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Hidden Gem - LTIM – Poised for a superior growth among larger peers

ICICIdirect Research 19 Dec 2025 DISCLAIMER

LTIM is guiding for a much better revenue growth trajectory compared to its larger peers. While most large IT companies are trending towards low to mid-single digit growth, LTIM remains confident of improved momentum in H2, supported by ramp-ups in the PAN 2.0 deal and media segment mega deal, and targets to exit FY26 with double-digit USD revenue growth. We expect ~ 8.6%-dollar revenue CAGR over FY25–28, supported by strong deal momentum and execution rigor.

EBIT margins in Q2 were already at about 15.9%, which is ahead of management’s own plan. This has come from cost actions under the “Fit for Future” margin improvement program and some forex support, and management is confident that margins can move higher from here, despite wage hike ahead. We expect EBIT margins to reach 16.1% in FY28E vs. 14.5% in FY25.
The deal pipeline too remains very strong. Order inflow stood at US$1.6 bn in Q2, up 22% YoY, marking the fourth straight quarter of order inflow of around the US$1.6 bn level. Importantly, deals are coming across all major verticals, giving good visibility for future growth.


Looking ahead, management aims for a medium-term ambition to move closer to double-digit dollar growth. This with its AI-centric strategy through BlueVerse and broad-based growth across geographies, makes LTIM stand out as a higher-growth IT play among larger peers.
We have a target price of ₹7,350 valuing it at 30x FY28E EPS (upside of 18%).

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