LTIMindtree: New year, new plan – but will it work?
But things are set to improve in FY26, backed by CEO-designate Venugopal Lambu's three strategic initiatives. These are improving overall sales effectiveness and addressing client expectations; revamping large deal strategy to focus on multi-service, multi-delivery, and multi-geography models; and driving agility by optimising costs.
New initiatives are expected to yield results from Q1FY26. The management expects Q1 to be a growth quarter with sequential margin improvement. In Q4FY25, sequential constant currency (CC) revenue slid 0.6% due to a sharp decline in the healthcare vertical, below consensus estimate of 0.3% growth. Ebit margin was flat sequentially at 13.8% as headwinds from employee costs were offset by lower other expenses.
Simply put, the new plan aims to maximize revenues and improve profitability. But a turbulent global backdrop may complicate the expected progress. Note that LTIMindtree fetches a large part of revenue from North America, where growth may be hit by reduced discretionary IT spending and slower contract renewals amid tariff-led ambiguity.
Also Read:
Big Four of Indian IT lose market share; HCL Tech's outlook offers little relief
'We believe the new management has their task cut out, and the added macro uncertainty pushes back the prospect of a double-digit growth rate as well as normalized Ebit margins beyond FY27," said Motilal Oswal Financial Service report on 23 April. Further, the management has not provided a tighter guidance range or timeline, which makes the margin expansion trajectory a tad vague, added the report.
True, order inflows provide growth visibility for FY26 to some extent. Order inflow in FY25 was robust at $6 billion, this was driven by a shift from discretionary projects to long-term, efficiency-focused deals. Q4FY25 alone saw new orders worth $1.6 billion, marking a second consecutive quarter of above $1.5 billion.
Also Read:
Attrition costs are catching up with IT companies
Some large deals are in the pipeline in the retail segment which LTIMindtree expects to close in Q1FY26. The management is optimistic about the order book in FY26 being higher than FY25. Still, the problem is that akin to previous quarters, deals into revenue conversion could be slow due to macroeconomic uncertainties. Plus, clients would remain focused on cost savings, vendor consolidation, and AI-led modernization.
LTIMindtree's shares have declined 4% in the past one year and trade at a FY26 price-to-earnings multiple of 26x, a premium to tier-1 peers. This valuation limits upside potential unless the new strategy gives impressive results.
Also Read:
IT stocks plunge as analysts have doubts about a growth rebound
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
29 minutes ago
- Mint
Buy or sell: Vaishali Parekh recommends three stocks to buy today — 28 July 2025
Buy or sell stocks: The week from 28 July to 01 August 2025 is packed with key economic events across the United States, India, and China, which could significantly influence global market sentiments, including the Indian stock market. In the US, attention will be on the US Federal Reserve's FOMC rate decision scheduled for 30 July, which could shape expectations around interest rate policy amidst persistent inflation concerns. The GDP Annualised QoQ and ADP Employment Change data will also be released on the same day, offering a glimpse into the economic growth trajectory and private sector hiring trends. On 31 July, the Initial Jobless Claims report will provide further clarity on the labour market's health. The week will culminate on 01 August with a series of important US releases, including Nonfarm Payrolls, ISM Manufacturing PMI, S&P Global US Manufacturing PMI, and the Unemployment Rate—all of which will collectively paint a comprehensive picture of employment dynamics and manufacturing sector performance. Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment has weakened as the Nifty 50 index has slipped below the 50-DEMA support of 24,900. The key benchmark index may try to test the 24,700 to 24,650 levels. However, the next crucial support for the 50-stock index is 24,500. On the upper side, 25,050 may act as a critical hurdle. Speaking on the outlook of the Nifty 50 today, Vaishali Parekh said, "The Nifty 50 index witnessed heavy profit booking in the last two sessions from the crucial hurdle of 25,050 zone and has slipped below the important 50-DEMA zone at 24,950 level to weaken the bias having next near-term support visible near 24,670-24,750 zone and the crucial important support positioned near the 24,500 level. The index has arrived at the base of the ascending channel pattern on the daily chart at the 24,800 zone, and a revival from the current rate will improve the bias once again if it decisively breaches above the 25,000 zone in the coming sessions." "The Bank Nifty index continued with the slide with a weak candle indication on the daily chart, and once again is on the way to retest the important 50-DEMA zone near the 56,000 level, which is the crucial support. The index needs to sustain the 50-DEMA zone to keep the bias intact; otherwise, it can trigger a fresh downward slide in the coming sessions. At the same time, on the upside, Parekh added that the tough resistance barrier near the 57,300 zone needs to be breached decisively to expect fresh upward movement and strengthen the trend," Parekh added. Parekh said that the Nifty 50 index's support is 24,700, while the resistance is 25,000. The BankNifty's daily range would be 56,000 to 57,000. Regarding stocks to buy today, Vaishali Parekh recommended these three buy-or-sell stocks: Lupin, Bodal Chemicals, and Anupam Rasayan India. 1] Bodal Chemicals: Buy at ₹ 74.40, Target ₹ 78, Stop Loss ₹ 72; 2] Lupin: Buy at ₹ 1952, Target ₹ 2050, Stop Loss ₹ 1920; and 3] Anupam Rasayan India: Buy at ₹ 1145, Target ₹ 1180, Stop Loss ₹ 1120. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
&w=3840&q=100)
