HSBC has reaffirmed its ‘Buy’ rating on LTIMindtree, raising the target price to ₹6,000 from ₹5,900, following what it described as a broadly in-line Q1FY26 performance. The brokerage acknowledged continued improvement in LTIMindtree’s core fundamentals and expressed strong optimism on its medium- to long-term growth prospects.
The company’s Q1FY26 performance showed revenue growth of 0.8% in constant currency (CC) and EBIT margin expansion of 50 basis points to 14.3%, helped by operational efficiencies and margin initiatives under the new CEO Venu Lambu. Order inflows rose to USD 1.63 billion, up 1.9% QoQ and 16.4% YoY, indicating positive client sentiment and strong execution capability.
HSBC emphasized that LTIMindtree is structurally well-positioned for growth, especially as it continues to realign under a new leadership strategy. The company recently launched initiatives such as BlueVerse and Agentic AI ecosystem, further enhancing its capabilities in digital transformation and automation.
What particularly stands out, according to HSBC, is LTIMindtree’s potential to deliver growth that could be nearly double that of mega-cap Indian IT firms over the medium term, while still trading at valuations that remain attractive relative to its peers. The brokerage sees this risk-reward as compelling for investors looking for quality growth names in the IT services sector.
