LTIMindtree — Q4 FY25 earnings call

Call held 23 Apr 2025

Management summary

FY25 was a mixed year for LTIMindtree with 5% CC growth but 120 bps margin decline. Growth was front-loaded with H2 slowdown. CEO transition from Debashis Chatterjee to Venu Lambu. The newly launched Fit4Future program targets margin recovery through revenue maximization, pyramid optimization, and operational efficiency. Management expects growth and margin improvement from Q1 FY26.

Highlights

  • FY25 revenue at USD 4.5 billion, up 4.8% YoY in USD and 5% in CC

  • Q4 revenue at USD 1.13 billion, up 5.8% YoY but declined 0.7% QoQ

  • FY25 EBIT margin at 14.5%, down 120 bps from FY24's 15.7%

  • Q4 EBIT margin flat at 13.8%; PAT margin 11.5%

  • FY25 order inflow at USD 6 billion, up 6.1% YoY; Q4 inflow USD 1.6 billion

  • Headcount at 84,307; attrition stable at 14.4%

  • CEO transition: Venu Lambu taking over from Debashis Chatterjee

  • Fit4Future program launched for margin improvement from Q1 FY26

Concerns

  • FY25 margin declined 120 bps to 14.5% from 15.7%

Key financials

3 periods

Headline

  • Headcount
    84,307 employees
  • Cash & Investments
    ₹13,346 Cr

Q4

  • Revenue (USD)
    $1,130 Mn
    YoY +5.8% QoQ -0.7%
  • EBIT Margin
    13.8%

FY25

  • Revenue (USD)
    $4,500 Mn
    YoY +4.8%
  • EBIT Margin
    14.5%
  • PAT
    ₹4,602 Cr
    YoY +0.4%
  • Order Inflow
    $6,000 Mn
    YoY +6.1%
  • OCF/PAT
    98.8%

What they filed

Q1 FY27: revenue up 18.0%, net profit up 17.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue9,433 9,661 9,772 9,841 10,394 +10%10,781 +12%11,292 +16%11,608 +18%
EBITDA1,699 1,593 1,596 1,649 1,930 +14%2,003 +26%1,973 +24%2,061 +25%
Net profit1,252 1,087 1,129 1,255 1,381 +10%960 −12%1,387 +23%1,469 +17%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • FY25 Vertical Performance
    — BFSI (36.1% of revenue)8.7% Consumer Business7.2% Manufacturing

Guidance & targets

Margins

  • FY26 EBIT Margin Margins · FY26 · High confidence Improvement from Q1 onwards

    From 14.5% FY25 today

    we expect our Fit4Future Program to help improve the margins from Q1 onwards

    — Venu Lambu

Risks & concerns

  • FY25 margin declined 120 bps to 14.5% from 15.7%

    high

    Fit4Future program launched to address; expects improvement from Q1 FY26

    Both acknowledged

  • H2 FY25 growth slowdown after strong H1

    medium

    Industry-wide phenomenon; new deals and ramp-ups expected to sustain FY26 momentum

    Management acknowledged

  • CEO transition risk

    low

    Smooth handover with Venu Lambu already involved in strategy

    Analyst downplayed

Areas of evasion (2)

  • Specific margin targets
  • Client-level details

Q&A highlights

3 direct
Fit4Future Program Launch Direct
Fit4Future should start yielding results through margin improvement from Q1 onwards

Three-pronged margin recovery: revenue maximization, pyramid optimization, operational efficiency

Asked by Multiple

CEO Transition Direct
Venu will continue to focus on driving growth and strategic planning

Smooth CEO transition with Venu Lambu bringing growth focus; DC staying as advisor

Asked by Multiple

H2 Growth Slowdown Factors Direct
robust revenue growth in the first half of the year, momentum slowed in the second half

Identifies key challenge - need to sustain growth momentum into FY26

Asked by Multiple

1 min read 3 chapters

Detailed narrative

FY25 Performance - Growth Without Profits

LTIMindtree closed FY25 with USD 4.5 billion revenue (5% CC growth) but PAT grew only 0.4% due to 120 bps margin contraction to 14.5%. Order inflow was healthy at USD 6 billion (6.1% growth). Strong cash generation with OCF/PAT at 98.8%. Cash position at INR 13,346 crores.

CEO Transition and Strategic Reset

Debashis Chatterjee stepping down with Venu Lambu taking over as CEO. Three-pronged Fit4Future program launched targeting revenue maximization, pyramid improvement, and operational efficiency including SG&A optimization and span of control improvements. Results expected from Q1 FY26.

Vertical and Deal Performance

Consumer business grew 8.7% YoY, Manufacturing 7.2%. BFSI moderate growth. High-tech flat. Q4 order inflow at USD 1.6 billion was second consecutive quarter above USD 1.5 billion. Headcount at 84,307 reflecting disciplined hiring.

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