LTI Mindtree Ltd Reports Strongest Quarterly Performance, Upgrades to Strong Buy

Record-Breaking Quarterly Results Signal Strong Momentum

LTI Mindtree Ltd posted net sales of ₹10,781 crore in the December 2025 quarter, marking the highest quarterly revenue in its history. This represents a substantial improvement over the previous three months, where the financial trend score rose from 5 to 12, signalling a clear acceleration in business activity. The company’s PBDIT (Profit Before Depreciation, Interest and Taxes) also reached an all-time high of ₹2,002.7 crore, underscoring effective cost management and operational efficiency.

Profit before tax excluding other income (PBT less OI) climbed to ₹1,667.8 crore, while net profit after tax (PAT) surged to ₹1,404.76 crore, both setting new quarterly records. The operating profit margin to net sales ratio expanded to 18.58%, the highest level recorded by the company, reflecting margin expansion amid rising revenues.

However, the earnings per share (EPS) for the quarter stood at ₹32.79, the lowest in recent quarters, which may be attributed to factors such as share dilution or one-off expenses. Despite this, the overall financial performance remains robust and encouraging for investors.

Comparative Performance and Market Context

Against the backdrop of a challenging macroeconomic environment, LTI Mindtree’s stock has outperformed key benchmarks. Year-to-date, the stock has delivered a 5.6% return, compared to a negative 2.32% return for the Sensex. Over the past year, the stock’s return of 8.79% slightly outpaced the Sensex’s 8.65%, while its three-year return of 50.91% significantly exceeded the Sensex’s 36.79% gain. This outperformance highlights the company’s resilience and growth potential within the Computers - Software & Consulting sector.

In the short term, the stock has shown strong momentum, rising 6.8% over the past week against a 0.75% decline in the Sensex. The current market price stands at ₹6,405.25, close to its 52-week high of ₹6,430, indicating sustained investor confidence. The stock’s 52-week low was ₹3,841.05, reflecting a strong recovery trajectory over the past year.

Upgrade to Strong Buy Reflects Confidence in Growth Trajectory

Reflecting the company’s improved financial metrics and positive outlook, the Mojo Grade for LTI Mindtree was upgraded from Buy to Strong Buy on 13 January 2026. The company’s Mojo Score stands at a robust 80.0, signalling strong fundamentals and favourable market positioning. The Market Cap Grade remains at 1, indicating a large-cap status with significant market liquidity and investor interest.

The upgrade is supported by the company’s ability to consistently deliver revenue growth and margin expansion, even as the broader sector faces headwinds. LTI Mindtree’s strategic investments in digital transformation services and cloud computing have begun to yield tangible results, driving higher client engagement and contract wins.

Sector and Industry Positioning

Operating within the Computers - Software & Consulting sector, LTI Mindtree is well positioned to capitalise on the increasing demand for IT services and digital solutions. The sector has witnessed mixed performance recently, with some peers struggling to maintain margin levels amid rising costs. LTI Mindtree’s margin expansion to 18.58% in the latest quarter is a notable achievement, setting it apart from many competitors.

Its focus on high-growth verticals such as banking, financial services, and insurance (BFSI), along with diversified service offerings, provides a competitive moat. The company’s ability to innovate and adapt to evolving client needs remains a key driver of its positive financial trend.

Outlook and Investor Considerations

Looking ahead, LTI Mindtree’s positive financial trend is expected to continue, supported by strong order book growth and favourable industry tailwinds. The company’s focus on digital services, automation, and cloud migration aligns well with global IT spending trends. Investors should note, however, that the recent dip in EPS warrants monitoring, as it may reflect short-term factors rather than a fundamental weakness.

Given the company’s strong quarterly performance, upgraded rating, and market outperformance relative to the Sensex, LTI Mindtree remains an attractive proposition for investors seeking exposure to the Indian IT sector. The stock’s proximity to its 52-week high suggests limited downside risk, while the potential for further margin improvement and revenue growth offers upside.

Market participants should also consider broader macroeconomic factors, including currency fluctuations and geopolitical developments, which could impact IT service demand and profitability.

Summary

LTI Mindtree Ltd’s December 2025 quarter marks a significant milestone with record net sales of ₹10,781 crore and operating profit margins expanding to 18.58%. The company’s financial trend has shifted positively, reflected in an upgraded Mojo Grade to Strong Buy and a robust Mojo Score of 80.0. Outperforming the Sensex across multiple time horizons, LTI Mindtree is well positioned to capitalise on growth opportunities in the Computers - Software & Consulting sector. While EPS softness merits attention, the overall outlook remains constructive for investors seeking quality large-cap IT stocks.

Unlock special upgrade rates for a limited period. Start Saving Now →