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    LTIMindtree

    LTIMGood
    Information Technology·16 Oct 2025
    Management Summary

    LTIMindtree delivered a strong Q2 with broad-based growth across all verticals and significant margin expansion of 160 bps driven by the Fit4Future program. Revenue crossed INR 10,000 crores milestone. Management signaled continued growth momentum into H2 with EBIT margin expansion trajectory intact. Top-5 client productivity headwind acknowledged but balanced by portfolio diversification.

    Highlights

    8

    • Revenue at USD 1,180 million, up 2.3% QoQ in USD and 2.4% in CC

    • INR revenue crossed INR 10,000 crores for first time

    • EBIT margins expanded 160 bps QoQ to 15.9%, ahead of plan

    • Order inflow at USD 1.59 billion, up 22% YoY; 4th consecutive quarter above USD 1.5 billion

    • Second consecutive quarter of sequential growth across all verticals

    • Consumer business led with 9.1% QoQ growth; Healthcare 10.2% QoQ

    • Headcount at 86,447 with net additions; attrition declined to 14.2%

    • Fit4Future margin improvement program delivering significant results

    What Changed2

    vs Q2 FY26

    Guidance items3 → 2 (-1)Risks discussed4 → 2 (-2)
    Key financials

    Metrics

    6

    Periods

    2

    Headline

    5
    • Revenue (USD)
      1,180 Mn
      YoY+4.8%QoQ+2.3%
    • EBIT Margin
      15.9%
    • Order Inflow
      1,590 Mn
      YoY+22%
    • Headcount
      86,447 employees
    • OCF/PAT
      85.6%

    TTM

    1
    • Attrition
      14.2%

    Segment breakdown

    Vertical Growth QoQ
    9.1% Consumer10.2% Healthcare/Public1.7% Mfg & Resources20% BFSI10% TMC
    List

    Guidance & targets

    2
    CategoryTargetPriority
    Margins
    EBIT Margin Trajectory
    Continued expansion
    		High
    Growth
    H2 FY26 Growth
    Continued momentum
    		Medium

    Risks & concerns

    4
    RiskSeverity

    Top-5 client revenue decline due to AI productivity

    Large material accounts going through productivity journey; balanced by portfolio growth — Both acknowledged

    medium

    High-tech vertical margin pressure

    Some clients in tech embarked on productivity journey earlier affecting margins — Analyst acknowledged

    medium

    Areas of Evasion(2)

    • Specific EBIT guidance
    • Pass-through details

    Q&A highlights

    3

    “we will have to transition that phase and at the same time, whatever the revenue we should recover from other accounts”

    Explains ongoing headwind in largest accounts due to AI productivity journeys

    asked by Sandeep Shah

    1 min read4 chapters

    Detailed Narrative

    01

    Strong Q2 With Broad-Based Growth

    LTIMindtree delivered 2.3% QoQ revenue growth to USD 1,180 million with growth across all verticals for the second consecutive quarter. Consumer business (9.1%) and Healthcare (10.2%) led. INR revenue crossed the INR 10,000 crore milestone for the first time.

    02

    Significant Margin Expansion

    EBIT margins expanded 160 bps to 15.9%, ahead of plan, driven by 80 bps from margin improvement program. Fit4Future initiative continues to deliver efficiency gains across pyramid improvement and rate realization. Management confident of further expansion.

    03

    Deal Momentum Sustained

    Order inflow at USD 1.59 billion marked the fourth consecutive quarter above USD 1.5 billion, up 22% YoY. Deal quality improving with strategic renewals capturing wallet share from competitors.

    04

    AI Productivity Journey

    Top-5 clients going through AI productivity transitions causing short-term revenue headwind in those accounts. Management proactively helping clients through this journey while balancing portfolio growth. Recovery expected as transitions complete.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.