Are LTI Mindtree Ltd latest results good or bad?

LTIMindtree Ltd's latest financial results for Q2 FY26 reflect a notable operational performance, characterized by significant margin expansion and revenue growth. The company reported a net profit of ₹1,401.10 crores, which represents a year-on-year growth of 12.00% and a quarter-on-quarter increase of 11.72%. Revenue for the same period reached ₹10,394.30 crores, showing a year-on-year growth of 10.19% and a quarter-on-quarter increase of 5.63%.
The operating margin, excluding other income, improved to 18.57%, marking a substantial increase from the previous quarter and indicating effective cost management and operational efficiency. Additionally, the return on equity (ROE) stood at an impressive 26.97%, highlighting the company's strong capital efficiency.

However, it is important to note that while LTIMindtree's operational metrics demonstrate resilience in a challenging demand environment, the company has experienced a revision in its evaluation, reflecting the market's perception of its valuation relative to its peers. The stock is currently trading at a price-to-earnings ratio of 39x, which is above the industry average, suggesting that investors are pricing in high growth expectations.

In summary, LTIMindtree's Q2 FY26 results showcase strong operational performance with expanding margins and healthy revenue growth, although the elevated valuation metrics warrant careful consideration. The company continues to navigate a cautious client spending environment while maintaining a focus on digital transformation and operational excellence.