LTM (Formerly LTIMindtree) vs Tech Mahindra (2026): Growth, AI, Margins & Which Is Better?
Nearly the same market value, surprisingly different operating economics
LTM, formerly LTIMindtree, and Tech Mahindra entered late August 2026 with market capitalisations in roughly the same ₹1.4 lakh crore neighbourhood, yet their current investment cases look very different.
LTM is a diversified technology-services company with strong financial-services exposure, a 15.5% EBIT margin, roughly $1.68 billion of quarterly order inflow and a newly disclosed AI business running at approximately $150 million per quarter across three AI categories.
Tech Mahindra is the more dramatic turnaround. Constant-currency growth has reached 6.6%, EBIT margin has climbed from 11.1% to 14.4% in one year and quarterly new deal wins have remained above $1 billion for three consecutive quarters.
The unusual part is valuation: LTM currently trades at a materially lower earnings multiple despite the higher margin.
Important first: LTIMindtree is now LTM Limited
The search term “LTIMindtree vs Tech Mahindra” remains relevant, but the listed company's current legal name is LTM Limited.
The company adopted the LTM brand in February 2026.
Its legal name changed from LTIMindtree Limited to LTM Limited in March 2026.
NSE had already changed the trading symbol from LTIM to LTM effective February 27, 2026, and formally recognised the new company name effective April 17.
The ISIN remained the same.
This article keeps “LTIMindtree” in the URL because investors still search for the former name, while financial data uses the current company and symbol, LTM.
The direct answer: LTM currently offers the cleaner risk-adjusted profile
Tech Mahindra has the faster turnaround, but LTM does not require investors to pay a turnaround premium.
Tech Mahindra's year-on-year constant-currency growth was 6.6% versus LTM at 6.4%.
That difference is tiny.
LTM's EBIT margin was 15.5% versus Tech Mahindra at 14.4%.
LTM reported order inflow of $1.68 billion versus Tech Mahindra's $1.078 billion of new deal wins, although the booking definitions differ.
LTM's late-August trailing P/E was approximately 26.5x-26.7x.
Tech Mahindra's Bull Run snapshot was approximately 34.9x.
Tech Mahindra needs continued margin expansion to justify its premium. LTM already produces more mature economics at the lower earnings multiple.
LTM vs Tech Mahindra: Q1 FY2027 operating scoreboard
| Metric | LTM, formerly LTIMindtree | Tech Mahindra | Current Edge |
|---|---|---|---|
| Current legal name / symbol | LTM Limited / LTM | Tech Mahindra / TECHM | Reference only |
| Q1 revenue | ₹11,608 Cr | ₹15,712 Cr | Tech Mahindra |
| USD revenue | $1.2235 Bn | $1.660 Bn | Tech Mahindra |
| YoY CC growth | 6.4% | 6.6% | Tech Mahindra slightly |
| QoQ CC growth | 0.3% | 2.6% | Tech Mahindra |
| EBIT margin | 15.5% | 14.4% | LTM |
| YoY margin movement | +120 bps | +~330 bps | Tech Mahindra momentum |
| Q1 PAT | ~₹1,469 Cr | ₹1,465 Cr | Essentially tied |
| PAT growth YoY | ~17.1% | 28.4% | Tech Mahindra |
| Order inflow / new deals | $1.68 Bn order inflow | $1.078 Bn new deals | LTM absolute, definitions differ |
| Active clients | 740 | Broader enterprise base disclosed differently | LTM disclosure |
| $10 Mn+ clients | 104 | Different client-tier disclosure | Not directly comparable |
| AI revenue disclosure | ~$150 Mn quarterly run-rate across Creative, Industrial and Business AI | No directly comparable standalone AI revenue | LTM transparency |
| Utilisation | 86.4% excluding trainees | 87.0% IT utilisation | Tech Mahindra slightly |
| Attrition | 13.3% | 11.8% | Tech Mahindra |
| Current ROCE indicator | 29.8% company-reported Q1 | 20.72% Bull Run | LTM |
| Late-August P/E | ~26.5x-26.7x | 34.89x on Aug 25 Bull Run snapshot | LTM |
| Late-August P/B | ~5.2x | 4.96x | Tech Mahindra |
| Dividend yield | ~1.9% | 3.4% | Tech Mahindra |
The most striking number is not growth. It is PAT.
Tech Mahindra generated roughly 35% more revenue than LTM but almost exactly the same quarterly net profit.
LTM reported consolidated PAT around ₹1,468.6 crore.
Tech Mahindra reported ₹1,465 crore.
The difference is only a few crores.
One quarter's PAT contains currency and other-income effects, so this should not be interpreted as a pure operating-margin comparison.
