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LTM (formerly LTIMindtree) – Q4 FY26 Financial Results – 23-Apr-26

LTIMindtree exits FY26 with record Q4 revenue and margin recovery, yet cost overruns outpace topline. BFSI compression and TMC stagnation weigh near term. Strong FCF and fortress balance sheet support compounder status, but FY27 re‑rating hinges on cost rationalisation and BFSI momentum.

1–2 minutes

🔍 Observations

Topline

Revenue from operations hit ₹1,12,917 mn in Q4FY26, up 15.6% YoY (vs ₹97,717 mn in Q4FY25) and 4.7% QoQ — the strongest sequential print in FY26, signalling accelerating demand recovery.
Full-year FY26 revenue of ₹4,23,076 mn grew 11.3% YoY (vs ₹3,80,081 mn in FY25), with the growth rate weighted toward H2, suggesting deal ramp-ups gained momentum through the year.
Manufacturing & Resources (₹85,478 mn, +18.5% YoY) and Consumer Business (₹64,875 mn, +19.2% YoY) emerged as the fastest-growing verticals, offsetting slower growth in BFSI and TMC.

Bottomline

Q4FY26 PAT of ₹13,873 mn grew 22.9% YoY (vs ₹11,286 mn), with the sequential jump from ₹9,596 mn in Q3FY26 distorted by Q3’s exceptional Labour Code charge of ₹5,903 mn; underlying PAT progression is cleaner on EBIT.
FY26 PAT of ₹49,827 mn grew 8.3% YoY (vs ₹46,020 mn), a deceleration from topline growth — driven by a 6.8% rise in employee costs and a 22.9% spike in other expenses compressing flow-through.
Diluted EPS expanded from ₹155.00 in FY25 to ₹169.13 in FY26 (+9.1% YoY), providing modest but consistent earnings-per-share accretion on a stable share count.

Margins

Q4FY26 EBIT margin (segment EBIT ÷ revenue): ₹19,730 ÷ ₹1,12,917 = 17.5%, up from 16.3% in Q4FY25 (₹15,962 ÷ ₹97,717) — a meaningful 120 bps YoY recovery.
FY26 EBIT margin: ₹75,552 ÷ ₹4,23,076 = 17.9%, broadly flat vs FY25 at 17.1% (₹64,949 ÷ ₹3,80,081) — sub-contracting costs (+22.9% YoY to ₹32,369 mn) and other expenses (+22.8% YoY to ₹52,286 mn) remain structural headwinds.
Net profit margin for FY26: ₹49,827 ÷ ₹4,23,076 = 11.8%, down from 12.1% in FY25 — cost inflation is outpacing operating leverage, limiting margin expansion.

Growth Trajectory

Sequential revenue acceleration (Q2→Q3→Q4 FY26) confirms demand recovery is broadening across verticals — not concentrated in a single segment.
BFSI, the largest segment (35.2% of FY26 revenue), grew only 8.5% YoY — a relative drag; recovery here is essential for the next leg of overall growth.
Healthcare & Public Services grew 14.9% YoY in revenue but delivered flat EBIT (₹3,303 mn vs ₹3,362 mn in FY25) — scale yet to translate into profitability.

INFY – Infosys Ltd – Q4 FY26 Financial Results – 23-Apr-26

Infosys’ FY26 shows revenue acceleration, 10.2% PAT growth (15%+ ex‑exceptional), and strong FCF funding ₹36,711 Cr returns. FY27 hinges on receivable build, margin pressure in Energy/Life Sciences, and OCF conversion amid large deal ramp‑ups. Re‑rating depends on Hi‑Tech/Life Sciences inflection and DSO normalization.

1–2 minutes

🔍 Observations

Topline

Q4FY26 revenue at ₹46,402 Cr grew 13.4% YoY (vs ₹40,925 Cr) and 2.0% QoQ — strongest quarterly print in recent history, validating demand recovery across verticals.
FY26 full-year revenue reached ₹1,78,650 Cr, up 9.6% YoY (vs ₹1,62,990 Cr) — re-acceleration after a subdued FY25, signalling durable deal ramp-up.
Financial Services (₹49,908 Cr, +10.5% YoY) and Manufacturing (₹29,078 Cr, +15.4% YoY) led segment growth; Communication added ₹2,657 Cr YoY (+13.9%), emerging as a high-momentum vertical.

