LTIMindtree shares drop 2% after Q1 show fails to cheer D-Street

LTIMindtree shares dopped 1.8% to their day’s low of Rs 5,100.50 on the NSE on Friday after the IT services company reported its Q1FY26 results, posting an 11% year-on-year (YoY) rise in consolidated net profit for Q1FY26 to Rs 1,255 crore, compared to Rs 1,135 crore in the corresponding period last year.

The revenue from operations rose 8% to Rs 9,841 crore from Rs 9,143 crore a year ago.

On a sequential basis, profit after tax (PAT) rose 11.2% from Rs 1,129 crore in Q4FY25, while revenue was up marginally by 0.7% from Rs 9,772 crore in the previous quarter.


Free cash flow during the quarter stood at Rs 761 crore, down from Rs 1,005 crore in Q1FY25 and slightly lower than Rs 764 crore in Q4FY25. Cash and cash equivalents as of Q1FY26 stood at Rs 12,835 crore, compared to Rs 11,334 crore in the same quarter last year and Rs 13,346 crore in Q4FY25.

LTIMindtree reported dollar revenue of $1,153.3 million, up 5.2% YoY and 2% quarter-on-quarter (QoQ). Net profit came in at $147 million, registering a 13% sequential and 8% annual increase.

The operating margin measured as Earnings Before Interest and Taxes (EBIT) in the quarter under review stood at 14.3%, expanding by 50 bps on a QoQ basis, the company said in a filing to the exchanges.

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Management commentary

Commenting on the earnings, Venu Lambu, CEO & Managing Director said the company had a promising start to the year delivering broad-based growth, expanding margins, and making significant progress on its strategic priorities. The Fit4Future program, sales transformation efforts, and pivot to AI have enhanced agility and strengthened company's ability to scale for the future.

"While the macroeconomic environment remains challenging, I’m confident that our disciplined execution and unwavering client focus will continue to drive our performance,” he added.

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LTIMindtree share price target

According to Trendlyne, the average target price for LTIMindtree is Rs 5,231, indicating a potential upside of nearly 1% from current levels. Of the 40 analysts tracking the stock, the consensus rating is ‘Buy’.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)