European rebound lifts LTIMIndtree’s Q1

Near double-digit sequential USD revenue growth across its European operations helped to give LTIMindtree a promising start to the new financial year. Q1 firm-wide turnover increased by 4.4% yoy at constant currency to $1.15bn. The company’s operating margin for the three months ended 30th June, however, dipped by 70 bps yoy to 14.3%.

The 9.7% yoy USD (7% at constant currency) first quarter sales uptick in LTIMindtree Europe saw a return to growth in a region which had struggled to generate forward momentum during the prior fiscal year. Revenue from the region shrank by 1.2% in FY25 (see here). The improvement appears to have been driven by strengthening demand from the company’s Banking, Financial Services & Insurance and Manufacturing & Resources clients. Global sales in these industry verticals, which together account for more than half of the firm’s turnover, were up yoy by 10.6% and 11.6% respectively Q126. The scale of these increases more than offset top line declines in LTIMindtree’s Technology, Media & Communications and Healthcare, Life Sciences & Public Services sector businesses.

As is the firm's habit, no forward guidance was provided for either the current quarter or the remainder of FY26. Order inflow in the first quarter was, however, up 16% yoy at $1.63bn and new CEO, Venu Lambu (see here) struck a decidedly upbeat tone in his commentary on the latest results. LTIMindtree’s Q1 revenue growth performance is certainly significantly better than those of its offshore rivals which have posted their numbers for the same three-month period: TCS was down 3.1% yoy; Wipro declined by 2.3% (see here); and Tech Mahindra inched ahead by just 0.4%.

Posted by: Duncan Aitchison at 08:23

Tags: results   offshore   IT+services