LTIMindtree Limited has announced the allotment of equity shares under its Employee Stock Option Plan (ESOP), marking another step in its employee incentive program. The company's Nomination & Remuneration Committee approved this allotment on January 31, 2026.

ESOP Allotment Details

The committee has approved the allotment of 4,076 equity shares with specific parameters for employee benefit:

Share Transfer Mechanism

The equity shares have been allotted to the LTIMindtree Employee Welfare Trust, which serves as an intermediary in the ESOP process. These shares will subsequently be transferred to eligible employees when they exercise their stock options under the plan.

Share Rights and Status

All equity shares allotted under this ESOP scheme will carry equal rights with the company's existing equity shares. The shares will rank pari-passu with existing equity shares in all respects, ensuring that ESOP beneficiaries receive the same shareholder rights as other equity holders.

Regulatory Compliance

LTIMindtree has informed both the National Stock Exchange of India Limited (NSE Symbol: LTIM) and BSE Limited (Scrip Code: 540005) about this allotment. The notification was signed by Angna Arora, Company Secretary & Compliance Officer, ensuring proper regulatory disclosure requirements are met.

This ESOP allotment represents LTIMindtree's continued commitment to employee participation in the company's growth through equity-based compensation schemes.

Prabhudas Lilladher has maintained its Hold rating on lti mindtree with a target price of ₹6,000, citing the company's better-than-expected quarterly performance and strong deal momentum. The brokerage firm noted that while revenue growth exceeded estimates, selective pockets showed muted performance, particularly in key verticals.

Quarterly Performance Analysis

The company delivered revenue growth of 2.4% quarter-on-quarter in constant currency, surpassing Prabhudas Lilladher's estimates of 2.0%. This growth was primarily aided by the ramp-up of large deals and pass-throughs. However, the performance was mixed across verticals, with BFSI and CMT segments showing particularly muted growth.

Deal Pipeline and Growth Prospects

Despite the mixed vertical performance, deal signing activities remain robust in BFSI and CMT verticals. The management indicated that it will take a few more quarters to achieve normalized revenue run-rates for top marquee accounts. The pace of deceleration in top client accounts has reduced sequentially, suggesting potential recovery following productivity benefits.

The company's participation in vendor consolidation deals, combined with continued momentum in new client wins, provides better growth visibility. A notable highlight is the recent Indialed new client deal with CBDT, which is expected to contribute approximately 80-90 basis points to the topline in FY27.

Margin Outlook and Operational Efficiency

LTIMindtree successfully sustained margins at the previous quarter's high base despite having pass-throughs. This performance was supported by internal margin programs under the 'fit-for-future' initiative and favorable INR depreciation impacts in the third quarter.

Investment Recommendation

Prabhudas Lilladher has kept its margin estimates largely unchanged, acknowledging that wage hike impacts will continue to pressure margins. The brokerage projects constant currency revenue growth of 5.4%, 8.9%, and 9.5% year-on-year for FY26E, FY27E, and FY28E respectively, while maintaining margin estimates at 15.3%, 15.6%, and 15.9% for the corresponding periods.

The firm has assigned a 25x PE multiple to FY28E EPS, resulting in a target price of ₹6,000, which represents full valuations. Consequently, Prabhudas Lilladher retains its Hold recommendation on the stock, with EPS estimates seeing an upgrade of approximately 2% each for FY27E and FY28E.