LTM shares jump 3% as Q1 results meet Street estimates. Here's what Nomura, Nuvama, and other brokerages say

Shares of LTM, formerly known as LTIMindtree, jumped more than 3% on Monday after India's sixth-largest IT services company reported a 17% year-on-year (YoY) rise in consolidated net profit for the April-June quarter of FY27, while brokerages issued mixed views on the stock.

The shares of the IT major jumped to Rs 4,170 apiece on Monday, the highest level seen by the stock in more than a month. The company posted a consolidated net profit of Rs 1,466 crore for the first quarter, up from Rs 1,254 crore a year earlier. Revenue from operations rose 18% YoY to Rs 11,608 crore, compared with Rs 9,841 crore in the corresponding quarter last year.

In dollar terms, revenue stood at $1.2 billion. While the company's performance largely met D-Street expectations, revenue grew a modest 0.3% quarter-on-quarter (QoQ) in constant currency (CC) terms, reflecting a muted sequential growth trajectory.


Also read:LTM profit jumps 17% to Rs 1,468 crore in April-June quarter

Nomura on LTM

Nomura said LTM's Q1 earnings were largely in line with estimates. While CC revenue growth of 0.3% QoQ missed its 1% QoQ estimate, the 15.5% EBIT margin beat expectations.

The brokerage said growth was led by the technology and financial services verticals, with the top five clients posting 4.5% QoQ growth in USD terms, compared with the company's overall 0.1% growth. It said this reflects a recovery in spending by key accounts across both verticals.

LTM attributed the delay in ramping up the Income Tax Department project to hardware procurement issues arising from the Middle East conflict, adding that execution is expected to pick up from Q2. Another large deal signed in Q1 is expected to begin ramping up in Q3. Against this backdrop, Nomura expects the company to deliver a 2% CQGR during Q2-Q4 and 6.1% YoY growth in FY27.

Nomura retained its 'Buy' rating with a target price of Rs 4,400, implying an upside of nearly 9% from Friday's closing price of Rs 4,037.20.

Nuvama on LTM

Nuvama said LTM reported muted but in-line Q1FY27 results. While the headline numbers were soft, the brokerage said the underlying performance remained healthy, with growth led by BFSI, hi-tech and the US, partly offset by weakness in the rest of the world.

"We are trimming FY27E/FY28E EPS by 2.8%/3.6% due to slightly lower growth. We await further clarity before factoring the Randstad IT acquisition into our estimates," Nuvama said.

The brokerage retained its 'Buy' rating but cut its target price to Rs 5,500 from Rs 6,200, implying an upside of about 36%.

JM Financial on LTM

JM Financial said LTM's Q1 revenue and margins were broadly in line with expectations. It believes strong deal wins and easing execution challenges provide near-term visibility. However, the company will need to deliver over 2% sequential growth in each of the next three quarters to surpass FY26 growth in a challenging macro environment.

The brokerage maintained its 'Reduce' rating but raised its target price to Rs 3,720 from Rs 3,285, implying a downside of nearly 8%.

Emkay on LTM

Emkay retained its 'Add' rating with a target price of Rs 4,350, implying an upside of about 8%.

The brokerage said LTM delivered a mixed Q1 performance, with revenue affected by execution delays and macro headwinds. However, margins were more resilient than expected, while strong deal momentum and improving spending by top clients support its FY27 growth outlook.

Emkay flagged weak cash conversion and continued softness in Europe as key concerns, adding that the consumer and manufacturing verticals remain under pressure.

LTM share price

LTM shares gained about 9% over the past week and 6% in the last month to close at Rs 4,037.20 on Friday. Despite the recent rally, the stock remains down nearly 34% so far in 2026.

Over the longer term, LTM shares have declined 22% in the past year and 17% over three years, while delivering a modest 1% return over the last five years. The company has a market capitalisation of over Rs 1.2 lakh crore.

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