Goldman Sachs has downgraded LTIMindtree to ‘Neutral’ from ‘Buy’ and sharply reduced the stock’s target price to ₹4,500 from ₹6,570. The brokerage firm has also lowered its FY26 revenue growth forecast for the overall Indian IT services sector to 4% YoY in constant currency terms—a sharp 230 bps cut from its earlier estimates. This new projection is barely higher than the 3.5% growth forecast for FY25.
The cut comes amid growing macroeconomic uncertainty, particularly in the United States, which accounts for about 60% of Indian IT revenues. Goldman Sachs’ U.S. economists have revised their 2025 GDP growth outlook for the U.S. to 1.7% from 2.4% and raised the 12-month recession probability from 15% to 20%, citing potential adverse effects of new tariff measures.
While LTIMindtree is still seen as a quality player in the mid-tier IT space, Goldman Sachs believes the downgrade reflects both the elevated valuations and a weaker near-term revenue outlook.
