LTIMindtree’s strategic reboot under new CEO Venu Lambu appears to be bearing fruit, with the company delivering a broadly in-line Q1FY26 performance and promising operational improvement going forward. Nuvama Institutional Equities has reaffirmed its bullish stance on the stock, raising its target price to ₹6,200 from ₹5,200, implying an upside of over 20% from the current market price of ₹5,169.
In its Q1FY26 report, LTIMindtree posted revenue of USD 1,153 million, up 0.8% QoQ and 4.4% YoY in constant currency terms, aligning with consensus expectations. The growth was broad-based across verticals like consumer, healthcare, BFSI, and hi-tech. EBIT margin expanded by 50 basis points QoQ to 14.3%, aided by improved operational efficiency under its ‘Fit for Future’ program, though partially offset by higher visa and travel costs.
Order inflow was robust at USD 1.63 billion, up 16.4% YoY, including the company’s largest-ever deal, which is already under execution and expected to ramp up through Q2FY26. Nuvama noted that such deal traction is a sign of LTIM’s increasing competitiveness in the large-deal space, something the company had struggled with in previous quarters.
Nuvama’s optimism is grounded in a fundamental shift it sees under the leadership of CEO Venu Lambu. The brokerage highlighted LTIM’s internal restructuring, strategic use of generative AI (including 62 internal AI initiatives across nine business processes), and operational tweaks like rising utilization (up to 88.1% in Q1 from 85.8% in Q4) as key positives. The management also plans to recalibrate utilization to 86–87% to ensure delivery flexibility for upcoming demand.
The brokerage believes that LTIM now offers a ‘growth at reasonable valuation’ play, sitting attractively between high-growth Tier-2 and value Tier-1 IT peers. The valuation multiple has been increased to 30x FY27E EPS, from 25x earlier, as confidence builds in a sustainable turnaround story.
While challenges remain—including macro uncertainty and talent cost pressures—Nuvama views the improving fundamentals, execution discipline, and strategic alignment as signals of a strong comeback in both growth and margins. The firm maintains its ‘BUY’ rating, projecting mid-teen earnings growth and rising investor interest in the quarters ahead.
