarter as a turning point for LTIMindtree, with improving revenue visibility, expanding margins, and strong deal wins creating a bullish case for medium-term growth. As Motilal Oswal concluded, the company’s “capabilities in data engineering and ERP modernisation” position it well to deliver double-digit growth and earnings expansion over the next several quarters.