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    LTIMindtree

    LTIMGood
    Information Technology·19 Jan 2026
    Management Summary

    LTIMindtree delivered a solid Q3 in a seasonally weak quarter with 2.4% sequential growth and margin expansion. The company is approaching double-digit YoY growth with 6.1% in Q3. Top-5 client productivity headwinds are near completion with 4 of 5 clients having transitioned. Management is sunsetting Fit4Future and launching 'New Horizons' for balanced growth and cost discipline. Wage hikes starting Q4 for 50% of population with ~1% margin impact per quarter.

    Highlights

    8

    • Q3 revenue at USD 1,208 million, up 2.4% QoQ and 6.1% YoY in dollar terms

    • INR revenue at INR 10,781 crores, up 3.7% QoQ and 11.6% YoY

    • Operating EBIT margin expanded 20 bps QoQ to 16.1%

    • PAT grew 29% YoY (adjusted); one-time labor code impact of INR 590 crores

    • Order inflow at USD 1.7 billion, up 6.4% QoQ

    • Fit4Future delivered 230 bps margin improvement over 9 months

    • Headcount at 87,958 with net additions of 1,511 including 1,736 freshers

    • Attrition declined to 13.8% from 14.2%; OCF/PAT at 129.9%

    Key financials

    Metrics

    11

    Periods

    2

    Headline

    10
    • Revenue (USD)
      1,208 Mn
      YoY+6.1%QoQ+2.4%
    • Revenue (INR)
      ₹10,781 Cr
      YoY+11.6%QoQ+3.7%
    • EBIT Margin
      16.1%
    • Adjusted PAT
      ₹1,401 Cr
      YoY+29.0%QoQ+1.5%
    • Order Inflow
      1,700 Mn
      QoQ+6.4%

    TTM

    1
    • Attrition
      13.8%

    Segment breakdown

    Vertical Growth (QoQ USD)
    120% Consumer Business-70% BFSI9.4% Mfg & Resources0% TMC9.9% Healthcare/Public
    Geography Growth (QoQ)
    40% Americas3.4% Europe14.1% RoW
    List

    Guidance & targets

    3
    CategoryTargetPriority
    Growth
    Q4 FY26 YoY Growth
    Near double-digit
    		Medium
    Margins
    FY26 EBIT Margin
    Better than FY25
    		High
    Costs
    Wage Hike Impact
    ~1% margin impact per quarter in Q4 and Q1
    		High

    Risks & concerns

    6
    RiskSeverity

    Top-5 client concentration decline due to AI productivity journeys

    4 of 5 top clients have completed productivity transition; last one expected Q4 bottoming. No vendor consolidation risk. — Both acknowledged

    medium

    Wage hike impact of ~1% margin per quarter in Q4 and Q1

    50% population getting hikes in Q4, remainder in Q1 FY27; operational efficiencies to partially offset — Management acknowledged

    medium

    One-time labor code impact of INR 590 crores affecting reported PAT

    Non-recurring charge; adjusted PAT at INR 1,401 crores showing healthy 29% YoY growth — Management acknowledged

    low

    AI-driven productivity gains across client base may extend to broader accounts

    Management says top-20 is broader base with puts and takes; impact most concentrated in top-5 — Both acknowledged

    medium

    Areas of Evasion(2)

    • Pass-through revenue quantum
    • SG&A one-off reversal quantum

    Q&A highlights

    3

    “just about one client that is left now, that needs to pass through that phase... next quarter, I expect one out of that five account will eventually bottom out”

    Top-5 decline has been a major investor concern; near-complete resolution signals growth inflection ahead

    asked by Vibhor Singhal

    1 min read5 chapters

    Detailed Narrative

    01

    Solid Q3 Performance in Seasonally Weak Quarter

    LTIMindtree delivered 2.4% QoQ growth to USD 1,208 million despite furloughs and fewer workdays. YoY growth accelerated to 6.1% from 4.5% in Q2. INR revenue at INR 10,781 crores grew 11.6% YoY. Manufacturing & Resources (9.4%) and Healthcare/Public Services (9.9%) led growth, while BFSI declined 0.7%.

    02

    Margin Expansion and Fit4Future Success

    EBIT margins expanded 20 bps to 16.1% driven by Fit4Future efficiency program which delivered cumulative 230 bps improvement over 9 months. SG&A declined significantly with management targeting 11-11.5% range. Fit4Future being replaced by 'New Horizons' for balanced growth and cost focus. Wage hikes starting Q4 with ~1% margin impact per quarter.

    03

    Deal Momentum and Client Positioning

    Order inflow at USD 1.7 billion, up 6.4% QoQ. Key wins include USD 155 million insurance deal, global financial institution strategic partnership. Positioned as one of five major partners at top global banks. Deal mix shifting to strategic renewals with wallet share capture from competitors. Average deal tenure of 3-5 years.

    04

    Top-5 Client Productivity Headwind Nearing End

    4 of 5 top clients have completed AI productivity transitions. Last client expected to bottom in Q4. Management not losing wallet share but helping clients through productivity journey proactively. Growing sequentially in top tech account post-transition. BFS top accounts positioned as prime supplier.

    05

    AI Strategy and FY27 Outlook

    Over 50% employees at intermediate/advanced AI skills. BlueVerse platform being deployed across clients for agentic AI. Lakshya 2031 strategy being defined. FY27 aspiration is industry-leading growth supported by improving deal momentum. 'New Horizons' enterprise transformation program launching for medium-to-long-term growth and efficiency.

    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.