LTIMindtree reported a strong first quarter for FY27, with revenue at $1.2 billion, up 0.3 per cent quarter-on-quarter in constant currency terms. In rupee terms, revenue rose 18 per cent year-on-year. Adjusted net profit came in at around Rs 1,470 crore, up 9.5 per cent quarter-on-quarter and 17.1 per cent year-on-year, while earnings before interest and taxes (EBIT) margin stood at 15.5 per cent, up 27.9 per cent year-on-year in rupee terms.
Performance varied across the IT major’s business verticals. The production vertical saw a seasonal decline of 5.7 per cent quarter-on-quarter, and the consumer vertical slipped 0.7 per cent quarter-on-quarter due to a delayed ramp-up of an India PAN card project. Banking, financial services and insurance rose 3.2 per cent quarter-on-quarter, while the technology and services vertical climbed 3.4 per cent quarter-on-quarter.
A wage hike during the quarter added roughly 100 basis points of cost pressure, but this was offset by currency gains, helping the company protect its margins. LTIMindtree is also integrating Randstad Technology and Consulting Services, an acquisition announced in May 2026. Management expects the integration to cause some near-term margin instability before it drives margin expansion once complete.
The company’s EBIT margin improved by 120 basis points from 14.3 per cent in the same quarter last year. Its operating cash flow-to-net profit ratio stood at 79 per cent, down from 96 per cent in the fourth quarter of FY26, while free cash flow-to-net profit came in at 63 per cent, down from 75 per cent in the same period. Both declines were linked to a one-time non-cash valuation gain on the company’s investment in Voicing AI, which had inflated net profit in the prior quarter.
The India PAN card project, which weighed on the consumer vertical this quarter, remains on track to gain pace in the second quarter of FY27. Its progress is contingent on hardware and memory chip shipments normalising after recent supply constraints.
Despite macroeconomic uncertainties, LTIMindtree’s management has guided for stronger growth in FY27 compared with FY26, citing the company’s healthy deal pipeline and improving margins as key drivers.