Bottomline

Q4FY26 PAT at ₹8,509 Cr grew 20.9% YoY (vs ₹7,038 Cr) — sharpest quarterly earnings jump in the dataset, driven by operating leverage and lower effective tax.
FY26 PAT at ₹29,474 Cr rose 10.2% YoY (vs ₹26,750 Cr); excluding Q3FY26 Labour Code exceptional charge of ₹1,289 Cr, normalised PAT growth is closer to 15%.
Basic EPS expanded to ₹71.58 for FY26 vs ₹64.50 in FY25 (+11.0% YoY), further boosted by buyback-driven share count reduction.

Margins

Q4FY26 EBIT margin (segment profit before unallocables): Total segment profit ₹11,167 Cr on revenue ₹46,402 Cr = 24.1%, up from 24.1% in Q4FY25 — stable despite wage pressures.
FY26 PBT margin: ₹39,995 Cr on total income ₹1,82,972 Cr = 21.9% vs ₹37,608/₹1,66,590 = 22.6% in FY25 — marginal compression partly due to the Labour Code charge; on a pre-exceptional basis, PBT of ₹41,284 Cr = 22.6%, flat YoY.
Employee cost as % of revenue: FY26 = 53.2% (₹95,094/₹1,78,650) vs FY25 = 52.7% — modest creep, offset by sub-contractor optimisation (cost of technical sub-contractors as % of revenue held at 8.6%).

Growth Trajectory

Revenue CAGR implied over FY25→FY26 at 9.6% marks an acceleration vs prior muted cycles; Q4 exit rate of ₹46,402 Cr annualises to ~₹1,85,608 Cr, implying ~3.9% organic growth runway into FY27.
FY26 EPS growth of 11.0% outpaced revenue growth of 9.6% — confirms operating leverage is intact and capital return (buyback) is accretive to per-share metrics.
Hi-Tech segment (₹13,928 Cr, +6.4% YoY) and Life Sciences (₹12,267 Cr, +3.7% YoY) remain structural laggards; recovery here would expand the growth ceiling meaningfully.

TECHM – Tech Mahindra – Q4 FY26 Financial Results – 22-Apr-26

Tech Mahindra’s FY26 shows 120 bps EBITDA margin expansion and 13% PAT growth, with Q4 cleanly strongest. Yet ₹12,210 Mn working capital drag and 83.8% payout strain buffers. FY27 durability hinges on DSO and OCF conversion quality sustaining the earnings recovery.

1–2 minutes

🔍 Observations

Topline

Revenue from operations hit ₹150,761 Mn in Q4FY26, up 12.6% YoY (vs ₹133,840 Mn in Q4FY25) and 4.7% QoQ — the strongest quarterly print in the disclosed period, signalling demand recovery is gaining traction.
IT segment drove ₹126,608 Mn (84% of Q4FY26 revenue); BPS contributed ₹24,153 Mn (16%) — both segments accelerated sequentially.
Full-year FY26 revenue of ₹568,154 Mn grew 7.2% YoY (vs ₹529,883 Mn in FY25), confirming a steady re-acceleration after prior-year softness.

Bottomline

Q4FY26 PAT of ₹13,564 Mn surged 18.8% YoY (vs ₹11,419 Mn) and 21.3% QoQ (vs ₹11,186 Mn) — the cleanest quarter in the set, with no exceptional items distorting the read.
FY26 PAT of ₹48,055 Mn grew 13.0% YoY (vs ₹42,530 Mn), with owner-attributable profit at ₹48,109 Mn, tightly aligned — minority drag is negligible.
Q3FY26 PAT was suppressed by a ₹2,724 Mn exceptional item; ex-exceptional, Q3 PBT would have been ₹17,775 Mn vs reported ₹15,051 Mn — Q4 momentum is therefore organic.

Margins

Q4FY26 EBITDA (PBT + Tax + Finance Costs + D&A): ₹17,906 + ₹4,342 + ₹888 + ₹4,811 = ₹27,947 Mn on revenue of ₹150,761 Mn → EBITDA margin of 18.5%, up from 14.5% in Q4FY25 (EBITDA ₹19,349 Mn / ₹133,840 Mn).
FY26 EBITDA: ₹65,731 + ₹17,676 + ₹3,374 + ₹18,816 = ₹105,597 Mn on ₹568,154 Mn revenue → 18.6% EBITDA margin, vs FY25 EBITDA of ₹92,280 Mn / ₹529,883 Mn = 17.4% — 120 bps annual expansion.
FY26 net margin: ₹48,055 / ₹568,154 = 8.5% vs FY25 ₹42,530 / ₹529,883 = 8.0% — 50 bps improvement; employee costs as % of revenue fell from 55.9% to 53.6%, the primary lever.

