ICICI Securities has reaffirmed its bullish stance on LTIMindtree Limited, elevating its price target to Rs 7,350 from Rs 6,500, projecting an 18% upside from the current market price of Rs 6,242 over a 12-month horizon. The brokerage house maintains its BUY rating, citing the IT services firm's superior growth trajectory, margin expansion ahead of schedule, and robust deal pipeline bolstered by artificial intelligence-led execution capabilities. The merged entity, formed through the consolidation of erstwhile Mindtree with LTI, serves diverse sectors including Banking, Financial Services, Insurance, Manufacturing, Retail, Healthcare, Media, and High-tech. With management targeting double-digit USD revenue growth by FY26 exit, supported by PAN 2.0 project ramp-ups and a media segment mega deal, LTIMindtree stands distinctly positioned against large-cap peers experiencing subdued single-digit growth trajectories.

Institutional Recommendation and Target Metrics

ICICI Securities has designated LTIMindtree with a BUY recommendation, establishing a revised price objective of Rs 7,350 per share, representing an enhancement from its previous estimate of Rs 6,500. The current market price stands at Rs 6,242, offering investors a potential appreciation of approximately 18 percent within a 12-month investment timeframe. The valuation methodology employed by the research house applies a price-to-earnings multiple of 30 times the projected FY28E earnings per share, reflecting confidence in the company's sustained profitability trajectory. The brokerage has rolled forward its valuation framework to FY28E estimates, incorporating enhanced revenue projections and margin expansion assumptions across the forecasting horizon.​

Outperformance Trajectory Amid Sector Headwinds

LTIMindtree distinguishes itself within the large-cap IT services ecosystem through its markedly superior growth outlook, contrasting sharply with industry peers grappling with anemic single-digit expansion rates. The organization maintains conviction regarding H2FY26 acceleration, underpinned by strategic project ramp-ups including the PAN 2.0 governmental initiative, which commenced early-stage deployment with expectations for substantial Q3 escalation. Additionally, a mega deal secured within the media segment vertical provides further revenue visibility and momentum. Management's ambitious target of achieving double-digit USD revenue growth by FY26 conclusion reflects operational confidence, with analysts projecting a robust compound annual growth rate of approximately 8.6 percent for USD-denominated revenues spanning FY25-28E. This trajectory stems from robust execution capabilities and sustained deal momentum across diversified industry verticals.​

Margin Enhancement Surpasses Internal Roadmap

The company has delivered exceptional margin recovery, with Q2FY26 EBIT margin reaching 15.9 percent, marking a sequential expansion of 160 basis points quarter-over-quarter and notably exceeding management's internal trajectory. This performance improvement derives primarily from the "Fit for Future" margin enhancement program coupled with favorable foreign exchange movements. Critically, management expresses confidence regarding continued margin expansion despite impending wage increment cycles scheduled for January 2026 and April 2026, supported by productivity enhancements, workforce pyramid optimization, and AI-enabled delivery mechanisms. Consequently, analysts have incorporated EBIT margin assumptions of 15.4 percent for FY26E, 16.0 percent for FY27E, and 16.1 percent for FY28E into their financial models.

LTIMindtree continues demonstrating healthy demand traction, with Q2 order inflow aggregating approximately USD 1.6 billion, representing a 22 percent year-over-year surge and marking the fourth consecutive quarter at this elevated threshold. Deal acquisition manifests broad-based distribution across industry verticals, substantially enhancing revenue predictability and forward visibility. The company's AI-centric strategic orientation through its BlueVerse platform, comprehensive GenAI workforce training initiatives, and improving delivery non-linearity position the organization advantageously for sustainable medium-term expansion. These technological capabilities enable differentiated service delivery models and enhanced client value propositions within an increasingly competitive landscape.​

Financial Projections and Performance Metrics

ICICI Securities anticipates net sales progression from Rs 38,008 crore in FY25 to Rs 51,717 crore by FY28E, translating to a three-year compound annual growth rate of 10.8 percent. Net profit is projected to escalate from Rs 4,602 crore in FY25 to Rs 7,278 crore in FY28E, reflecting a robust CAGR of 16.5 percent driven by both top-line expansion and margin enhancement. Earnings per share estimates advance from Rs 155.0 in FY25 to Rs 245.1 for FY28E, representing cumulative growth exceeding 58 percent across the three-year horizon. Return metrics demonstrate consistent excellence, with return on equity anticipated at 22.2 percent and return on capital employed at 27.4 percent for FY28E, underscoring superior capital deployment efficiency.​

Investment Considerations and Risk Factors

ICICI Securities articulates conviction that LTIMindtree possesses advantageous positioning to sustain above-industry growth levels, anchored by its substantial deal pipeline and relatively superior growth trajectory compared with larger industry peers. The valuation framework applying a price-to-earnings multiple of 30 times FY28E earnings appears justified given the company's differentiated growth profile and margin expansion runway. Nevertheless, investors should cognize potential headwinds including lower-than-anticipated revenue and margin expansion scenarios, alongside slower pipeline-to-deal conversion rates that could impair projected growth trajectories. The shareholding structure reveals promoter holdings at 68.5 percent as of September 2025, with foreign institutional investor participation at 6.4 percent and domestic institutional investor stakes at 16.7 percent, reflecting strong institutional confidence.