LTIMindtree shares fall 7% even as stock analysts raise target prices

LTIMindtree Ltd  (LTIM) on Tuesday tumbled 7 per cent to slip below the Rs 6,000 level, even as stock analysts said the December quarter results were decent and raised target prices for the stock. Analysts noted deals are being renewed and vendors are being consolidated, adding that the transition phase is longer and the ramp up takes time, which is reflecting in the reduced contribution from the Top 5 bucket. For the largest hi-tech client this phase is over, while one of the top BFSI client is expected to bottom out in Q4, Nirmal Bang Institutional Equities said.

By 9.30 am, LTIMindtree shares had fallen 6.53 per cent to hit a low of Rs 5,986.95 level. 

LTIMindtree reported a 2.4 per cent sequential revenue growth in constant currency (CC) terms, which was above analyst expectation of 2.1 per cent, supported by steady execution, improving deal conversion, and rising traction in AI-led offerings.

The management attributed the growth to disciplined execution and focused sales efforts, and reiterated their ambition to exit FY26 with near double-digit revenue growth in dollar terms. 

"Wage hikes will happen in Q4 and Q1, with an estimated margin impact of up to 1 per cent per quarter, partly offset by productivity initiatives. Order inflows stood at $1.7 billion, reflecting continued wallet-share gains and reinforcing management's confidence in near-term demand visibility," Antique Stock Broking said.

This brokerage has raised its target price on the stock to Rs 6,750 from Rs 6,550 earlier. 

MOFSL reiterated 'Buy' on LTIM, supported by sustained revenue momentum and steady order inflows. The carry-forward of deal ramp-ups into Q4 and a more balanced vertical mix support its confidence in 5.6 per cent YoY CC growth for FY26, with AI-led services spending expected to provide additional support from mid-2026.

"Margins remain supported by Fit4Future execution and SG&A discipline, even as near-term wage headwinds persist. With improving revenue visibility and medium-term earnings growth potential of 13–15 per cent, we broadly maintain our estimates. We value LTIM at 32x FY28E EPS, implying a target of Rs 7,900 and 23 per cent upside," MOFSL said.

Total contract value for LTIMindtree stood at $1,690 million for the quarter, which was its highest-quarterly TCV in the history.

Nirmal Bang said the growth momentum can sustain on the back of recently signed large deals and LTIM is likely to outperform in terms of growth compared to the Tier-1 set. Given the broad-based growth and order book momentum, it suggested a higher target of Rs 6,287 for the stock from Rs 5,697 earlier. 

For Nuvama, LTIM witnessed a strong all-round Q3 performance, continuing the growth momentum of last two quarters. Margins too have now improved for three consecutive quarters, it said.

"LTIM finally appears to be moving towards realising its true potential under the leadership of Mr. Venu Lambu. We continue to like the story and maintain FY26E/27E EPS. We roll forward our valuation to 32x (earlier 30x) FY28 PE; maintain ‘BUY’ with a target of Rs 7,750 (earlier Rs 6,900)," it said.