But it demonstrates how far Tech Mahindra still has to travel in its profitability recovery.
A much larger revenue base is not yet generating proportionately larger shareholder earnings.
Tech Mahindra wins the current growth race by only 20 basis points
Year-on-year constant-currency growth was 6.6% at Tech Mahindra and 6.4% at LTM.
That is practically a draw.
The sequential trend is more meaningful.
Tech Mahindra grew 2.6% quarter on quarter in constant currency.
LTM grew only 0.3%.
So Tech Mahindra entered Q2 with much stronger immediate momentum.
LTM's Q1 was temporarily slowed by specific pockets rather than broad weakness
Financial Services and Technology & Services both grew sequentially while Consumer remained strongly positive year on year.
Management described delays around an India government program, shipment timing in the Middle East and other project-specific issues that affected the quarter.
Financial Services grew approximately 3.2% sequentially in constant currency.
Technology & Services grew about 3.4% sequentially and remained double-digit positive year on year.
Consumer was still up approximately 18% year on year despite sequential softness.
This creates a reasonable case that the 0.3% sequential company growth understates the health of some core segments.
LTM's business mix is becoming easier to understand
The company now reports four major operating categories.
- Financial Services: approximately 34% of Q1 revenue.
- Consumer: approximately 26.6%.
- Technology & Services: approximately 20.0%.
- Production: approximately 19.4%.
The structure is more balanced than Tech Mahindra's large Communications concentration.
Financial Services is LTM's biggest exposure, but it is only about one-third of company revenue.
Tech Mahindra remains more dependent on telecom
Communications represented approximately 32.3% of Q1 revenue.
Manufacturing was about 19.3% and BFSI 16.7%.
This concentration has historically been a weakness when telecom operators reduce spending after major network-investment cycles.
It can become a strength if AI, autonomous networks, private cloud and 5G monetisation create another large investment cycle.
Tech Mahindra is winning the margin-improvement race
EBIT margin improved by roughly 330 basis points year on year to 14.4%.
That is far larger than LTM's 120-basis-point expansion.
Tech Mahindra's Project Fortius has pushed margin from 11.1% in Q1 FY2026 to 14.4% in Q1 FY2027.
Operational utilisation improved.
IT headcount declined.
Client concentration improved.
Free cash flow strengthened.
But LTM still has the higher margin today
LTM EBIT margin was 15.5%, 110 basis points above Tech Mahindra.
The company also absorbed wage hikes during the quarter and still expanded margin sequentially by about 40 basis points.
Utilisation excluding trainees increased to 86.4%.
Management reported ROCE of approximately 29.8%.
LTM therefore does not need the same degree of additional margin repair to reach attractive financial economics.
LTM's next margin challenge is maintaining quality while growth accelerates
Margin expansion achieved through utilisation and cost optimisation eventually reaches a limit.
Future upside increasingly depends on:
- Better revenue mix.
- AI-led productivity.
- Outcome-based pricing.
- Large-deal transition efficiency.
- Automation.
- Reduced subcontractor intensity after transition periods.
The company has already completed pricing transitions across several large relationships as it changes delivery economics around AI.
LTM is one of the few Indian IT companies now putting a dollar figure around AI
Creative AI, Industrial AI and Business AI together contributed approximately $150 million on a quarterly run-rate basis.
Against Q1 revenue of roughly $1.22 billion, that is economically meaningful.
The company separately discusses Enterprise AI as another category, so the $150 million figure should not be interpreted as necessarily representing every AI-related dollar across LTM.
The more important point is measurement.
Investors can now track whether AI becomes a larger part of actual revenue rather than relying only on client case studies.
LTM's AI model has four distinct layers
The company separates Enterprise AI, Business AI, Industrial AI and Creative AI.
That is a more useful framework than labelling every software-development contract as generative AI.
Enterprise AI focuses on technology stacks and infrastructure.
Business AI targets workflows and business models.
Industrial AI applies intelligence to manufacturing, connected products and supply chains.
Creative AI focuses on content, design and customer experience.
BlueVerse acts as the ecosystem connecting those capabilities.
Tech Mahindra's AI advantage is domain depth rather than disclosed revenue
Tech Mahindra has not published a directly comparable standalone AI-revenue figure.
Its differentiation is particularly strong in telecommunications.
The company is applying AI to network operations, 5G digital twins, private cloud, software development, customer experience, cybersecurity and agentic enterprise workflows.
It has also expanded AI partnerships across large platform vendors.
The strategy is commercially credible, but harder for investors to quantify quarter by quarter.
Order inflow currently favours LTM in absolute dollars
LTM reported approximately $1.68 billion of Q1 order inflow.
Tech Mahindra reported $1.078 billion of new deal wins.
