LTIMindtree Shares Drop Over 6% Post Q3 FY26 Results Amid Margin and Visibility Worries

dtree Ltd plunged more than 6% in early trading today, hitting around ₹6,012.50, as investors digested the company's Q3 FY26 results released yesterday. The IT services firm reported in-line performance with revenue growth supported by large deal wins in BFSI, manufacturing, and other segments, alongside strong traction in AI-led offerings. Consolidated revenue rose approximately 11.6% YoY to ₹10,781 crore, while constant currency growth stood at 5.2%. However, net profit declined around 10.5% YoY to ₹971 crore, primarily due to one-time charges from new labour codes (impacting around ₹590 crore). Brokerages noted cautious views on near-term margins and earnings visibility, despite optimism on recovery under new leadership and guidance for double-digit revenue growth by Q4 FY26. CLSA reiterated its 'Outperform' rating with a target of ₹7,067 (over 17% upside), highlighting robust deal ramps and AI benefits offsetting productivity pressures, though limited near-term re-rating scope remains. Other analysts, including those from Nuvama and Motilal Oswal, raised targets citing improving margins over consecutive quarters, record TCV of $1,690 million, and medium-term EPS growth potential, but flagged persistent wage headwinds and transition challenges in FY26.