Q1 FY26 results: LTIMindtree, Emkay key numbers

Why these Q1 FY26 updates matter

Two very different businesses reported contrasting Q1 FY26 trends: LTIMindtree (LTM) showed muted sequential revenue but better operating margin and healthy deal intake, while Emkay Global Financial Services posted a sharp year-on-year drop in profit and EPS. For investors, the updates highlight how execution timing, geography-specific disruptions, and operating efficiency can move quarterly outcomes. LTIMindtree’s commentary centred on ramp-up delays and Middle East disruptions, even as its order book stayed strong. Emkay’s numbers, meanwhile, reflected lower revenue and a much thinner profit margin than the year-ago quarter. Both sets of disclosures provide useful markers for demand conditions and operating leverage.

LTIMindtree: revenue nearly flat as execution issues hit

LTIMindtree’s Q1 revenue rose 0.1% quarter-on-quarter to $1,224 million, or 0.3% in constant currency. The performance was described as muted versus expectations, largely due to delayed ramp-up of a large deal in India and war-related disruption in the Middle East. The company also flagged the impact of lower seasonal pass-through revenue in the quarter. Despite the softer revenue outcome, the update indicated stability returning in large accounts. Top-5 clients grew 4.5% QoQ and top-10 clients grew 4.3% QoQ, pointing to steadier traction across key customers.

LTIMindtree margin improves on operational efficiencies

Operating profitability improved even with limited revenue growth. LTIMindtree’s EBIT margin expanded 40 bps QoQ to 15.5%, above an estimate of 15.3% cited in the note. The margin improvement was attributed mainly to operational efficiencies from the ‘New Horizon’ program (40 bps) and a currency gain. These positives were partly offset by a wage hike. The quarter showed that cost actions can support margins even when revenue growth is subdued, although sustainability would depend on how quickly delayed ramps normalise.

LTIMindtree: net profit rises; headcount marginally lower

Net profit increased 5.3% QoQ to ₹14,700 million, beating an estimate referenced in the note. The profit upside was linked to a ₹1,900 million fair-value gain on convertible instruments held in Voicing.AI, Inc. Operational metrics were mixed: headcount fell 0.1% QoQ to 87,886, while utilisation (excluding trainees) improved 70 bps QoQ to 86.4%. The note also flagged a negative: weak cash conversion at 56% (OCF/EBITDA).

LTIMindtree deal wins stay healthy; AI revenue scales

Deal intake was described as healthy, with total contract value (TCV) of $1,680 million in the quarter, including two large deals. The book-to-bill was cited at ~1.4x, taking trailing twelve-month (TTM) TCV to $1,700 million. The update also quantified AI momentum: AI revenue across Creative, Industrial, and Business AI reached a quarterly run rate of ~$150 million, or ~12% of LTIMindtree revenue. The note maintained an ADD rating and a target price of ₹4,350, based on 18x Jun-28E EPS, while largely retaining estimates.

LTIMindtree vertical and geography mix: NA offsets Europe weakness

The company’s vertical reporting was consolidated into four segments. Growth was led by Financial Services (3.2% QoQ CC) and Tech & Services (3.4% QoQ CC), partially offset by declines in Production (-5.7%) and Consumer (-0.7%). The Production decline was linked to a seasonal fall in pass-through revenue. Consumer weakness was tied to delayed ramp-ups in India and the Middle East. Geographically, North America led growth (2.4% QoQ CC), while Europe declined (-1.6%) and RoW fell (-9.4%).

Emkay Global: Q1 FY26 revenue and profit decline year-on-year

Emkay Global Financial Services (NSE: EMKAY) reported Q1 FY26 revenue of ₹753.2 million, down 13% from Q1 FY25. Net income was ₹47.8 million, down 66% from the year-ago quarter, with profit margin falling to 6.4% from 16%. EPS came in at ₹1.88, compared with ₹5.63 in Q1 FY25. A week-on-week market reaction was also noted, with Emkay shares down 9.7% from a week ago.

Emkay quarterly operating snapshot from reported line items

A separate quarterly snapshot in the provided text showed revenue at ₹729.7 million for the quarter (from ₹710.4 million in the previous quarter), indicating a 2.72% QoQ increase and an 11.75% YoY decline versus ₹820.0 million. Operating profit was shown at ₹72.2 million, down 3.60% QoQ from ₹74.9 million, and down 12.06% YoY. These figures reflect a modest sequential improvement in revenue but weaker profitability compared with both the previous quarter and the year-ago period, as presented in the summary.

Key numbers at a glance (normalised to millions)

All revenue figures below are normalised to million units (currency retained as stated in the source).

Market impact and what to track next

For LTIMindtree, the quarter’s message was that demand and deal wins remained supportive, but revenue conversion can still be held back by ramp timing and disruption in specific regions such as the Middle East. Investors are likely to focus on whether delayed India ramps normalise and whether Europe softness persists, given the reported contraction there. Margins benefited from operational efficiencies under the New Horizon program, but the interaction between wage hikes, currency movements, and utilisation will be key to watch.

For Emkay, the year-on-year compression in profit and margin was directly linked in the note to lower revenue, and the reported EPS drop underscores operating leverage in weaker quarters. The stock’s week-on-week decline suggests the market has been sensitive to the earnings reset. The company also disclosed that an investor presentation for the quarter ended 30.06.2025 was being uploaded to its website, signalling ongoing disclosures investors may monitor for business mix and drivers.

Conclusion

LTIMindtree delivered a quarter where operating performance improved faster than reported revenue, supported by efficiency measures and steady deal intake, while execution delays and regional disruption weighed on growth. Emkay’s Q1 FY26 outcome showed a materially weaker year-on-year profit profile, despite a sequential improvement indicated in some quarterly line items. The next set of updates to watch will be LTIMindtree’s progress on ramp-ups and geography recovery, and Emkay’s follow-through disclosures in its investor presentation and subsequent quarterly filings.