LTIMindtree has achieved a major milestone by securing its largest deal to date, fueled by its innovative artificial intelligence (AI) strategy. In Q2 FY25, which ended in September, the company closed multiple multi-year projects, including a significant $200 million deal with a U.S. manufacturer. However, total order intake for the quarter was flat year-on-year at $1.3 billion, reflecting a 7% decline from the previous quarter.
Chief Operating Officer Nachiket Deshpande emphasized the integration of AI into the company’s services, stating that most of the large deals announced in this quarter were a result of this differentiated offering. This approach has enabled LTIMindtree to consolidate client vendors from four to one, reinforcing its market position. The pipeline for large deals stands robust at over $5 billion, with many agreements nearing finalization, primarily in the cost takeout sector where the company is already established.
For Q2 FY25, LTIMindtree reported a 3.2% quarter-on-quarter revenue growth and a 5.9% year-on-year increase, reaching ₹9,432.9 crore, along with a net profit of ₹1,251.6 crore—up 10.3% QoQ and 7.7% YoY.
During the earnings call, management expressed a cautious outlook for the upcoming quarters, anticipating potential seasonal weaknesses in Q3 that could moderate growth momentum. They noted that many GenAI pilots are considered discretionary spending, particularly within the Banking and Financial Services (BFS) sector, which was the primary driver of growth in Q2.
Deshpande also indicated a deferment of the margin target of 17-18% until double-digit revenue growth is achieved, citing uncertainties related to the U.S. elections and political tensions in the Middle East, as well as anticipated wage hikes that may affect margins in Q3.
Overall, while LTIMindtree is navigating a complex economic landscape, its commitment to AI-driven solutions positions it well for future growth.
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