LTIMindtree Q4 FY26: Nuvama raises target to Rs 6,200

The key update from Nuvama on LTIMindtree

Nuvama Institutional Equities retained its ‘Buy’ rating on LTM Ltd (LTIMindtree) after the company’s March quarter (Q4 FY26) performance came in broadly in line with expectations. The brokerage also raised its target price to Rs 6,200 from Rs 6,100. Nuvama said the quarter was steady, with revenue growth and margins broadly meeting its estimates. Still, LTIMindtree shares were under pressure in early trade on Friday, falling 4.96% to a low of Rs 4,296.

Q4 FY26 operational performance: revenue, margin and deals

Nuvama said revenue rose 1.2% quarter-on-quarter (QoQ) in constant currency to $1,222 million, slightly below its estimate of 1.5% QoQ. On profitability, EBIT margin declined 100 basis points QoQ to 15.1%, which was in line with the brokerage’s estimate. Deal momentum appeared steady, with total contract value (TCV) stable at $1.69 billion, up 5.2% year-on-year (YoY). Nuvama cited the TCV trend as a sign of sustained deal traction despite a muted near-term macro environment.

Reported financials: income and profit growth in Q4 FY26

Separately, LTIMindtree reported higher income and profit for the quarter ended March 2026. Total income for Q4 FY26 rose 14.4% YoY to ₹114,664.0 million, compared with ₹100,229.0 million a year ago. Income also increased 4.2% sequentially from ₹110,082.0 million in Q3 FY26. Net profit rose 22.9% YoY to ₹13,873.0 million from ₹11,286.0 million, and increased 44.6% QoQ from ₹9,596.0 million.

Full-year FY26 performance snapshot

For the financial year 2026, the company reported total income of ₹434,020.0 million, up 11.3% YoY from ₹389,978.0 million. Full-year net profit rose 8.3% to ₹49,827.0 million from ₹46,020.0 million. The FY26 numbers add context to the brokerage’s view that the company exited the year with improving visibility.

What Nuvama sees as growth triggers

Nuvama highlighted improving growth visibility and a margin recovery trend as key positives. It said LTIMindtree closed the year on a strong note, pointing to 8% YoY growth in Q4 and what it described as visible growth triggers. The brokerage specifically flagged a recovery in BFSI clients and continued momentum in the hi-tech segment. It also said management commentary remained constructive, with confidence in sustaining growth momentum in coming quarters.

Target price raised: what changed in the model

Nuvama revised its earnings assumptions, tweaking FY27E and FY28E EPS by +2.2% and +1.8%, respectively. The brokerage said the revision was based on an updated USD/INR assumption of 93 versus 88 earlier. It maintained ‘Buy’ and lifted the target price to Rs 6,200, valuing the stock at 25x FY28E P/E. Nuvama also noted the stock currently trades at 21x FY27E P/E, and said it expects a premium to large-cap peers to sustain, supported by widening growth outperformance.

Stock move and recent trading context

Despite the supportive brokerage commentary, the stock traded weak in the session referenced, falling 4.96% to an intraday low of Rs 4,296. Separately, as of April 23, 2026 at 3:30 PM, LTIMindtree closed at Rs 4,531.50 on the NSE, down 1.58% from the previous close. The divergence between near-term price action and brokerage expectations is notable, particularly around results season when positioning can shift quickly.

Sector backdrop: results season and IT sentiment

The broader IT services context remains mixed in the data provided. Tech Mahindra reported a 16% YoY rise in net profit to Rs 1,354 crore for the March quarter, with revenue up 13% to Rs 15,076 crore, alongside commentary on AI-led transition and deal wins. In parallel, the same brokerage narrative referenced a shift in sentiment around Gen-AI concerns and upgrades across large IT names. For LTIMindtree, Nuvama’s emphasis stayed on execution, deal momentum and the path to margin recovery.

Key numbers at a glance

Why this matters for investors

For investors tracking large-cap IT services, the update matters on two fronts. First, it frames Q4 FY26 as operationally steady on revenue and margins, while highlighting stable deal flow through TCV. Second, it shows how broker models can shift even when quarterly numbers are broadly in line, in this case driven by currency assumptions and revised EPS estimates. The near-term stock decline alongside a higher target price also underlines that results interpretation and market reactions can diverge.

Conclusion

Nuvama’s note keeps LTIMindtree in the ‘Buy’ bucket, raises the target to Rs 6,200, and points to BFSI recovery, hi-tech momentum and margin repair as the core positives. The company’s reported Q4 FY26 income and profit growth provide additional support to the improving-exit narrative. The next few quarters will test whether the growth base implied by the strong Q4 exit and management’s constructive commentary translates into sustained execution.