Growth Trajectory

Segment results grew faster than revenue: Total segment results up 16.4% YoY in FY26 (₹110,158 Mn vs ₹94,632 Mn), implying operating leverage is kicking in.
BPS segment results grew 25.7% YoY in FY26 (₹14,990 Mn vs ₹11,923 Mn) — disproportionate profit contribution from a smaller revenue base signals mix improvement.
Basic EPS expanded from ₹48.00 in FY25 to ₹54.28 in FY26, a 13.1% YoY gain — earnings quality is clean, with dilution from stock options minimal (diluted EPS ₹54.19).

TATAELXSI – Tata Elxsi – Q4 FY26 Financial Results – 21-Apr-26

Tata Elxsi’s FY26 saw flat revenue and ~440 bps margin hit from cost inflation, with ~10% earnings decline in core verticals. Q4 rebound offers hope, but FY27 hinges on sustained topline recovery. Debt‑free, cash‑rich balance sheet limits downside, yet premium valuation demands earnings revival.

1–2 minutes

🔍 Observations

Topline

Revenue from operations grew a modest 0.76% YoY in FY26 (₹3,729 Cr → ₹3,757 Cr), signalling demand-side stagnation despite sequential recovery in Q4.
Q4FY26 revenue of ₹993.75 Cr grew 9.4% YoY and 4.2% QoQ — the strongest sequential print of the year, suggesting early-stage re-acceleration.
Other income remained a meaningful contributor at ₹184 Cr (FY26), reflecting treasury yield on the large cash/deposit base.

Bottomline

Reported PAT collapsed 20% YoY (₹784.94 Cr → ₹628.43 Cr) in FY26, heavily distorted by a ₹95.69 Cr exceptional item in Q3FY26.
Excluding the exceptional, pre-tax profit still declined ~10.4% YoY (₹1,028 Cr → ₹920.8 Cr), indicating genuine margin pressure independent of one-offs.
Q4FY26 PAT of ₹220.35 Cr grew 27.8% YoY and 102% QoQ — a strong recovery print that partially restores confidence.

Margins

EBITDA margin (pre-exceptional, ex-other income) compressed sharply: operating costs grew 4.9% while revenue was nearly flat, squeezing core profitability.
Employee costs as a percentage of revenue climbed to 58.1% in FY26 vs. 54.9% in FY25 — the primary margin headwind and key variable to watch.
Net profit margin contracted to 16.7% in FY26 from 21.1% in FY25 (on operating revenue basis), a ~440 bps deterioration.

Growth Trajectory

FY26 was a consolidation year: near-zero topline growth with double-digit cost inflation — a structurally concerning combination for a premium-valued IT services name.
Q4FY26 trajectory (revenue, PAT both inflecting upward YoY) offers a plausible base for FY27 recovery, contingent on demand visibility improving.
EPS fell from ₹126 to ₹100.89 YoY, eroding the earnings yield that justifies Tata Elxsi’s historically high PE multiples.

HCLTECH – HCL Technologies – Q4 FY26 Financial Results – 21-Apr-26

HCL Tech’s FY26 ends with record revenue but margin compression, rising receivables, and PAT hit by labour code. Fortress balance sheet and capex discipline stand out. FY27 hinges on outsourcing cost and receivables normalization—long‑term risk‑reward is sound, near‑term catalyst is margin inflection.

1–2 minutes

🔍 Observations

Topline

Revenue from operations surged 11.2% YoY to ₹1,30,144 Cr in FY26, with Q4FY26 clocking ₹33,981 Cr — up 12.3% YoY, signalling sustained demand acceleration into year-end.
Sequential Q4 revenue was flat (+0.3% QoQ), suggesting growth is broad-based annual rather than quarter-specific sprint.
Other income fell sharply to ₹1,530 Cr vs ₹2,485 Cr in FY25 (-38.5%), partly offsetting operational momentum at the total income level.

