LTIMindtree shares fall 2?ter in-line Q1 results, brokerages share mixed stance- Grow Mudra

LTIMindtree shares fall 2?ter in-line Q1 results, brokerages share mixed stance

18 Jul , 2025 By : Debdeep Gupta

Shares of LTIMindtree fell over 2 percent to Rs 5,078 apiece on July 18 after the company posted an in-line set of results for the April-June quarter (Q1FY26). While brokerages maintained their ratings on the stock following the Q1 numbers, they indicated limited upside from current levels.

Morgan Stanley, which has an "Equal-weight" rating with a target price of Rs 5,400, noted that the management expects to sustain both growth and margin momentum. However, the brokerage felt that the commentary could have been more bullish if macroeconomic conditions were more supportive.

Morgan Stanley added that LTIMindtree’s limited earnings per share (EPS) changes compared to peers is a positive sign.

Global brokerage HSBC maintained its "Buy" rating and raised the target price to Rs 6,000 from Rs 5,900 earlier. HSBC said the Q1 performance was broadly in line with expectations and reflected continued improvement in the company’s fundamentals.

Over the medium to long term, it expects LTIMindtree’s growth to be nearly double that of mega-cap IT companies, with scope for strong growth acceleration at still-attractive valuations.

Nuvama also reiterated its "Buy" rating and sharply increased its target price to Rs 6,200 from Rs 5,200. The brokerage believes LTIMindtree occupies a unique position — trading below the expensive, high-growth Tier-2 IT firms and above the cheaper, low-growth Tier-1 firms.

According to Nuvama, this places the company in a sweet spot for “growth at a reasonable valuation” with a favourable risk-reward profile.

On the other hand, Nomura maintained a "Neutral" rating with a target price of Rs 5,040. It highlighted improving growth visibility but added that FY26 is likely to be a “year of repair” and accounted for a slightly higher tax rate in its forecasts.

For the June quarter, LTIMindtree reported a 10.6 percent rise in net profit to Rs 1,254.1 crore. Revenue from operations increased 7.6 percent to Rs 9,840.6 crore, compared to Rs 9,142.6 crore in the same quarter of FY25.