LTIMindtree reported a quarterly revenue of $1.2 billion, marking a 1.1% growth, but adjusted profit fell 6% to INR 14 billion. While currency volatility created near-term pressure, analysts have maintained a positive outlook, citing expectations for stronger performance in the second half of the fiscal year.
LTIMindtree has reported its financial results for the second quarter of the 2027 fiscal year, showing a mix of steady revenue growth and a decline in net profit. The company generated revenue of USD 1.2 billion, which was a 1.1% increase in constant currency terms, slightly better than what many analysts expected. However, the adjusted profit after tax was INR 14 billion, reflecting a 6% drop compared to the previous quarter.
The company’s EBIT margin, a key measure of operational profitability, stood at 15.6%. This margin performance was generally in line with market projections, though the bottom-line profit fell short of some estimates.
Brokerage firm Motilal Oswal has maintained its positive stance on the stock but updated its outlook. The analysts lowered their earnings per share estimates for the 2027 fiscal year, pointing to anticipated losses from foreign exchange movements. IT services companies in India often face this risk because they earn income in foreign currencies, primarily the US Dollar, which can fluctuate against the Rupee.
Despite the short-term pressure from currency volatility, the brokerage remains optimistic about the company's long-term operational performance. They have revised their valuation multiple to 21 times the estimated FY28 earnings, up from 20 times, suggesting confidence that the company will see margin expansion as it enters the next fiscal year.
For investors, the key monitorables will be how LTIMindtree manages its operational efficiency in the coming quarters and whether it can offset currency-related headwinds. The company's ability to maintain its margin levels while navigating the current global demand environment remains a central point to watch for shareholders.