LTIMindtree Limited (LTIM) AI Stock Analysis

• Market Cap: ₹1.32T
• Dividend Yield: 1.08%
• Average Volume (3M): 12.27K
• Price to Earnings (P/E): 27.8
• Beta (1Y): 1.27
• Revenue Growth: 8.72%
• EPS Growth: 4.54%
• Country: IN
• Employees: 84,307
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 32.71
• Shares Outstanding: 296,493,320
• 10 Day Avg. Volume: 13,689
• 30 Day Avg. Volume: 12,269
• PEG Ratio: 100.32
• Price to Book (P/B): 5.78
• Price to Sales (P/S): 3.45
• P/FCF Ratio: 36.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹6,244.25
• Price Target Upside: 2.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 182.99
• Revenue Forecast (FY): ₹420.84B

• Rating: 66 Neutral
• Price Target: ₹4,821.00 ▼(-21.10% Downside)
• Action: Downgraded Date: 01/21/26
• Date: Action: Downgraded 01/21/26

The score is driven primarily by strong financial quality (growth, profitability, and low leverage), tempered by recent margin/FCF softness. Near-term technicals are neutral-to-weak versus short moving averages, and a high P/E with a modest dividend yield weighs on the overall attractiveness.

Positive Factors

Conservative balance sheet & strong ROE

LTIMindtree's low leverage (debt/equity ~0.10) and historically strong ROE (~20%+) provide durable financial flexibility. This reduces refinancing and downturn risk, supports investment in capability building, and preserves capacity to pursue inorganic growth without materially stressing capital structure.

Steady revenue growth and diversified services

Consistent multi-year revenue expansion across 2021–2025 reflects stable demand. Combined with a broad service mix—application services, cloud, data/analytics, platforms and consulting—this diversification sustains recurring and project revenue, enabling cross-sell and reducing client/segment concentration risk.

Solid operating and net margins

Operating margins in the high-teens and net margins in the low-teens are healthy for an IT services firm, supporting internal investment and consistent cash generation. These margin levels indicate competitive delivery efficiency and pricing power that can sustain returns over a multi-quarter horizon.

Negative Factors

Margin compression vs prior years

The company has experienced margin erosion relative to 2021–2022, suggesting pricing pressure or higher delivery costs. Persistent compression would limit operating leverage, reduce incremental profitability from revenue growth, and force either cost restructuring or higher pricing to restore historical margins.

Softening free cash flow momentum

TTM free cash flow decline and weaker OCF coverage point to higher working-capital needs or timing effects. Reduced cash conversion lowers available internal funding for capex, M&A, dividends or buybacks and increases reliance on external financing during slower quarters.

Debt has increased in TTM vs annual

Although leverage remains low, a recent TTM increase in debt marks a departure from prior conservatism. If the uptick continues it could erode the company's low-refinancing-risk profile and constrain strategic optionality, especially if cash flow recovery lags or funding is used for non-productive purposes.

LTIMindtree Limited Business Overview & Revenue Model

Company Description

LTIMindtree Limited, a technology consulting and digital solutions company, provides information technology services and solutions in India, North America, Europe, the Asia Pacific, and internationally. The company operates through Banking, Financial Services & Insurance; Manufacturing; Energy & Utilities; High-Tech, Media & Entertainment; and CPG, Retail, Pharma & Others segments. It offers application development, maintenance and outsourcing, enterprise, infrastructure management, testing, digital, and platform-based solutions. LTIMindtree Limited has a strategic collaboration agreement with Amazon Web Services, Inc.; and a strategic partnership with eClinicalHealth Limited to enhance digital innovation in clinical trials management process for patient centric drug development. The company was formerly known as Larsen & Toubro Infotech Limited and changed its name to LTIMindtree Limited in November 2022. The company was incorporated in 1996 and is based in Mumbai, India. LTIMindtree Limited operates as a subsidiary of Larsen & Toubro Limited.

How the Company Makes Money

LTIM generates revenue primarily through its IT service offerings, which include consulting, application development, and digital transformation services. The company's revenue model is based on a combination of fixed-price contracts, time-and-materials contracts, and managed services agreements. Key revenue streams include project-based services, long-term contracts with clients, and recurring revenue from managed services. LTIM has established significant partnerships with major technology providers such as Microsoft, AWS, and SAP, which enhance its service capabilities and broaden its market reach. Additionally, the company's focus on sectors like financial services and healthcare, which often require ongoing technological support, contributes to its steady revenue generation.

LTIMindtree Limited Financial Statement Overview

Summary

Strong overall fundamentals: steady revenue growth, solid operating and net margins for IT services, and a conservatively levered balance sheet with strong ROE. Key risks are margin compression versus 2021–2022 and softer recent free-cash-flow momentum/conversion in TTM.

Income Statement

Revenue has grown steadily across the annual periods (from 2021 to 2025), and TTM (Trailing-Twelve-Months) revenue remains higher than the latest annual level, indicating continued expansion. Profitability is solid for an IT services business, with TTM operating profitability around the high-teens and net margin in the low-teens. The main watch-out is margin compression versus earlier years (notably lower gross margin and lower net margin than 2021–2022), suggesting pricing and/or delivery-cost pressure even as revenue grows.

