LTIMindtree posts steady Q1 with boost in Europe business

Mint

17-07-2025

Bengaluru: LTIMindtree Ltd began the new fiscal year on solid footing, reporting revenue growth in line with expectations, led largely by clients in Europe and the retail segment.
India's sixth-largest IT services company on Thursday reported $1.15 billion in revenue for the June-ended quarter (Q1FY26), a 1.97% sequential rise. This matched the consensus estimate from a Bloomberg poll of 31 analysts.
Nearly three-fourths of its incremental revenue of $22 million came from clients based in Europe, which contributed $170 million in revenue. Retailers, grouped under the 'consumer' vertical, contributed the most to incremental revenue, with the segment bringing in $168 million, or 14.6% of overall revenue.
Management expressed optimism despite the challenging macroeconomic environment.
'While the macroeconomic environment remains challenging, I'm confident that our disciplined execution and unwavering client focus will continue to drive our performance,' chief executive Venu Lambu said in the company's earnings release.
The commentary echoed that of Tech Mahindra, where CEO Mohit Joshi had said 'the sentiment is still not conducive to significant discretionary investments' in sectors affected by tariffs.
LTIMindtree's performance stood out amid a weak demand environment for India's top IT exporters.
Wipro reported revenue of $2.59 billion for the April-June quarter, down 0.35% sequentially and 1.5% year-on-year. Its performance was broadly in line with the muted sequential growth posted by peers—Tata Consultancy Services ($7.42 billion, down 0.59%), HCL Technologies ($3.55 billion, up 1.34%), and Tech Mahindra ($1.56 billion, up 0.97%).
Infosys Ltd, India's second-largest IT outsourcer, will report its June-quarter results on 23 July.
Mint reported in May that LTIMindtree had bagged its largest deal to date—a seven-year, $450 million contract from Archer-Daniels-Midland Co (ADM), a Chicago-based food processing and commodities trading firm.
Two analysts who did not wish to be identified said the revenue bump in the June quarter likely stemmed from that large deal.
'It's most likely ADM that might have contributed to the increase in revenue,' said a Mumbai-based analyst on condition of anonymity.
Mint could not ascertain whether revenue from LTIMindtree's largest client contributed to the quarterly growth. The company did not hold a press conference following its results.
For Venu Lambu, who took over as chief executive on 31 May, the ADM deal is a shot in the arm and is expected to further support revenue growth. Analysts had anticipated the win would add to the company's total contract value. LTIMindtree does not disclose new order wins in its financials.
The company also posted a 12.6% sequential jump in net profit to $147 million, aided by lower tax expenses. Operating margins stood at 14.3%, up 50 basis points from the previous quarter.
Tech Mahindra reported 11.1% operating margins, a 60-basis-point sequential improvement.
Headcount fell by 418 to 83,889 during the quarter, tracking a similar trend at Tech Mahindra, which reduced its workforce by 214 to 148,517.
LTIMindtree's results set the tone for India's mid-tier IT firms with annual revenues between $1 billion and $5 billion. These companies not only grew faster than the top five IT majors last year, but also added more headcount.
Analysts expect this momentum to continue, with mid-sized firms likely to gain market share from their larger peers, thanks to more agile teams and fewer legacy operations, according to a Mint report dated 7 May.