In his first year as CEO, LTIMindtree reported its fastest growth in three years with revenue jumping 6% to $4.76 billion in FY26, compared to 4.8% in the previous fiscal year. The company's net profit increased 11.3% to $606 million in FY26, with much of the growth attributed to its largest deal - a six-year IT transformation contract valued at $585 million from New York-based entertainment company Paramount Global. CEO Venu Lambu expressed satisfaction with the performance, stating "I'm very happy about what we have achieved. I would probably say I have had more hits for FY26." However, investor sentiment remains weak with the company's shares falling 34% since the start of the year, the steepest decline among India's 10 largest IT services companies.
CEO Venu Lambu acknowledged investor concerns about AI's impact on IT services, stating that "there is a sectoral outlook, which I believe is overstated on the negative side." He emphasized that "the notion that the entire IT services businesses will disappear is not the case. It will be re-imagined and remodelled." Lambu attributed the negative sentiment to "only one side of the narrative is heard when it comes to AI" and believes the IT sector needs to outperform expectations. The company expects to double its revenue to $10 billion by March 2031, a year ahead of its original timeline. Lambu argues that "enterprises will continue to spend on technology if AI investments deliver business context, cost efficiency and measurable returns."
LTIMindtree announced its first acquisition since formation, purchasing Randstad's technology and consulting business for $180 million. According to ICICI Securities analysts, the acquisition is expected to increase the company's European footprint, which represents about 15% of its business or $710 million. The deal provides access to marquee clients in Europe and Australia, with Lambu noting "the first contour of the deal is how we can grow faster in Europe, and access to the kind of customers we're going to get access to, whether it's in Australia, France and Germany." The acquisition also includes a strategic GCC angle, where Randstad's clients are happy to have a partner who can provide them with a full set of capabilities. Management expects to integrate 2,700 Randstad employees while maintaining flat or negative lateral hiring in the core business.
The company ended last year with 87,950 employees, up by 3,643 from the preceding year. According to Lambu, the company added approximately 6,600 freshers last year and expects similar hiring levels this year. The CEO indicated that "we cut lateral headcount last year, so I would expect the same thing for this year" and expects the lateral layer to remain flat or negative. Lambu noted that "we deferred hikes over two quarters last year, so that is completed. For FY27, it's just started, so we'll see." The company has increased local hiring in the US and reduced dependence on H-1B workers while not facing material impact from green card rules.
