LTI Mindtree Q4 Results: Mixed Performance Amid Growth Hopes

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LTI Mind Tree Q4 FY25 Results: Management Commentary Positive while Experts Strike Caution Notes

By S Jha

Mumbai, April 25, 2025: LTI Mindtree, a global technology consulting and digital solutions company, announced its Q4 FY25 results, reporting a modest year-on-year (YoY) net profit increase of 2.6 per cent to ₹1,128.5 crore, up from ₹1,100.7 crore in Q4 FY24.

Revenue for the quarter rose 9.9 per cent YoY to ₹9,771.7 crore from ₹8,892.9 crore, though it fell short of analyst expectations. The company also declared a final dividend of ₹45 per share, signalling confidence in its financial stability.

Despite the YoY growth, the results disappointed some market watchers, with key metrics underperforming estimates. Posts on X captured the sentiment, with @TradersInformed noting, “LTI Mindtree’s Q4 numbers fall short of expectations across key metrics: Revenue ₹9,771.7 Cr vs ₹9,865 Cr est. (-0.9 per cent), EBIT ₹1,345.5 Cr vs ₹1,381 Cr est. (-2.5 per cent), Margin 13.8 per cent vs 14 per cent est. (-20 bps).”

Similarly, @EngineerSalaria highlighted the mixed performance, stating, “LTI Mindtree posted average Q4 FY25 Results. Revenue up 9.9 per cent YoY & 1.1 per cent QoQ in INR but only up 5.8 per cent YoY & down 0.7 per cent in USD. EBITDA Margin at 16.3 per cent vs 16.5 per cent QoQ.”

The sequential revenue growth of 1.1 per cent quarter-on-quarter (QoQ) to ₹9,772 crore and a 4 per cent QoQ rise in net profit to ₹1,128.5 crore were overshadowed by challenges such as a dip in operating margins. The EBIT margin contracted to 13.8 per cent, down from 14 per cent expected, primarily due to project cancellations in the Banking, Financial Services, and Insurance (BFSI) vertical and higher sales and marketing expenses.

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Expert Commentary: Cautious Optimism for FY26

Analysts and industry experts shared varied perspectives on LTI Mindtree’s performance. Debashis Chatterjee, CEO and Managing Director, expressed resilience amid a challenging macro environment, stating, “We closed FY24 amidst a tough macro environment and delivered a resilient performance with full-year revenue growth of 4.4 per cent in USD terms and an EBIT margin of 15.7 per cent. Our order inflow for the full year at USD 5.6 billion registered a 15.7 per cent growth over FY23.” He emphasized the company’s focus on execution and innovation for FY25.

However, market analysts were less sanguine. A report from Moneycontrol highlighted the company’s struggles, noting, “LTI Mindtree had a disappointing quarter as two project cancellations in the BFSI vertical impacted revenue as well as margin. However, order wins were steady, and the company has a decent pipeline of efficiency-led cost takeout deals.”

The report suggested that valuation is turning reasonable for gradual accumulation, with limited downside risk despite the Q4 miss.

On X, @soumeet_sarkar shared Morgan Stanley’s downgrade, stating, “MS on LTI Mindtree – downgrade to Equal-weight from Overweight; Cut TP to ₹4650 from ₹5800. Q4 results provided limited assurance on growth visibility. Given looming macro uncertainty, micro factors can take a backseat.”

CNBC-TV18 reported a more optimistic note from the management, stating, “LTI Mindtree shares see price target cuts post weak Q4; eyes recovery in Q1.” The management attributed the sequential revenue dip to delays in deal ramp-ups and furloughs but expressed confidence in returning to growth in Q1 FY26.

Vipul Chandra, CFO, acknowledged margin pressures, noting, “The margin dip is due to revenue not scaling as anticipated. That’s due to lack of operational efficiency.”

Market Reaction and Strategic Outlook

LTI Mindtree’s stock saw volatility post-results, with shares jumping 6 per cent ahead of the announcement but facing downward pressure after the miss. The stock was trading flat on Friday amid strength in IT stocks even while broader market went for a selloff.

The company’s strategic focus on AI, cloud, and digital transformation, coupled with partnerships with global tech majors like AWS, Microsoft, and Oracle, positions it well for future growth, added analysts.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.

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