Nuvama Institutional Equities has retained its 'Buy' rating on LTM Ltd (LTIMindtree) following its in-line performance in the March quarter (Q4 FY26), while increasing the target price.

The brokerage said LTM reported a steady quarter, with revenue growth and margins largely meeting expectations. "Revenue rose 1.2 per cent QoQ in constant currency (CC) to $1,222 million, slightly below our estimate of 1.5 per cent. EBIT margin declined 100 basis points QoQ to 15.1 per cent, in line with our estimate," Nuvama stated.

Total contract value (TCV) remained stable at $1.69 billion, up 5.2 per cent year-on-year (YoY), indicating sustained deal momentum.

Nuvama highlighted improving growth visibility and margin recovery as key positives going ahead. "LTM has closed the year on a strong note, with 8 per cent YoY growth in Q4 and visible growth triggers, including BFSI client recovery and continued momentum in the hi-tech segment. With margins also on a recovery path, LTM appears to be moving towards realising its true potential," it said.

The brokerage has revised its earnings estimates. "We are tweaking FY27E/FY28E EPS by +2.2 per cent/+1.8 per cent, factoring in an updated USD/INR assumption of 93 (earlier 88). We maintain 'Buy' with a revised target price of Rs 6,200 (earlier Rs 6,100), valuing the stock at 25x FY28E P/E," it added.

Nuvama also underscored the company's growth outlook. "A strong Q4 exit provides a favourable base, which should enable around 8 per cent YoY USD revenue growth in FY27 with just 2 per cent CQGR. Management commentary remained constructive, expressing confidence in sustaining growth momentum in the coming quarters," the brokerage noted.

At current levels, Nuvama believes the stock's valuation is justified. "LTM currently trades at 21x FY27E P/E. We expect this premium over large-cap peers to sustain, supported by widening growth outperformance," it said.

Despite the positive outlook, LTM shares were under pressure in early trade on Friday, falling 4.96 per cent to hit a low of Rs 4,296.