First Post
29 minutes ago
- First Post
‘Easy as I settled India-Pak': Trump claims ended Thailand-Cambodia clash using trade pressure
Trump has once again claimed credit for helping end hostilities between India and Pakistan, this time while discussing rising tensions between Thailand and Cambodia. Drawing a comparison, Trump said he used trade pressure to de-escalate both situations read more US President Donald Trump on Sunday once again reiterated his claim of helping broker a ceasefire between India and Pakistan by using trade pressure—this time while drawing a parallel with the ongoing tensions between Thailand and Cambodia. Speaking about Southeast Asia, Trump said the United States maintains strong trade ties with both Thailand and Cambodia. He claimed he personally called the prime ministers of both countries and warned them that no trade deal would move forward unless they de-escalated their conflict. STORY CONTINUES BELOW THIS AD 'We do a lot of trade with Thailand and Cambodia. Yet I'm reading that they're killing each other,' Trump said. 'I say this should be an easy one for me because I settled India and Pakistan. I called the Prime Ministers of each (Thailand and Cambodia) and I said, 'We're not going to make a trade deal unless you settle the war.' By the time I got off the phone, I think they want to settle now.' #WATCH | US President Donald Trump says, "We do a lot of trade with Thailand and Cambodia. Yet I'm reading that they're killing each other... I say this should be an easy one for me because I settled India and Pakistan... I called the Prime Ministers of each (Thailand and… — ANI (@ANI) July 27, 2025 He went on to reference the India-Pakistan standoff, saying 'India and Pakistan were really getting ready to go at it. So getting those things settled—and if I can use trade to do that—then it's my honour.' Trump's constant claims of de-escalating the conflict Trump has made similar claims before, crediting himself for de-escalating the India-Pakistan conflict by instructing his administration to cancel all trade deals with both nations. He believes that pressure forced both sides to back down. 'We did some great work—India and Pakistan. That was close to being nuclear. We handled it. We did a lot,' Trump had told reporters earlier at the White House. 'I don't know if any president has done more.' Earlier, Trump also cited a similar approach in other global flashpoints. 'Serbia and Kosovo were going to go at it. I said, 'You go at it, there's no trade with the United States.' That's what happened with India and Pakistan. I told (Treasury Secretary) Scott (Bessent) and (Commerce Secretary) Howard (Lutnick), 'Cancel all deals with India and Pakistan. They're not trading with us while they're at war.'' STORY CONTINUES BELOW THIS AD However, India has consistently rejected Trump's assertions. According to Indian officials, the ceasefire agreement reached on May 10—after four days of intense cross-border drone and missile strikes—was the result of direct military-to-military communication between the Directors General of Military Operations (DGMOs) of both nations. Officials also clarified that the dialogue was initiated at Pakistan's request. In a recent phone conversation with Trump, Prime Minister Narendra Modi reiterated India's long-standing position that all matters with Pakistan are strictly bilateral and that New Delhi does not and will never accept third-party mediation.
Time of India
an hour ago
- Time of India
Government identifies key sectors to attract foreign investors
NEW DELHI: Amid signals of companies holding back on investment decisions due to the global uncertainty, govt and Invest India have identified Electronics System Design and Manufacturing, non-leather footwear, chemicals, medical devices, toys and EVs as sectors to court global investors for stepping up foreign direct investment (FDI) inflows. In recent months, net FDI inflows have been in focus as international investors are disinvesting in their existing ventures, largely through IPOs, while Indian companies have also stepped up global investments, resulting in outflows. During April-May, the latest period for which data is available, net FDI was unchanged at $3.9 billion, although gross inflows rose from $15.1 billion to $15.9 billion. In 2024-25, net inflows were estimated at $949 million as against $10 billion in the previous year. Govt is looking to increase gross inflows by focusing on facilitation. "We are focusing on our requirements by systematically identifying the value chains where companies can invest," a senior official said. While the new electronics components scheme has seen a lot of traction, as India seeks to build a resilient supply chain and reduce dependence on China, govt is also banking on a shift away from China as companies diversify their production ecosystem. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Undo In sectors such mobile phones, the production linked incentive scheme has seen the likes of Foxconn invest heavily in India along with their vendor base. Besides, officials said, in segments such as air conditioners too, there was increased focus on manufacturing compressors, motors and copper tubes in India, driven by incentives. The PLI scheme had also helped pharma and medical devices production, the official said. "We are discussing how we can take this forward," the source added. While companies such as Vinfast have entered India to tap into the growing demand for electric vehicles, discussions around lowering import duty through the trade agreements has resulted in some other companies holding back on plans to invest in manufacturing facilities in India. This is despite a special scheme launched by govt that allows imports at subsidised rates for three years, based on a commitment to make in India subsequently. Chinese companies such as BYD were also keen to set up a plant in India but govt has imposed checks on these investments. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
