LTIMindtree shares fall nearly 2% following Q1 results — Should you buy, hold or sell? Know more
Shares of LTIMindtree traded lower by nearly 2% on Friday at around ₹5,100.50, despite the company delivering a strong set of Q1 FY26 numbers that beat expectations on several fronts. The stock slipped from its previous close of ₹5,194.50 as investors digested the results and weighed valuations after a recent run-up.
For the quarter ended June 30, 2025, LTIMindtree reported a 10.6% year-on-year (YoY) rise in net profit to ₹1,254.1 crore, from ₹1,133.8 crore a year ago. Sequentially, profit grew by about 11%.
Revenue from operations increased 7.6% YoY to ₹9,840.6 crore, and marginally by 0.7% over the March quarter. EBIT improved 4.5% QoQ to ₹1,406.5 crore, with EBIT margin expanding to 14.3% from 13.8%, supported by operational efficiencies and strategic initiatives like Fit4Future and AI-led offerings.
Order inflows were robust, rising to $1.63 billion, up 16.4% YoY and 1.9% QoQ, reflecting strong client confidence and a healthy deal pipeline. CEO & MD Venu Lambu called it a 'promising start to the year', citing improvements in growth, margins, and strategic execution. Notably, the company secured an AI-driven contract with a global agribusiness leader during the quarter.
On the employee front, the board approved issuing 67,252 shares under its Employee Stock Option Plan, aimed at rewarding and retaining talent. Should you buy, hold or sell LTIMindtree shares?
Brokerages remain upbeat on LTIMindtree's medium-term prospects despite the stock's muted reaction today. HSBC reaffirmed its 'Buy' rating , raising its target price to ₹6,000 from ₹5,900. It cited improved fundamentals, strong order wins, and leadership strategies that could help LTIMindtree outperform larger peers.
HSBC also highlighted the company's AI initiatives like BlueVerse and Agentic AI ecosystem, which enhance its digital transformation and automation capabilities.
While the stock faces short-term pressure after the results, analysts believe LTIMindtree's strategic focus on AI, operational efficiencies, and strong deal wins support its long-term growth outlook. Investors may consider staying invested, while awaiting further delivery in the coming quarters.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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