The methodologies are not identical.
A large services-company order book can include renewals, incremental scope and different contract thresholds.
Tech Mahindra's metric focuses on new deal wins under its reporting definition.
The values should therefore not be subtracted mechanically.
LTM's deal book has been unusually stable
Order inflow has remained around the $1.6 billion-$1.7 billion range for several quarters.
Q1 was approximately 3% higher year on year.
Management argues that AI productivity means the same dollar order value can now represent more delivered output than in the past.
That is an important but difficult concept.
If clients receive more work for the same contract value, revenue growth depends increasingly on winning additional scope rather than simply billing more labour hours.
Tech Mahindra has stronger deal-win acceleration
New deal wins increased approximately 33% year on year.
Q1 was the third consecutive quarter above $1 billion.
Trailing-twelve-month new deals exceeded $4 billion.
That consistency supports management's confidence that revenue growth can remain stronger than in the previous turnaround phase.
LTM's client ladder is already broad
The company ended Q1 with 740 active clients.
It added 16 during the quarter.
Clients generating more than $10 million annually increased to 104.
Clients above $20 million also increased.
A broader large-client base reduces the risk that one contract determines company-wide growth.
Tech Mahindra is intentionally concentrating more revenue in strategic accounts
$50-million-plus clients increased from 26 to 33 year on year.
At the same time, total smaller $1-million-plus clients declined.
This suggests the company is pruning smaller accounts while expanding strategic wallet share.
That can improve margin and sales efficiency if the large accounts remain diversified enough.
LTM's cash flow was weaker than profit in Q1
Reported operating-cash-flow-to-PAT conversion was approximately 79% and free-cash-flow-to-PAT around 63%.
Management indicated that normalising for a one-time gain would improve those ratios to roughly 88% and 70%.
That is acceptable but not exceptional for an IT-services company.
Tech Mahindra's Q1 free-cash-flow conversion was stronger.
Tech Mahindra generated free cash flow equal to 108% of PAT
Free cash flow reached approximately $167 million.
Days sales outstanding improved to 84.
Strong cash conversion supports Tech Mahindra's margin-recovery story because it demonstrates that higher earnings are turning into cash rather than being trapped in receivables.
LTM has substantially more absolute liquidity
Cash and investments were approximately $1.5 billion, or about ₹15,021 crore, after the FY2026 final dividend payment.
This creates room for acquisitions, dividends and strategic investment.
The balance sheet also carries strong credit ratings.
The Randstad transaction adds another growth lever for LTM
LTM is pursuing the acquisition of selected Randstad technology and consulting operations across Europe and Australia at an enterprise valuation of up to €160 million.
The transaction is strategically aimed at adding clients, talent and geographic depth.
It could also reduce LTM's dependence on North American demand.
As with every acquisition, the real question is whether purchased revenue eventually earns the same margin and return on capital as the existing business.
Tech Mahindra is using smaller acquisitions more selectively
Its recent moves include capability expansion in areas such as payments technology.
The company has generally emphasised organic margin repair rather than using large acquisitions as the primary turnaround mechanism.
That keeps the Project Fortius story relatively easy to analyse.
Valuation currently favours LTM on earnings
LTM closed August 28 at approximately ₹4,675 with market capitalisation around ₹1.39 lakh crore and P/E around 26.5x.
Tech Mahindra's August 25 Bull Run snapshot showed ₹1,599.90, market capitalisation around ₹1.47 lakh crore and P/E approximately 34.9x.
Despite almost identical market capitalisations, LTM currently earns substantially more on a trailing basis relative to the price investors pay.
The P/B comparison is much closer
LTM trades around 5.2x book while Tech Mahindra is around 5.0x in the relevant late-August snapshots.
That implies the market values their equity bases similarly.
The difference is that LTM currently generates higher return on capital and stronger trailing earnings relative to market value.
Tech Mahindra's premium P/E therefore reflects expectations that profit continues growing faster than book value as margin improves.
Tech Mahindra offers the higher dividend yield
Bull Run's current trailing dividend yield is approximately 3.4% for Tech Mahindra.
LTM's late-August yield is roughly 1.9%.
For investors focused on immediate cash return, Tech Mahindra has the advantage.
But dividend yield is secondary to whether the underlying earnings base compounds.
LTM's current market chart requires a fresh symbol-aware data source
The company changed its trading symbol from LTIM to LTM in February 2026.
Legacy feeds can therefore contain stale LTIM observations after the symbol change.
