LTIMindtree Targets USD 10 Billion in Revenue by FY32, Pivots to AI The pipeline for large deals remains robust, with a total TCV of USD 5 billion, including 14 deals exceeding USD 100 million (totaling USD 1.9 billion) and 21 deals in the USD 50–100 million range (worth USD 1.3 billion).

LTIMindtree (LTIM) is targeting a revenue of USD 10 billion by FY32 while pivoting to artificial intelligence (AI) in the long-term, analysts at Motilal Oswal said based on discussions with the management at the company's Investor Day 2024. The IT services company's revenue for FY24 stood at USD 4.3 billion.

The management also spelt out its aspiration of achieving an EBIT margin of 17-18 per cent by FY32, outlining its strategic vision and highlighting its capabilities in AI and GenAI.

"We believe LTIM's strengths in data engineering and ERP modernization position it well to capture pre-GenAI investment opportunities. While margin expansion remains a key risk to our thesis due to unrealized merger synergies, we expect gradual improvement as demand strengthens. With BFSI clients increasing spending on transformation projects, LTIM stands to benefit despite its margin challenges," Motilal Oswal said in a note.

LTIM plans to grow its already scaled verticals like BFSI and Technology, and accelerate growth in verticals such as manufacturing, healthcare, life sciences, and consumers. As a strategic pivot, the company plans to infuse AI in all its offerings, as well as participate in the capex cycle spurred by clients' investments in AI.

LTIM's strategy for scaling AI delivery rests on building a strong foundation using business and IT data, AI agents that would automate repetitive tasks, and building domain-specific co-pilots.
LTIM is building a balanced large-deal pipeline. In the past 18 months, "LTIM has proactively shaped and closed over 45 large deals, contributing to a total contract value (TCV) of USD 2 billion. These wins span across industries, with 30 per cent exposure in BFSI, 33 per cent in manufacturing, and 31 per cent in communication sectors, showcasing a balanced portfolio of engagements," Motilal Oswal analysts said.

The brokerage firm believes LTIM's capabilities lie in transformation as well as modernization deals. "However, LTIM has tried to diversify into cost-takeout deals, which currently make up 48 per cent of its total deal pipeline. But with discretionary/ transformation spends coming back (albeit slowly), LTIM's services (data, digital engineering, ERP, cloud) and verticals (banking and technology) are both favourably placed to benefit from this recovery," the note said.

The pipeline for large deals remains robust, with a total TCV of USD 5 billion, including 14 deals exceeding USD 100 million (totaling USD 1.9 billion) and 21 deals in the USD 50–100 million range (worth USD 1.3 billion).

"Vendor consolidation is a notable trend in the industry, which is reflected in 17 per cent of the large-deal pipeline. Additionally, 48 per cent of the pipeline is focused on cost optimization deals, while 2 per cent targets GCC (global capability center) deals, indicating a strategic emphasis on efficiency and streamlined operations. Empanelment deals, which account for 10 per cent of the large-deal pipeline, also highlight the company's ability to position itself as a preferred vendor across multiple engagements," Motilal Oswal said in its note.