1. At a Glance
LTIMindtree—India’s 5th-largest IT services giant—has scale, pedigree (L&T Group), and some of the best ROEs in tech. But with a P/E flirting with 33x and profit growth that’s… meh, are investors chasing a marathoner pretending to sprint?
2. Introduction with Hook
Imagine Infosys and Mindtree had a baby, and TCS was the elder cousin judging silently from the corner. LTIMindtree is the result: agile, talented, decently profitable—and increasingly expensive.
- Q1 FY26 PAT: ₹1,255 Cr (+10.5% YoY)
- ROCE: 28%
- Dividend payout: A shareholder’s delight at 42%
Yet, revenue growth is slowing, promoter holding is gently eroding, and one wonders: is this the golden goose or just another duck in a TCS costume?
3. Business Model (WTF Do They Even Do?)
LTIMindtree’s bread and butter includes:
- Digital Transformation: Legacy to cloud migrations, AI/ML integration, data analytics.
- Enterprise Services: SAP, Oracle, Microsoft partnerships.
- Cloud & Infrastructure: AWS, Azure, GCP-focused delivery.
- Industry Focus: BFSI, Manufacturing, Energy, Retail, and Hi-Tech.
It’s consulting-meets-coding with a dollop of “Let’s automate everything.”
4. Financials Overview
| Metric (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 33,183 | 35,517 | 38,008 |
| EBITDA | 6,108 | 6,387 | 6,495 |
| PAT | 4,410 | 4,585 | 4,602 |
| OPM % | 18% | 18% | 17% |
| EPS | 149.0 | 154.7 | 155.2 |
Notes:
- Margins are stable-ish, but have refused to cross the 20% peak club.
- PAT has grown barely 3% in FY25. That P/E of 32.6x is looking a bit heavy, no?
5. Valuation
- Current Price: ₹5,194
- P/E: 32.6x
- P/B: 6.8x
- Dividend Yield: 1.25%
EduFair™ Valuation Range (Based on EPS 160 & 22–28x multiple):
→ ₹3,520 – ₹4,480
LTIM is priced to perfection. Anything less than double-digit growth, and this premium valuation cracks like overcooked Maggi.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26: ₹9,840 Cr revenue (+7.6% YoY), PAT ₹1,255 Cr
- Digital transformation deals: Expanding in Europe & BFSI verticals
- Promoter stake has declined: from 74% to 68.57% in 3 years
- Attrition control: Improving margins via cost discipline
- ESOP allotment: Employee retention via generous stock candy
Red Flags?
- Revenue CAGR slowing
- No breakout geographies or moonshot AI products (yet)
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹30 Cr |
| Reserves | ₹22,669 Cr |
| Borrowings | ₹2,187 Cr |
| Other Liabilities | ₹5,712 Cr |
| Fixed Assets | ₹5,285 Cr |
| Investments | ₹9,845 Cr |
| Total Assets | ₹30,598 Cr |
Insights:
- Near-zero debt until FY22—borrowings post-merger are well managed.
- Cash-rich with nearly ₹10,000 Cr in investments.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY23 | ₹3,095 Cr | ₹-271 Cr | ₹-1,932 Cr | ₹892 Cr |
| FY24 | ₹5,670 Cr | ₹-3,918 Cr | ₹-2,269 Cr | ₹-518 Cr |
| FY25 | ₹4,546 Cr | ₹-1,729 Cr | ₹-2,574 Cr | ₹242 Cr |
Commentary:
- Strong operating cash.
- Healthy reinvestment.
- Payouts + buybacks comfortably funded.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 28% |
| ROE | 21.5% |
| Dividend Payout | 42% |
| Debt/Equity | 0.09 |
| Cash Conversion Cycle | 56 days |
Verdict:
These ratios are so good, they belong on a Tinder profile for finance nerds.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT | EPS |
|---|---|---|---|---|
| FY23 | ₹33,183 Cr | ₹6,108 Cr | ₹4,410 Cr | ₹149 |
| FY24 | ₹35,517 Cr | ₹6,387 Cr | ₹4,585 Cr | ₹155 |
| FY25 | ₹38,008 Cr | ₹6,495 Cr | ₹4,602 Cr | ₹159 |
Insight:
Flat PAT growth despite topline improvement? Either they’re reinvesting heavy, or margin ceiling has hit its head.
11. Peer Comparison
| Company | Rev (Cr) | PAT (Cr) | ROE % | P/E | Div Yield |
|---|---|---|---|---|---|
| TCS | 2,56,148 | 49,273 | 52.4 | 23.6 | 1.87% |
| Infosys | 1,62,990 | 26,516 | 28.8 | 24.8 | 2.72% |
| HCL Tech | 1,19,347 | 16,976 | 25.2 | 24.7 | 3.5% |
| LTIMindtree | 38,008 | 4,602 | 21.5 | 32.6 | 1.25% |
Takeaway:
LTIM’s ROE is competitive, but its valuation is almost in startup fantasy land.
12. Miscellaneous – Shareholding, Promoters
| Stakeholder | % Holding (Jun 2025) |
|---|---|
| Promoter | 68.57% |
| FIIs | 7.00% |
| DIIs | 15.51% |
| Public | 8.82% |
- Declining promoter stake: -5.48% over 3 years.
- DII Confidence: Consistent climb.
- Retail holding: Stable, small, but growing fan club.
13. EduInvesting Verdict™
LTIMindtree is the software guy your parents want you to marry: well-behaved, high earning, and comes from a respected family (L&T). But ask yourself—are you marrying for love (valuation), or because your dad likes his Excel sheet?
The fundamentals are strong. But with slowing profit growth and a sky-high P/E, the stock has priced in perfection and a bit of divinity. Still, if margins go back to 20%, and digital mega deals rain in from the US and Europe—this could easily outperform.
Metadata
– Written by EduInvesting Analyst | 17 July 2025
– Tags: LTIMindtree, IT Services, Tech Stocks, Q1 FY26, Mindtree Merger, ROE Royalty, EduInvesting Premium Research