Bottomline

PAT declined 4.3% YoY to ₹16,652 Cr in FY26, weighed by a ₹956 Cr one-time exceptional charge (New Labour Codes) in Q3FY26; stripping this out, underlying profitability holds relatively stable.
Q4FY26 PAT of ₹4,490 Cr grew 4.2% YoY, recovering well from the Q3 dip — a clean, exceptional-free quarter restoring earnings confidence.
EPS (Basic) fell from ₹64.16 to ₹61.46 YoY, reflecting PAT compression despite flat share count.

Margins

EBITDA proxy (PBT + D&A + Finance costs): FY26 ≈ ₹27,282 Cr vs ₹28,009 Cr in FY25 — margin compression of ~60 bps on an expanding revenue base, driven by employee cost (+11.1% YoY) and outsourcing cost (+21.5% YoY) outpacing revenue growth.
Net profit margin contracted to ~12.8% in FY26 from ~14.9% in FY25 — a meaningful step-down reflecting cost structure inflation and lower other income.
Outsourcing costs as a % of revenue rose to 14.2% vs 13.0% in FY25, indicating rising subcontracting intensity.

Growth Trajectory

Revenue CAGR implied by FY25→FY26 at 11.2% is healthy for a large-cap IT player but margin dilution raises the question of whether growth is being bought rather than earned.
Q4FY26 YoY revenue growth of 12.3% — strongest quarterly print — is a promising exit rate, setting a high base for FY27.
Total comprehensive income grew 12.5% YoY to ₹20,361 Cr vs ₹18,104 Cr, outpacing PAT — FX translation gains and OCI items provided a meaningful buffer.

PERSISTENT – Persistent Systems – Q4 FY26 Financial Results – 21-Apr-26

Persistent Systems combines revenue scale, margin expansion, and cash strength. FY27 may inflect on FCF yield, but rising unbilled receivables, current assets, and subcontracting mix signal margin limits. Clean balance sheet and high earnings quality mean valuation hinges on sustaining deal momentum beyond historical growth.

1–2 minutes

🔍 Observations

Topline

Revenue crossed ₹147.5 Bn in FY26, up 23.5% YoY — broad-based acceleration rather than a one-quarter spike.
Q4FY26 revenue of ₹40.6 Bn grew 25.1% YoY and 7.4% QoQ, sustaining double-digit sequential momentum through the year.
Subcontracting costs rose 25.7% YoY, slightly outpacing revenue growth — signals heavier partner/vendor dependency in delivery mix.

Bottomline

PAT for FY26 at ₹18.7 Bn grew 33.2% YoY, meaningfully ahead of topline — operating leverage is real and compounding.
Q4FY26 PAT of ₹5.3 Bn surged 33.7% YoY and 20.4% QoQ; the quarterly exit run-rate signals a strong FY27 base.
Basic EPS expanded from ₹91.22 to ₹119.74 (+31.3% YoY), rewarding shareholders beyond just profit growth.

Margins

EBITDA margin (pre-D&A, pre-finance cost) estimated at ~20.9% for FY26 vs ~19.6% in FY25 — quiet but consistent expansion.
Net profit margin improved to 12.7% in FY26 from 11.7% in FY25 — 100 bps expansion on a ₹147 Bn revenue base is significant.
Employee cost as % of revenue held steady at ~53.9%, while other expenses rose to 12.2% vs 10.5% — worth monitoring.

Growth Trajectory

Revenue CAGR implied over FY25–26 at 23.5%; if the Q4 run-rate sustains, FY27 revenue could approach ₹180–185 Bn organically.
PAT growth (33.2%) outpacing revenue growth (23.5%) for a second successive year confirms structural margin improvement, not cyclical.
Dividend payout increased to ₹40/share vs ₹35/share — confidence in earnings durability, not just a one-off distribution.

WIPRO – Wipro Ltd – Q4 FY26 Financial Results – 16-Apr-26

Wipro’s FY26 shows 4% revenue growth but flat PAT, with debt elimination offset by working‑capital strain, ECL spike, and higher borrowings. Dividend discipline stretches FCF. FY27 hinges on AI/inorganic spend driving margins—without it, the stock remains a volume play lacking earnings traction.

1–2 minutes

🔍 Observations

Topline

Q4FY26 revenue ₹242,363M — up 7.7% YoY and 2.9% QoQ; full-year FY26 revenue ₹926,240M, up 4.0% YoY.
Sub-contracting & technical fees rose 7.5% YoY in FY26 — signals higher pass-through work and offshore-onsite mix shift.
Other income flat YoY at ~₹38.7–38.8B annually; not a growth driver.

