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Informist, Wednesday, Oct. 15, 2025

 

By Shakshi Jain

 

NEW DELHI – Information technology company LTIMindtree Ltd. is expected to report a sequential as well as a year-on-year growth in the top line and the bottom line for the September quarter, helped by operational efficiencies and ramp-up in large deals.

 

The consolidated bottom line of the company is expected to rise 2% sequentially as well as year on year to INR 12.78 billion for the reporting quarter, according to the average of estimates from 16 brokerages. The highest estimate for net profit is INR 13.10 billion by HSBC Securities and Capital Markets (India) Pvt. Ltd. and the lowest is INR 12.33 billion by YES Securities (India) Ltd.

 

The top line of the company is seen rising almost 5% sequentially to INR 102.98 billion for the September quarter, according to the average of estimates from 17 brokerages. This would mean a growth of 9% on a year-on-year-basis. The highest estimate for revenue is INR 104.51 billion by YES Securities and the lowest is INR 101.74 billion by Nuvama Wealth Management Ltd.

 

If the company's September quarter earnings are in line with the average of estimates, the sequential top line performance would be the best in 11 quarters but the bottom line growth would be lower than the trailing quarter.

 

In dollar terms, LTIMindtree is expected to report $1.18 billion in revenues for the September quarter, according to the average of estimates from 15 brokerages. The estimates are in a narrow range with the lowest being $1.16 billion by Nirmal Bang Equities Pvt. Ltd. and the highest at $1.20 billion by Indsec Securities and Finance Ltd. 

 

In constant currency terms, most brokerages anticipate a sequential revenue growth of just over 2% for Jul-Sept. A majority of analysts expect the company to report deal wins of around $1.5 billion for the reporting quarter. In the June quarter, the order inflow of the company totalled $1.63 billion.

 

DRIVING FACTORS

HSBC Securities expects revenue growth in the September quarter to have been led by the retail, healthcare, and banking, financial services and insurance verticals of the company. "Revenue from top-5 accounts to be stable q-o-q (quarter-on-quarter), although we remain worried for market share loss in the top-tech and banking account of the company," the brokerage said in an earnings-preview report.

 

ICICI Securities Ltd. said the ramp-up of the $450 million deal with US company Archer Daniels Midland likely helped LTIMindtree's top line grow in the reporting quarter. The brokerage expects performance of the manufacturing segment to have remained weak in the September quarter.

 

LTIMindtree's utilisation rate likely dropped in the reporting quarter on account of fresh hiring for project ramp-ups, according to analysts. In the June quarter, the company's utilisation rate was 88.1%.

 

MARGIN LEVERS

LTIMindtree's earnings before interest and tax margin for the September quarter is expected to improve sequentially by 58 basis points to 14.88%, according to the average of estimates by 12 brokerages. This is likely on the back of cost-control measures and the depreciation in the rupee, according to analysts.

 

Nomura Financial Advisory and Securities (India) Pvt. Ltd. expects a 70 basis-point improvement in the company's EBIT margin for the reporting quarter "driven by growth and end of productivity pass through to a large account."

 

LTIMindtree had reported a consolidated net profit of INR 12.54 billion for the June quarter on revenues of INR 98.41 billion. In the year-ago quarter, the company's net profit was INR 12.51 billion and revenues totalled INR 94.33 billion.

 

LTIMindtree will announce its September quarter earnings Thursday. Investors will keenly watch management commentary on the growth and margin outlook for the full financial year, demand trend across segments, discretionary spending by clients, and progress of the joint venture with the digital and technology subsidiary of Saudi Arabian Oil Company.

 

Among the 22 research recommendations on the stock available with Informist, 15 have a "buy" rating on LTIMindtree and six have a "hold" rating and one has a "sell" recommendation. The average target price of the "buy" calls is INR 6,039 and that of the "hold" calls is INR 5,415.

 

On Wednesday, shares of LTIMindtree ended at INR 5,609.50 on the National Stock Exchange, up 2.6% from the previous close. The stock has risen nearly 8% since the announcement of its June quarter earnings on Jul. 17.

 

The following are the Jul-Sept earnings estimates for LTIMindtree from 17 brokerages in descending order of the estimate of net profit in INR million:

 

Broking Firm	Net Sales (INR mln)	Net Profit (INR mln)	Revenue ($ mln)	?IT Margin
HSBC Global Research	102,647	13,090	1,176	15
Equirus Securities Pvt Ltd	103,863	13,018	1,177	15
Indsec Securities and Finance Ltd	103,000	13,000	1,200	14.9
Motilal Oswal Financial Services Ltd	103,000	13,000	1,180	14.9
Kotak Institutional Equities	103,110	12,921	1,177	14.9
Elara Securities (India) Pvt Ltd	102,681	12,890	1,176
IDBI Capital Market Services Ltd	102,780	12,848	1,178	14.9
ICICI Securities Ltd	103,956	12,823	1,183	14.5
Prabhudas Lilladher Pvt Ltd	102,800	12,800	1,179	14.9
Emkay Global Financial Services Ltd	103,167	12,760	1,176
Nuvama Wealth Management Ltd	101,740	12,733	1,176	14.9
Nirmal Bang Equities Pvt Ltd	102,025	12,700	1,159	14.8
JM Financial Institutional Securities Pvt Ltd	103,032	12,656	1,179
Nomura Equity Research	103,200	12,573	1,182	15
Anand Rathi Share and Stock Brokers Ltd	102,605	12,337
YES Securities (India) Ltd	104,510	12,325
HDFC Securities Ltd	102,580		1,176	14.8
Average	102,982	12,779.6	1,178.3	14.88

 

End

 

US$1 = INR 88.07

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

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