Balance Sheet

The balance sheet is conservatively levered: debt is low relative to equity (roughly ~0.10 in both annual and TTM views), which reduces refinancing and downturn risk. Equity has expanded meaningfully over time, supporting balance-sheet resilience, while returns on equity remain strong (about ~20%+ in annual and TTM data). A mild negative is that debt has increased in TTM versus the latest annual period, but leverage is still very manageable.

Cash Flow

Cash generation is generally healthy: TTM (Trailing-Twelve-Months) free cash flow is close to net income, indicating good earnings quality and conversion. However, cash-flow momentum has softened recently, with TTM free cash flow down year-over-year (negative growth) and operating cash flow covering a smaller share of reported earnings than in some prior annual periods. This points to higher working-capital needs and/or timing effects that investors should monitor.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	407.88B	380.08B	355.17B	331.83B	261.09B	123.70B
Gross Profit	111.39B	107.54B	94.06B	123.03B	62.64B	47.76B
EBITDA	77.59B	74.85B	70.89B	66.65B	60.14B	29.92B
Net Income	47.54B	45.99B	45.82B	44.08B	39.48B	19.36B
Balance Sheet
Total Assets	342.88B	306.30B	275.63B	234.96B	205.82B	107.09B
Cash, Cash Equivalents and Short-Term Investments	140.67B	112.36B	95.72B	76.64B	72.24B	43.90B
Total Debt	42.68B	21.87B	20.71B	15.41B	13.91B	7.98B
Total Liabilities	105.22B	79.19B	75.37B	68.97B	62.90B	34.02B
Stockholders Equity	236.83B	226.98B	200.17B	165.92B	142.87B	73.03B
Cash Flow
Free Cash Flow	40.85B	35.96B	48.26B	21.55B	21.93B	21.28B
Operating Cash Flow	46.80B	45.46B	56.70B	30.95B	32.51B	24.00B
Investing Cash Flow	-22.13B	-17.38B	-39.12B	-3.31B	-16.45B	-16.56B
Financing Cash Flow	-26.97B	-25.74B	-22.69B	-19.32B	-16.80B	-5.09B

LTIMindtree Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6110.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LTIM, the sentiment is Negative. The current price of 6110.25 is above the 20-day moving average (MA) of 5207.97, above the 50-day MA of 5728.02, and above the 200-day MA of 5477.18, indicating a bearish trend. The MACD of -367.06 indicates Positive momentum. The RSI at 19.46 is Positive, neither overbought nor oversold. The STOCH value of 7.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LTIM.

LTIMindtree Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPHASIS	73 Outperform	₹437.93B	24.28	―	1.94%	8.73%	11.33%
PERSISTENT	69 Neutral	₹746.85B	42.55	―	0.55%	23.27%	33.09%
WIPRO	68 Neutral	₹2.11T	15.85	―	4.05%	1.10%	14.83%
LTIM	66 Neutral	₹1.32T	27.82	―	1.08%	8.72%	4.54%
COFORGE	63 Neutral	₹398.36B	32.95	―	0.88%	41.97%	38.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TECHM	55 Neutral	₹1.33T	25.98	―	2.76%	3.30%	36.78%

LTIMindtree Limited Corporate Events

LTM Secures $100 Million, Seven-Year Deal with European MedTech Leader

LTM, the AI-centric global technology services arm of the Larsen & Toubro Group, provides integrated operations, digital transformation, and business AI solutions for large enterprises worldwide. With more than 87,000 employees in 40 countries, it focuses on blending domain knowledge with advanced technology platforms to drive productivity and new value creation for clients.

The company has signed a seven-year, $100 million strategic agreement with a leading European MedTech provider of innovative hearing solutions to handle product development and support across its flagship brands. Under the deal, LTM will use its iNXT digital transformation platform to develop and maintain core wearable hearing devices, professional fitting applications, and consumer mobile apps, while also managing complex MedTech compliance and regulatory requirements, deepening its presence in the European healthcare technology market and reinforcing its role in high-value, long-term digital partnerships.

LTIMindtree Allots 4,076 Equity Shares Under ESOP to Employee Welfare Trust

LTIMindtree Limited has approved the allotment of 4,076 equity shares of face value Re.1 each to the LTIMindtree Employee Welfare Trust under its 2021 employee stock option plan, following a resolution passed by the Nomination & Remuneration Committee on January 31, 2026. These shares, which will rank pari passu with existing equity, are intended to be transferred to eligible employees upon exercise of their options, underscoring the company’s continued use of equity-based compensation to align employee interests with shareholder value and support long-term talent retention.

LTIMindtree Posts Q3 FY26 Earnings Call Recording for Investor Access

LTIMindtree Limited has announced that the recording of its Q3 FY26 earnings conference call, held on January 19, 2026, is now available on the company’s website for investors and other stakeholders. The disclosure, made to both the National Stock Exchange of India and BSE, enhances transparency and provides the market with access to management’s discussion on quarterly performance and outlook, supporting informed decision-making among shareholders and analysts.