India's LTIMindtree aiming for near double-digit revenue growth by end of FY26
'If we can hit a run rate which brings us nearer to the double digit of year-on-year growth … (FY26) will definitely end up becoming better than FY25,' CEO Venugopal Lambu told Reuters.
Nachiket Deshpande, President of LTIMindtree, told analysts on Friday that after the formation of a global large deal team, the company is winning more deals and adding to the pipeline. 'We're seeing the (deal) momentum continue at least in the next few quarters,' Deshpande said.
On Thursday, the firm reported first quarter consolidated revenue of 98.41 billion rupees ($1.14 billion), missing estimates marginally as cautious spending by clients slowed growth in its key North America market to the lowest in over a year.
Stubborn inflation, subdued demand, and uncertainty around U.S. trade policies are prompting clients to delay discretionary tech spending, clouding prospects of a recovery in India's $283 billion IT sector.
The company's operating margin in the first quarter contracted by 70 basis points on-year, but expanded 50 basis points sequentially.
Lambu on Friday said the company was also aiming to expand its operating margins by 100 basis points by the end of fiscal 2026.
LTIMindtree's shares fell as much as 2.4% on Friday before closing 1.36% lower.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
6 hours ago
- Express Tribune
Google granted tax exemption
Sources said tax authorities assured the company that 'Google is not the target of the Digital Presence Proceeds Tax Act' and that the legislation is designed to address only those with significant digital presence but no physical or registered presence in Pakistan. photo: REUTERS Listen to article Pakistan has assured US-based Google that it will be exempt from the newly imposed 5% digital tax, and parts of the company's income will be taxed at even two-thirds reduced rates, further reducing the country's earnings from foreign firms operating locally. The clarification, given by the Federal Board of Revenue (FBR) to the tech giant, has raised questions about the effectiveness of the new tax law, indicating that the government may have not fully considered the implications before enacting the Digital Presence Proceeds Act 2025 last month. The government enacted the Digital Presence Proceeds Act in June to enhance tax collection from offshore companies with significant digital presence that were not paying taxes on their earnings. Sources said tax authorities assured the company that "Google is not the target of the Digital Presence Proceeds Tax Act" and that the legislation is designed to address only those with significant digital presence but no physical or registered presence in Pakistan. This assurance was sent electronically to Kyle Gardner, Google's representative for government affairs in South Asia. Google has a significant business presence in Pakistan and provides services for online advertising, search engines, cloud computing, communication, and entertainment. It is also the single largest contributor of digital service tax payments. In contrast, firms like Meta, Amazon, Microsoft, and Netflix contribute little to the over Rs1 billion in total income tax collected from tech giants, according to FBR officials. The tax authorities assured Google that since it has a branch office in Pakistan, it will not be liable to pay the 5% tax on its income due to its legal status as "a tax resident under relevant tax laws of Pakistan." FBR spokesman Dr Najeeb Memon was not available for comments. The new law states that it will not apply to any payment for digitally ordered goods where such payment is effectively connected with a branch office of the foreign vendor in Pakistan, and the goods are supplied from within Pakistan. It also excludes digitally delivered services received in Pakistan and rendered through a branch office of the foreign vendor. "Since you are operating through a registered branch, your operations fall squarely within this exemption. Similarly, the digital services tax provisions of the income tax law do not apply to tax residents of Pakistan," stated the FBR communication with Google. The enactment of the Digital Presence Proceeds Act had created ripples in Pakistan, particularly among YouTube users. Before the new budget, Google was paying 10% income tax under Section 152 of the Income Tax Ordinance, which the government increased to 15%. However, surprisingly, the government has also shown a path for Google to pay only 5% income tax instead of 15%. Authorities further stated that even if any of Google's operations are conducted from outside Pakistan, the applicable rate under the Digital Services Tax and the Digital Presence Proceeds Act has been reduced to 5% instead of the 15% rate the company had perceived. According to the FBR, if a person is subject to the Digital Presence Proceeds Tax, then tax under Section 152 of the Income Tax Ordinance shall not be deducted on the same transaction. "This safeguards Google against any double taxation. In fact, Google's applicable tax rate has now been reduced from 10% to 5%, given that the Digital Proceeds Act imposes a 5% rate compared to the 15% withholding tax rate under the Income Tax Ordinance," the government assured Google. Going a step further, the government has offered Google full income tax exemption if it shifts its local branch office to a Special Technology Zone (STZ). Under Clause 123EA of the Second Schedule of the Income Tax Ordinance, 2001, profits and gains derived by zone enterprises under the STZ Authority Act are fully exempt from income tax until 2035. The law was intended to tax digitally delivered services provided over the internet or electronic networks, where delivery is automated with minimal or no human involvement. These include services such as music, audio and video streaming, cloud computing, software, telemedicine, e-learning, online banking, architecture, research, consultancy, and digital accounting services.
Business Recorder
7 hours ago
- Business Recorder
Pakistan extends airspace restrictions on Indian-registered aircraft
ISLAMABAD: Pakistan has extended its airspace restrictions on all Indian-registered aircraft, including both civilian and military planes, as well as those owned or leased by Indian entities, the Pakistan Airports Authority announced on Friday. According to the notification, aircraft operated by Indian airlines will not be allowed to use Pakistani airspace. The restriction, effective from 3:20 PM on July 18, will remain in force until 4:59 AM on August 24, 2025 (Pakistan Standard Time). The move comes amid heightened diplomatic tensions between the two countries following Pakistan's repeated accusations of Indian involvement in state-sponsored terrorism, including cross-border subversion and recent violent incidents inside Pakistan. The airspace ban was initially imposed as part of broader national security measures and remains a signal of Islamabad's protest against New Delhi's alleged hostile actions. Copyright Business Recorder, 2025
Express Tribune
14 hours ago
- Express Tribune
Pakistan extends airspace ban for Indian aircraft till Aug 23
An Air India Airbus A320neo plane takes off in Colomiers near Toulouse, France, December 13, 2017. Photo: Reuters/ File Listen to article Pakistan has extended the suspension of its airspace for Indian aircraft for another month, according to a fresh notification issued by the Pakistan Airport Authority (PAA) on Thursday. The airspace closure—originally imposed on April 23 amid heightened tensions with India—will now remain in effect until August 23, as per the new Notice to Airmen (NOTAM) issued by the authority. According to the notification, all aircraft operated by Indian airlines or registered in India remain barred from using Pakistani airspace. The ban also covers Indian-owned or leased civil and military aircraft. Also Read: Pakistan, US aim to boost trade ties with focus on IT, minerals, and agriculture The ban was first enforced following a flare-up between the two nuclear-armed neighbours earlier this year. Although a ceasefire was brokered through US mediation, the airspace restrictions have remained in place. Last month, the PAA had similarly extended the ban until July 23, reaffirming its continued enforcement despite diplomatic backchannels. The suspension has significantly impacted Indian carriers' westbound routes, compelling them to adopt longer flight paths around Pakistan—a development that has led to increased fuel costs and travel times.
