Steady Profit Growth Amidst Modest Revenue Gains and Stable Margins
LTIMindtree Ltd, a leading information technology services firm, reported its financial results for the fourth quarter of FY25, posting a 2.6% year-on-year (YoY) increase in consolidated net profit to ₹1,128.5 crore. This figure edged slightly above the ₹1,107 crore reported in the same quarter last year and marked a 3.9% sequential increase over Q3’s net profit of ₹1,086.7 crore.
The company’s board also declared a final dividend of ₹45 per share of Re 1 face value for FY25, underlining confidence in its financial stability and long-term earnings trajectory. Investor sentiment appeared optimistic ahead of the earnings release, with LTIMindtree’s stock rallying over 5% on April 22, closing at ₹4,537.9 on the NSE.
Highlights:
Q4 FY25 net profit: ₹1,128.5 crore, up 2.6% YoY, 3.9% QoQ.
Final dividend declared: ₹45 per share of Re 1 face value.
Stock rose over 5% ahead of earnings release.
Revenue Grows Nearly 10% YoY; USD Revenue Declines Sequentially
LTIMindtree’s consolidated revenue for the January–March 2025 quarter rose 9.9% YoY to ₹9,771.7 crore, and 1.1% sequentially, reflecting sustained client demand despite macroeconomic volatility. However, in US dollar terms, revenue came in at $1.13 billion, down 0.7% quarter-on-quarter, though still up 5.8% YoY, indicating currency volatility and potentially delayed offshore ramp-ups.
On a full-year basis, the company reported 7% revenue growth, taking its FY25 consolidated top line to ₹38,008 crore. The FY25 net profit, however, grew just 0.4% to ₹4,602 crore, underscoring pressure on margins and the impact of higher operational costs through the fiscal.
Highlights:
Q4 revenue: ₹9,771.7 crore, up 9.9% YoY, 1.1% QoQ.
FY25 full-year revenue: ₹38,008 crore; net profit: ₹4,602 crore.
USD revenue for Q4: $1.13 billion, down 0.7% QoQ.
Margins Remain Stable QoQ but Decline from Year-Ago Levels
The company posted an EBIT margin of 13.8% for Q4 FY25, unchanged from the December quarter, but lower than the 14.7% margin in Q4 FY24. For the full year, LTIMindtree maintained an EBIT margin of 14.5%, showcasing stable operational efficiency despite rising wage costs, currency fluctuations, and onboarding expenses.
A notable improvement was observed in foreign exchange gains, which surged to ₹232 crore in Q4, significantly higher than ₹132 crore in Q3 and reversing a loss of ₹16.4 crore in the same quarter last year. This helped offset margin pressures to an extent and contributed positively to bottom-line growth.
Highlights:
Q4 EBIT margin: 13.8%, flat QoQ but down from 14.7% YoY.
FX gains rose to ₹232 crore in Q4 from a loss of ₹16.4 crore YoY.
FY25 EBIT margin: 14.5%.
AI-Led Deal Wins Drive Order Book; Client Metrics Remain Stable
CEO and MD Debashis Chatterjee emphasized that the company’s AI-centric solutions continue to gain traction across verticals. “The robust order inflow, driven by a significant array of AI-led deal wins, illustrates the pervasive integration of AI across our service offerings,” he stated. The company is leveraging artificial intelligence to strengthen its cloud, data analytics, and digital transformation practices.
The client base remained broadly stable, with 741 active clients as of March 31, 2025, compared to 742 in the previous quarter. LTIMindtree added two new clients in Q4, far fewer than the 30 added during the same period a year ago. Notably, it added one new client each in the $5 million+ and $50 million+ revenue segments, raising the totals in those brackets to 154 and 14 clients, respectively.
Highlights:
741 active clients in Q4 FY25 vs. 742 in Q3.
Two new clients added in Q4; 30 added in Q4 FY24.
Strong AI-led deal momentum highlighted by the CEO.
Employee Base and Attrition Rate Reflect Stable Talent Management
LTIMindtree reported a headcount of 84,307 professionals at the end of Q4 FY25. The company continues to focus on improving employee engagement and retention, with the trailing 12-month attrition rate at 14.4%, a level that reflects improving stability in the IT job market after a volatile hiring cycle in the post-pandemic years.
As the industry adjusts to changing client demand and a more normalized delivery environment, managing utilization, wage costs, and attrition remains central to the company’s strategic focus.
Highlights:
Total headcount: 84,307 as of March 31, 2025.
TTM attrition rate: 14.4%, signaling improving retention.
