The LTM, which was earlier known as LTIMindtree, shares dropped over 8% to the day’s low of Rs 3,993 on the NSE, a day after the company’s Investor Day presentation. The stock came under pressure after management indicated that Artificial Intelligence could potentially disrupt parts of its core revenue. Following the presentation, brokerages remained divided on the stock. While Jefferies retained its ‘Underperform’ rating, Motilal Oswal sees a 25% upside potential in the mid-tire IT service stock. 

Jefferies on LTM

Jefferies maintained its ‘Underperform’ rating on LTM after its Investor Day, while retaining its price target at Rs 3,500. This indicates a downside of 17% from the current market price.

AI could shrink one market while creating another

One of the biggest themes discussed during the Investor Day was the impact of AI on the global technology services industry.

The brokerage house said that the company indicated that AI-led disruption could deflate core IT service revenues by 25%, but AI will expand the addressable market by $1.3 trillion, driven by Platformised IT and Business AI services. 

“LTM’s plans to pivot to outcome-based offerings require a material change to pricing and talent strategy which may not be easy to execute. In this context, its aspirations to double revenues by 2031 with 200 basis points margin expansion seem very optimistic,” added Jefferies report. 

The company believes new opportunities could emerge through what it calls Platformised IT Services, Business AI Services and AI-led Digital Engineering.

According to the brokerage report, LTIMindtree estimates these new segments could expand the industry’s total addressable market by nearly US$1.3 trillion, potentially offsetting the disruption facing traditional technology services.

Motilal Oswal on LTM

On the other hand, Motilal Oswal Financial Services has a target price of Rs 5,400 on LTM, implying an upside of 25%. The brokerage retained its ‘Buy’ rating on the stock as it believes that productivity pain for key accounts is behind, which could be positive as against peers in the next couple of years.

The brokerage firm said that it is seeing early signs of a different template emerging – platform-led, AI-native players (for example, efforts like OpenAI’s DeployCo or similar structures from Anthropic). The brokerage will keep an eye for vendors who can move in that direction.

“We think this is a phase where acquisitions need to be more capability-led, especially around AI, rather than just geography or accounts. The next 12-18 months could see more M&A focused on building such capabilities,” said the broker.

While growth acceleration remains measured at 7-8% over FY27-FY28 and the recovery in the top BFSI account is likely to be gradual, strong deal wins and a robust pipeline provide visibility.

“We believe LTIMindtree’s estimated EPS CAGR of 14% for the next two years remains meaningfully better than that of large-caps,” said Motilal Oswal.

LTM Q4FY26

The company’s net profit came in at Rs 1,387 crore in Q4FY6, up 44.6% sequentially.

Its revenue rose 4.7% sequentially to Rs 11,291.7 crore. Constant currency growth came in at 1.4%, even as margins remained under pressure.

On the operating front, EBIT came in at Rs 1,709.4 crore, but margins contracted to 15.1% from 16.1% in the previous quarter.

LTM’s share price performance

The share price of LTM has fallen 0.40% in the last 5 days.The stock has declined 3.62% in the past one month and 9.2% over the last six months.