LTIMindtree Q2 net up 10.1% sequentially, revenue crosses Rs 10,000 crore

LTIMindtree on Thursday reported a 10.1% sequential growth in its net profit for the July-September period when its quarterly revenue crossed the Rs 10,000-crore mark for the first time, helped by better than expected margin improvement and mega-deal wins.

The L&T Group’s software services arm posted a net profit of Rs 1,381 crore for the second quarter, up 10.4% year on year, on a revenue of Rs 10,394 crore, up 10.2% on year and by 10.2% sequentially.

Its operating margin also beat analyst estimates at 15.9% and expanded by 100 bps sequentially and ahead of plans, the company said.


“Q2FY26 has been a strong quarter for us, marked by broad-based performance across our business,” said Venu Lambu, chief executive officer and managing director of LTIMindtree, who took over in May when former CEO Debashis Chatterjee stepped down.

“Our strategy remains on course, and our results reflect disciplined execution, the depth of our client relationships, and solid progress in our ongoing transformation,” he added.

LTIMindtree does not give any guidance but expects the second half of the year to be “slightly better” than H1,” the management said. The firm is also chasing double-digit revenue growth in USD constant currency terms in the second half.

India’s sixth largest IT firm has been recording larger sized deals this year. Last month it won its largest-ever deal with a US-based media group, reportedly worth $580 million. It had won a $450-million deal with an agribusiness major in May.

The company named Gururaj Deshpande as its chief delivery officer during the last quarter, to strengthen its delivery operations and drive AI integration across client engagements.

LTIMindtree is also modifying its wage-hike cycle. Instead of one annual wage hike, which typically occurs in April-June quarter, raises will be split across two quarters. Half of the employees will get hikes effective January 1 and the other 50% on April 1, Lambu said during the analyst call late on Thursday.

“I think we're going through a very significant inflection point in the industry and also within our company… So, we have fixed two milestones on how we address the wage hike. And my personal view is that maybe the new normal, going forward as well,” he said.

During the second quarter, the North America and Europe markets recorded stronger growth than previous quarters and grew sequentially at 2.1% and 2.4%, respectively. These markets started returning to positive growth beginning this June.

The consumer business as well as healthcare, life sciences, and public services posted strongest rebound and grew 9.1% and 10.2%, respectively, in July-September even as LTIMindtree’s larger peers continued to tackle headwinds in these verticals. The BFSI vertical, which constitutes the largest 36.2% of the firm’s revenue, grew modestly at 0.2%.

LTIMindtree’s order book for the quarter increased to $1.59 billion from $1.30 billion a year earlier. Sequentially, though, it fell from $1.63 billion.

The board of directors has recommended an interim dividend of Rs 22 per equity share.

Ahead of the results, LTIMindtree’s stock closed 0.14% higher at Rs 5,620.20 apiece on the BSE on Thursday.

Employee count stood at 86,447 at the end of September, an increase of 2,588 over the previous quarter, including 2,604 freshers. The company also has 1,500 digital agents in action working alongside its workforce, Lambu said.

Attrition over the last twelve months stood at 14.2%, a slight improvement from last quarter, and workforce utilisation (excluding trainees) was at 88.1%.