LTIMindtree’s recently appointed CEO and Managing Director Venu Lambu has expressed confidence in the company’s growth outlook, emphasising that the organisation is entering a phase of stronger revenue expansion along with improvement in operating profit margins over the coming quarters.
Speaking to analysts and employees during the company’s quarterly strategy townhall, Lambu highlighted that LTIMindtree is well-positioned to capitalise on client transformation spends, despite macroeconomic challenges in North America and Europe. “We are confident of delivering sequential growth in the upcoming quarters. Our margin improvement plan is already underway and will yield results,” he said.
LTIMindtree’s Growth Strategy Under New CEO
Venu Lambu took charge as CEO of LTIMindtree in May 2025 after the resignation of former MD & CEO Debashis Chatterjee. Lambu, who previously served as President and Executive Board Member at Cognizant, has been tasked with accelerating LTIMindtree’s revenue growth, integrating service lines efficiently, and enhancing profitability.
Key pillars of Lambu’s growth strategy include:
- Client-centricity with sector-focused verticals: Strengthening presence in banking & financial services, insurance, manufacturing, and hi-tech
- Hyperautomation and AI-led offerings: Leveraging generative AI, cloud modernisation, and data platforms to drive differentiated solutions
- Margin improvement plan: Focus on utilisation optimisation, pyramid restructuring, subcontractor cost rationalisation, and offshore leverage
- Integrated delivery model: Driving synergies post the L&T Infotech and Mindtree merger to deliver end-to-end transformation deals efficiently
Company Financial Snapshot: Q1 FY26
| Financial Metric | Q1 FY26 | Q4 FY25 | QoQ Change (%) | YoY Change (%) |
|---|---|---|---|---|
| Revenue (₹ crore) | 9,265 | 9,110 | +1.7 | +5.4 |
| Revenue (USD million) | 1,115 | 1,096 | +1.7 | +4.2 |
| EBIT Margin (%) | 16.2 | 15.5 | +70 bps | -80 bps |
| Net Profit (₹ crore) | 1,272 | 1,228 | +3.6 | +2.9 |
| Order Book (USD billion) | 1.5 | 1.4 | +7.1 | +6.5 |
Lambu stated that while discretionary spending remains muted in select segments, clients are accelerating technology investments for cost take-out, operational resilience, and digital transformation.
Segment-wise Performance
Revenue Contribution by Industry Vertical (Q1 FY26)
| Vertical | Revenue Share (%) | Key Highlights |
|---|---|---|
| BFSI | 31 | Core banking modernisation, risk analytics |
| Hi-Tech & Media | 24 | Cloud transformation, product engineering |
| Manufacturing | 18 | Smart factory, IoT, MES implementations |
| Retail & CPG | 14 | Digital commerce, supply chain visibility |
| Others (Travel, Energy, etc.) | 13 | Process automation, data modernisation |
The company’s banking and hi-tech verticals have delivered stable performance, while manufacturing has seen robust traction due to global industrial automation initiatives.
Profitability Improvement Plan
Lambu outlined a comprehensive margin enhancement roadmap focusing on:
- Optimising pyramid structure: Increasing fresher intake and upskilling mid-level talent to reduce delivery cost
- Offshoring leverage: Shifting select high-cost onsite work to offshore centres in India and nearshore hubs
- Subcontractor cost rationalisation: Improving vendor management and converting subcontractor roles to permanent positions where feasible
- Hyperautomation: Implementing AI-based tools across internal processes to reduce manual overheads
He added, “Our aspiration is to achieve EBIT margins closer to pre-merger levels of 17-18% over the next 4-6 quarters through disciplined execution and revenue momentum.”
Analyst Commentary
Brokerages remain positive on LTIMindtree post leadership transition. An analyst at a leading domestic brokerage said:
“With Venu Lambu’s strong client-facing experience and sharp focus on operational excellence, LTIMindtree is expected to stabilise growth in FY26 and expand margins gradually. Its deal pipeline remains healthy despite market softness in select sectors.”
However, analysts also highlighted key risks including:
- Continued slowdown in North American discretionary IT spends
- Talent attrition challenges impacting project delivery
- Competitive pricing pressure in large outsourcing deals
Deal Wins and Pipeline
LTIMindtree reported strong deal momentum in Q1 FY26 with a total contract value (TCV) of USD 1.5 billion, including:
- A multi-year core banking platform modernisation deal with a leading European bank
- A global IT infrastructure and workplace transformation programme for a US-based hi-tech client
- Smart factory and IoT implementation for an industrial manufacturing major in Germany
Lambu noted that the pipeline remains robust across BFSI, manufacturing, and hi-tech verticals, with multiple large deal pursuits in advanced stages of closure.
Employee and Talent Outlook
LTIMindtree’s total headcount stood at 84,210 as of June 2025. The company maintained a quarterly annualised voluntary attrition rate of 16.8%, which is stable compared to previous quarters. Lambu emphasised continued investments in skilling and leadership development to align with the company’s integrated operating model.
Market Share and Competitive Position
LTIMindtree ranks among the top five IT services firms in India by revenue post the L&T Infotech and Mindtree merger. It continues to strengthen its market share in digital transformation deals, leveraging combined domain expertise and client relationships.
Top Indian IT Companies by Q1 FY26 Revenue (USD million)
| Company | Revenue (USD mn) | EBIT Margin (%) |
|---|---|---|
| TCS | 7,520 | 24.2 |
| Infosys | 5,015 | 20.8 |
| HCLTech | 4,170 | 19.3 |
| Wipro | 2,805 | 15.1 |
| LTIMindtree | 1,115 | 16.2 |
Outlook for FY26
The company has retained its medium-term aspiration of double-digit revenue growth with EBIT margins improving towards the higher end of the mid-teens. Lambu concluded, “We are building a strong pipeline, strengthening client relationships, and enhancing delivery capabilities. The outlook is promising, and we will continue to focus on operational excellence and value creation for stakeholders.”
Disclaimer
This news content is for informational purposes only. It is not intended as investment advice. Readers are advised to consult financial experts before making any business or investment decisions based on this report.
