LTIMindtree shares slip 7% after Q3 earnings; here’s why Axis Securities sees 22% upside
LTIMindtree reported a consolidated net profit of Rs 960 crore, down 11.7% year-on-year (YoY) and 30.5% sequentially.
- Jan 20, 2026,
- Updated Jan 20, 2026 12:08 PM IST
In Tuesday’s trade, shares of LTIMindtree slipped as much as 6.7% to touch a day’s low of Rs 5,977 on the BSE, against its previous close of Rs 6,405.25.
The sell-off followed the IT major's third-quarter earnings report, where a one-time impact dragged net profit numbers below street estimates, even as the company posted steady operational growth, Axis Securities said.
LTIMindtree reported a consolidated net profit of Rs 960 crore, down 11.7% year-on-year (YoY) and 30.5% sequentially. However, analysts noted this was largely due to an exceptional item—a one-time impact of Rs 590 crore due to the new labour code.
The company reported revenue of Rs 10,781 crore, rising 11.6% YoY and 3.7% quarter-on-quarter (QoQ). In constant currency terms, revenue grew 5.2% YoY. Even with seasonal headwinds like furloughs, LTIMindtree managed to expand its operational EBIT margins by 20 basis points to 16.1%, aided by favourable forex tailwinds and cost-efficiency measures.
Despite the market reaction, brokerage firm Axis Securities has maintained a ‘Buy’ rating on LTIMindtree stock with a target price of Rs 7,300. From the day's low, this target implies a potential upside of approximately 22%.
The order book remains healthy with inflows of $1.7 billion, up 6.4% QoQ. This includes high-quality deal wins such as a $155 million five-year engagement with a US insurer and a key partnership with a global financial institution, Axis said.
Management is betting big on its 'BlueVerse' platform, positioning it as a primary accelerator to becoming an AI-ready organisation. Axis Securities believes this will be a key differentiator in the enterprise-agent era, unlocking new productivity paradigms for clients.
The company added 1,511 net employees in Q3, taking its headcount to 87,958. Crucially, over 50% of this workforce has now achieved intermediate or advanced AI skills, signaling readiness for complex future demands.
The brokerage values the stock at 32x its December 2027 estimated earnings per share (EPS), revising its target price to Rs 7,300 from Rs 6,400 earlier.
The brokerage sees the current valuation as an attractive entry point for long-term investors looking to capitalise on the IT sector's recovery curve.
In Tuesday’s trade, shares of LTIMindtree slipped as much as 6.7% to touch a day’s low of Rs 5,977 on the BSE, against its previous close of Rs 6,405.25.
The sell-off followed the IT major's third-quarter earnings report, where a one-time impact dragged net profit numbers below street estimates, even as the company posted steady operational growth, Axis Securities said.
LTIMindtree reported a consolidated net profit of Rs 960 crore, down 11.7% year-on-year (YoY) and 30.5% sequentially. However, analysts noted this was largely due to an exceptional item—a one-time impact of Rs 590 crore due to the new labour code.
The company reported revenue of Rs 10,781 crore, rising 11.6% YoY and 3.7% quarter-on-quarter (QoQ). In constant currency terms, revenue grew 5.2% YoY. Even with seasonal headwinds like furloughs, LTIMindtree managed to expand its operational EBIT margins by 20 basis points to 16.1%, aided by favourable forex tailwinds and cost-efficiency measures.
Despite the market reaction, brokerage firm Axis Securities has maintained a ‘Buy’ rating on LTIMindtree stock with a target price of Rs 7,300. From the day's low, this target implies a potential upside of approximately 22%.
The order book remains healthy with inflows of $1.7 billion, up 6.4% QoQ. This includes high-quality deal wins such as a $155 million five-year engagement with a US insurer and a key partnership with a global financial institution, Axis said.
Management is betting big on its 'BlueVerse' platform, positioning it as a primary accelerator to becoming an AI-ready organisation. Axis Securities believes this will be a key differentiator in the enterprise-agent era, unlocking new productivity paradigms for clients.
The company added 1,511 net employees in Q3, taking its headcount to 87,958. Crucially, over 50% of this workforce has now achieved intermediate or advanced AI skills, signaling readiness for complex future demands.
The brokerage values the stock at 32x its December 2027 estimated earnings per share (EPS), revising its target price to Rs 7,300 from Rs 6,400 earlier.
The brokerage sees the current valuation as an attractive entry point for long-term investors looking to capitalise on the IT sector's recovery curve.