Source: Business Standard
LTIMindtree shares jumped over 7% on Monday after the company announced a seven-year strategic contract worth $450 million with a large global agribusiness company – its largest deal to date.
Shares rose as much as 7.7% intraday to ₹4,977/share, their highest level since February 2025, before closing 6.8% higher at ₹4,940. The stock’s advance beat the 3.5% rise in the Nifty 50, giving it a fourth consecutive day of positive trading. However, despite some recent momentum, LTIMindtree shares remain down 11% for the year, compared to a 4.5% gain in the broader index.
Strategic ideas
In a recent regulatory filing, LTIMindtree says that it has entered into a multi-year deal with a major agribusiness firm. The agreement covers the full range of IT services, including application management, infrastructure support, and cybersecurity, through an AI-enhanced operating model.
The solution will leverage SAP S/4HANA, ServiceNow, Microsoft Azure, and proprietary AI technologies developed by LTIMindtree. The purpose of the program is to improve the client’s global scale, operational efficiencies and long-term growth. It said in the exchange filing.
“This comprehensive suite of future-ready IT services, built on platforms such as SAP S/4HANA, ServiceNow, Microsoft Azure, as well as proprietary AI frameworks, is aimed at enhancing the client’s operational efficiency, scalability, and global growth.”
Securing this large deal marks a pivotal milestone as we transform into an AI-driven business model, helping our clients enhance productivity,
Venu Lambu, chief executive officer (designate) and whole-time director of LTIMindtree, said in the statement “We are proud to be the trusted partner for one of the world’s most respected agribusiness companies.”
Market Reaction and Valuation
The deal announcement improved investor sentiment and lifted the company’s market capitalization to ₹1.47 trillion, per BSE data. Analysts also said the announcement demonstrates that LTIMindtree is increasingly becoming important in the consolidation of IT services based on a differentiated AI-first strategy.
Financial Highlights: Q4FY25
LTIMindtree has announced its financial results for the fourth quarter of FY25, recording a ₹1,128.5 crore net profit, an increase of 2.6% year-on-year. The profit was up 3.9% sequentially. Revenue for the quarter was ₹9,771.7 crore, a year-on-year increase of 9.9% and a quarterly increase of 1.1%.
For the full fiscal year, revenue grew 7% to ₹38,008.1 crore, with net profit increasing by 0.4% to ₹4,602 crore. Revenue for North America, LTIMindtree’s most important geography, grew by 6.8%, while European markets reduced overall growth with a 1.5% decline. LTIMindtree ended FY25 with 741 clients, unchanged from the last quarter.
Looking Forward
LTIMindtree has set a long-term revenue milestone of $10 billion by FY32. LTIMindtree is focused on increasing its footprint among the Fortune 500, especially with strategic partners like Microsoft.
Analysts view this new deal as a meaningful step toward that ambition, reflecting LTIMindtree’s position as a leader in the delivery of the scalable, AI-driven digital transformation.