Bottomline

FY26 PAT ₹132,655M vs ₹132,180M in FY25 — effectively flat (+0.4% YoY); Q4FY26 PAT ₹35,216M, down 1.8% YoY.
Revenue grew 4% but PAT barely moved — operating leverage absent; cost structure expanding in tandem with revenue.
EPS Basic ₹12.60 vs ₹12.56 prior year — near-zero earnings growth despite revenue recovery.

Margins

EBITDA proxy (PBT + D&A + Finance Costs): FY26 ~₹217,106M vs FY25 ~₹219,306M — slight EBITDA contraction despite revenue growth.
Employee costs as % of revenue: 60.0% in FY26 vs 59.9% in FY25 — stable but elevated; limited room to expand margins without headcount restructuring.
Net profit margin: 14.3% in FY26 vs 14.8% in FY25 — 50bps compression; operating efficiencies not translating to bottom-line accretion.

Growth Trajectory

FY26 revenue CAGR recovery underway but tepid at 4% — below IT sector peers in a stronger demand environment.
PAT growth near-zero for two consecutive years signals a structural earnings plateau, not cyclical softness.
Q4FY26 sequential improvement (+2.9% QoQ revenue, +11.9% QoQ PAT) offers a constructive exit rate into FY27.

WIPRO – Wipro Ltd – Q4 FY26 Earnings Call – 16-Apr-26

WIPRO’s growth capped at 0–2% by BFSI volatility, partly offset by APMEA/tech. Margins compress to 16.8–17.2% in FY27 from AI spend and wage hikes, with buyback cushioning EPS. SaaS pivot adds structural pressure; expect 15–30bps QoQ erosion in H1’27.

1–2 minutes

Also see: WIPRO – Wipro Ltd – Q4 FY26 Financial Results – 16-Apr-26

3-Scenario Framework

📊 Base Case (50% Probability)

Key Variables: Q1 ramp-up delays resolve by Q2; Americas 2 BFSI stabilizes (flat QoQ); AI platforms contribute 2–3% revenue by FY27 end.
Outcome: Revenue grows 0–2% YoY (inorganic-led), margins hover at 17.0–17.2% (cost takeout offsets investments), and EPS rises 3–5%. Buyback supports EPS; FCF conversion remains >110%. Implication: Cyclical softness; maintain “hold” with upside from AI scaling.

TCS – Tata Consultancy Services – Q4 FY26 Earnings Call – 9-Apr-26

TCS Outlook: AI and vendor consolidation fuel 2–4% CC growth, but macro risks loom. EPS growth (8–10%) depends on margin resilience (24.5–25.5%) and HyperVault execution. Sustainable 25%+ margins hinge on AI productivity, though HyperVault capex and partnerships add near-term volatility.

1–2 minutes

Also see: TCS – Tata Consultancy Services – Q4 FY26 Financial Results – 9-Apr-26

3-Scenario Framework

📊 Base Case (50% Probability)

Key Variables: Stable macro, AI revenue scales to $3B+, HyperVault secures 75% of 100 MW target, BFSI/manufacturing stabilize.
Outcome: Revenue grows 2–4% YoY (CC); margins 24.5–25.5% (FX/wage offset); EPS growth 8–10%. Dividend sustainability intact; HyperVault ROI emerges in 2–3 years.

TCS – Tata Consultancy Services – Q4 FY26 Financial Results – 9-Apr-26

1–2 minutes

👉 Also see: TCS – Q4 FY26 Earnings Call – 9-Apr-26

🔍 Observations

Q4 Mar-2026 Net Sales reached ₹70,698 Cr, with EBITDA at ₹19,276 Cr and PAT at ₹13,784 Cr — the strongest quarter across all five periods shown.
EBITDA margin held steady at ~27.27% in Q4, broadly in line with the prior three quarters, while annual EBITDA margin improved from 26.40% (FY25) to 27.11% (FY26).
Net Profit Margin for FY26 came in at 18.52%, down from 19.11% in FY25, despite higher absolute PAT.
Exceptional items of ₹4,526 Cr (restructuring, labour codes, legal provisions) weighed on FY26 PBT and PAT. Equity share count remains unchanged at 362 Cr shares.