Buy LTIMindtree; target of Rs 6650: Motilal Oswal

Motilal Oswal's research report on LTIMindtree

LTIMindtree (LTIM) reported revenue of USD1.1b in 2QFY26, up 2.4% QoQ CC, above our estimate of 2.0% QoQ CC growth. EBIT margin at 15.9% was above our estimate of 14.9%. PAT stood at INR13.8b, up 10.1% QoQ/10.4% YoY and in line with our estimate of INR13b. In INR terms, revenue/EBIT/PAT grew 8.9%/8.0%/10.4% YoY in 1HFY26. In 2HFY26, we expect revenue/EBIT/PAT to grow 11.5%/28.4%/29.4% YoY.

Outlook

With improving revenue visibility and earnings growth potential of 13-15% over the medium term, we upgrade our estimates by 5.1%/3.8% for FY26/FY27. We value LTIM at 31x Jun’27E EPS with a TP of INR6,650, implying an 18% upside potential.