Anand Rathi Maintains Buy Rating on LTIMindtree with Target Price of ₹7,375
Anand Rathi maintains BUY rating on LTIMindtree with revised target of ₹7,375, citing solid Q3FY26 performance with constant currency revenue of $1.21 billion (up 2.4% q/q) and EBIT margin expansion to 16.1%. The company's LTM TCV reached $6.50 billion (up 12% y/y) driven by multi-year wins across AI, modernisation and managed services as clients consolidate spending with strategic partners.
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LTI Mindtree has received a maintained BUY rating from Anand Rathi with a revised target price of ₹7,375, representing an upside of approximately 16.0% from the current market price. The brokerage upgraded its target from the previous ₹7,081, citing the company's resilient performance in Q3FY26 despite seasonal challenges.
Strong Q3FY26 Financial Performance
LTIMindtree delivered solid results in Q3FY26, demonstrating operational resilience despite furloughs impacting the sector. The company's financial metrics showed consistent improvement across key parameters.
| Metric | Q3FY26 Performance | Growth |
|---|---|---|
| Constant Currency Revenue | $1.21 billion | +2.4% q/q |
| EBIT Margin | 16.1% | +20 bps q/q |
| One-time Labour Code Impact | ₹5.90 billion | - |
Contract Wins and Business Growth
The company's contract performance demonstrated strong momentum with robust total contract value growth. LTIMindtree's last twelve months total contract value reached $6.50 billion, marking a 12% year-on-year increase. This growth was driven by multi-year wins across diverse technology domains including managed services, modernisation, cyber security, data analytics, AI and AI-agent deployments.
| Contract Metrics | Value | Growth |
|---|---|---|
| LTM TCV (Quarter) | $1.69 billion | +0.6% y/y |
| Book-to-Bill Ratio | 1.4x | - |
| LTM TCV (Annual) | $6.50 billion | +12% y/y |
Sector-wise Growth Distribution
The revenue growth was broad-based but showed particular strength in specific sectors and geographies. Manufacturing & Resources segment grew 9.4% quarter-on-quarter, while Healthcare & Public Services expanded by 9.9%. Geographically, Europe contributed 3.4% growth and Rest of World delivered strong 14.1% growth, driven by execution excellence and wallet share gains in select markets.
Strategic Positioning and Outlook
Anand Rathi noted that clients are consolidating their technology spending with fewer strategic partners while funding 'run + modernize' programs alongside targeted AI-led transformation initiatives. The brokerage identified that top 5 client headwinds are primarily productivity-cycle issues expected to bottom out by Q4FY26, which should establish a more growth-oriented client mix going forward.
The research house believes that once current headwinds fade, vendor consolidation will become a wallet share opportunity rather than a risk factor. This positioning supports the maintained BUY recommendation with the revised higher target price of ₹7,375.
Historical Stock Returns for LTI Mindtree
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -6.40% | -0.06% | -3.24% | +17.04% | +2.95% | +46.58% |
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