Earnings Outlook
LTIMindtree sales growth seen subdued QoQ, margin seen up
This story was originally published at 18:58 IST on 15 July 2025
Register to read our real-time news.Informist, Tuesday, Jul. 15, 2025
By Rajesh Gajra
NEW DELHI – Stable performance in select verticals such as banking, financial services, and insurance, along with deal ramp-ups and cross-currency tailwinds, have likely steadied LTIMindtree Ltd.'s top line in the June quarter. However, sequential growth is expected to remain subdued at under 1%. Operating leverage, including cost cutting measures, would have expanded the operating margin of the company. The bottom line growth will largely track the operating profit performance.
The technology consultancy and digital solutions subsidiary of engineering major Larsen and Toubro Ltd. will likely report a consolidated net profit of INR 11.91 billion, up 5.5% sequentially, according to an average of estimates by 17 brokerage firms. The consolidated revenue from operations is seen increasing slightly by 0.7% on quarter to INR 98.42 billion. From the year-ago quarter, the estimated net profit is up 5% while estimated revenue is up 7.7%.
The net profit estimates range from a low of INR 11.15 billion by Antique Stock Broking to a high of INR 12.46 billion by Kotak Institutional Equities. Among revenue estimates, the lowest is INR 96.90 billion by Indsec Securities and Finance and the highest is INR 100.06 billion by brokerage Nirmal Bang Equities.
In US dollar terms, LTIMindtree's June quarter revenue, according to an average of estimates by 10 brokerages, is expected to come in at $1.14 billion, marginally more than $1.13 billion in the previous quarter. The company's earnings before interest and tax margin is projected to improve to 14.26% from 13.8% in the March quarter, according to an average of estimates by 10 brokerages.
In the March quarter, LTIMindtree's consolidated net profit had increased 3.9% on quarter to INR 11.29 billion. Revenue from operations had risen 1.1% sequentially to INR 97.72 billion while revenue in constant currency terms had declined 0.7%.
According to a preview report by Kotak Securities, LTIMindtree's revenue is expected to rise around 1% sequentially in the June quarter, supported by growth in the financial services vertical. Steady revenue from top two clients of the company will aid its top-line performance.
Motilal Oswal Financial Services said deal ramp-ups pass-through elements, and cross currency tailwinds will prop up LTIMindtree's revenue for the June quarter. Strong traction in Banking, Financial Services, and Insurance and consumer verticals will aid the company's revenue, along with cross currency gains, IDBI Capital Market Services said.
Kotak Securities expects LTIMindtree's total contract value to rise by 20% to nearly $1.7 billion, driven by a recently signed large deal. Deal wins for the quarter are likely to fall within the $1.5 billion–$1.6 billion range.
The earnings before interest and tax margin of the company may expand 60 basis points to 14.4%, according to Motilal Oswal Financial. The brokerage said the company will face visa-related headwinds but these will offset by operating leverage. IDBI Capital said LTIMindtree's margin growth will be supported by better utilisation and operational efficiency.
The company will announce its financial results for the June quarter Thursday. Following the announcement, investors will watch for management commentary on the impact of reciprocal tariff by the US on manufacturing, health, and retail businesses, Kotak Securities said. The brokerage said investors will also focus on the health of spending by top two clients of the company, particularly since the "largest client pushed for enhanced productivity pass back while the second largest client planned to insource." Kotak Securities did not name these top two clients of LTIMindtree though.
As per IDBI Capital, investors would watch for management commentary on deal pipeline and its conversion, discretionary spend revival, and outlook on banking and financial services vertical.
LTIMindtree has 14 buy recommendations from analysts at an average target price of INR 5,653, six hold recommendations at an average target price of INR 5,088, and one sell call at a target price of INR 4,910.
On Tuesday, shares of LTIMindtree ended up 1.8% at INR 5,250.50 on the National Stock Exchange. The shares have risen 16% since the closing price of INR 4,536.70 on Apr. 23 when the company announced its March quarter earnings.
Following are the June quarter consolidated earnings estimates for LTIMindtree based on reports from 17 brokerage firms in descending order of estimate of net profit:
| Brokerage | Revenue (INR mln) | Net profit (INR mln) | Revenue ($ mln) | EBIT margin (%) |
| Kotak Institutional Equities | 98,566 | 12,457 | 1,151 | 14.4 |
| JM Financial Institutional Securities Pvt Ltd | 98,490 | 12,356 | -- | -- |
| IDBI Capital Market Services Ltd | 98,868 | 12,260 | 1,155 | 14.3 |
| Nuvama Wealth Management Ltd | 98,468 | 12,187 | 1,150 | 14.3 |
| ICICI Securities Ltd | 98,028 | 12,043 | 1,148 | 14.2 |
| Motilal Oswal Financial Services Ltd | 99,000 | 12,000 | -- | -- |
| HSBC Global Research | 98,219 | 11,980 | 1,148 | 14.2 |
| HDFC Securities Ltd | 98,980 | 11,950 | 1,151 | 14.4 |
| Emkay Global Financial Services Ltd | 98,653 | 11,864 | -- | -- |
| Anand Rathi Share and Stock Brokers Ltd | 98,143 | 11,850 | -- | 14.6 |
| Indsec Securities and Finance Ltd | 96,900 | 11,800 | 1,100 | 14 |
| Prabhudas Lilladher Pvt Ltd | 98,300 | 11,800 | 1,148 | 14.3 |
| Sharekhan Ltd | 98,610 | 11,800 | -- | -- |
| Elara Securities (India) Pvt Ltd | 98,250 | 11,777 | 1,148 | |
| Dolat Capital Market Pvt Ltd | 97,807 | 11,667 | -- | -- |
| Nirmal Bang Equities Pvt Ltd | 100,057 | 11,480 | 1,144 | 13.9 |
| Antique Stock Broking Ltd | 97,752 | 11,148 | -- | -- |
| Average | 98,417 | 11,907 | 1,144 | 14.26 |
End
US$1 = INR 85.81
Edited by Subhojit Sarkar
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