This comparison uses current LTM market data rather than relying on the older LTIM row.
| LTM Market Metric | Late Aug 2026 |
|---|---|
| Price, 28 Aug | ₹4,675 |
| Market capitalisation | ~₹1.39 lakh Cr |
| P/E | ~26.5x-26.7x |
| P/B | ~5.2x |
| 1-month return | ~+5.3% |
| 1-year return | ~-10% |
| 52-week high | ~₹6,430 |
| 52-week low | ~₹3,530 |
Tech Mahindra has been the stronger medium-term stock performer
| Tech Mahindra Market Metric | 25 Aug 2026 Bull Run Snapshot |
|---|---|
| Price | ₹1,599.90 |
| 1-month return | +1.50% |
| 3-month return | +9.91% |
| 6-month return | +17.48% |
| 1-year return | +4.77% |
| 52-week high | ₹1,854 |
| 52-week low | ₹1,304.10 |
| RSI (14) | 37.01 |
The market has already rewarded Tech Mahindra's turnaround more clearly.
LTM has experienced a much larger drawdown from its January high, even though Q1 operating performance remained healthy.
LTM's current case
What is working
- 6.4% YoY CC growth.
- 15.5% EBIT margin.
- $1.68 Bn order inflow.
- Approximately $150 Mn disclosed AI quarterly run-rate.
- 740 active clients.
- 104 clients above $10 Mn annual revenue.
- 29.8% Q1 ROCE.
- Lower P/E than Tech Mahindra.
What requires monitoring
- Only 0.3% sequential CC growth in Q1.
- Cash conversion was below historical best levels.
- AI productivity can create pricing deflation.
- Randstad integration carries acquisition risk.
- Margin must remain above 15% as growth investments increase.
- Legacy data feeds can remain stale after the symbol change.
Tech Mahindra's current case
What is working
- 6.6% YoY CC growth.
- 2.6% sequential CC growth.
- 28.4% PAT growth.
- 330 bps YoY margin expansion.
- Three consecutive $1 Bn+ new-deal quarters.
- 108% free-cash-flow conversion.
- Lower attrition.
- Strong telecom AI positioning.
What the valuation assumes
- EBIT margin keeps moving toward and beyond 15%.
- Telecom demand remains stable.
- Deal wins convert into revenue.
- Historical low profit growth does not repeat.
- AI creates incremental work rather than only delivery efficiency.
- A mid-30s trailing P/E is supported by future EPS growth.
LTM vs Tech Mahindra: who currently wins each category?
Revenue scale: Tech Mahindra.
Year-on-year constant-currency growth: Tech Mahindra slightly.
Sequential growth: Tech Mahindra.
EBIT margin: LTM.
Margin-improvement momentum: Tech Mahindra.
Quarterly PAT: Essentially tied despite Tech Mahindra's larger revenue.
Order inflow: LTM on reported dollar amount, with definition caveat.
Quantified AI revenue: LTM.
Telecom domain depth: Tech Mahindra.
Business diversification: LTM.
Active-client scale disclosure: LTM.
Attrition: Tech Mahindra.
Current ROCE indicator: LTM.
Free-cash-flow conversion: Tech Mahindra in Q1.
Lower P/E: LTM.
Lower P/B: Tech Mahindra slightly.
Dividend yield: Tech Mahindra.
Recent six-month share performance: Tech Mahindra.
LTM vs Tech Mahindra FAQs
Is LTIMindtree now called LTM?
Yes. LTIMindtree Limited is now legally LTM Limited, and the NSE symbol is LTM.
Which company grew faster in Q1 FY2027?
Tech Mahindra slightly on a year-on-year constant-currency basis, at 6.6% versus LTM at 6.4%. Tech Mahindra also had stronger sequential growth.
Which has the higher EBIT margin?
LTM at 15.5% versus Tech Mahindra at 14.4%.
Which generated more Q1 profit?
The two were essentially tied. LTM reported around ₹1,469 crore and Tech Mahindra ₹1,465 crore.
Which has more visible AI revenue?
LTM currently provides the clearer numerical disclosure, with approximately $150 million of quarterly run-rate revenue across Creative, Industrial and Business AI.
Which is cheaper on P/E?
LTM, at roughly 26.5x-26.7x in late August versus Tech Mahindra at approximately 34.9x in Bull Run's August 25 snapshot.
Which has stronger margin-recovery momentum?
Tech Mahindra, whose EBIT margin expanded roughly 330 basis points year on year.
What is the biggest Tech Mahindra risk?
Its valuation already assumes further margin and earnings recovery, while Communications still represents roughly one-third of revenue.
Research sources
Disclaimer
This article is educational and informational only. LTM changed its legal name and trading symbol during 2026, so current LTM market data is used instead of stale legacy LTIM observations. IT-services companies should be compared using constant-currency growth, EBIT margin, deal quality, cash conversion, AI monetisation, client and industry concentration and capital efficiency. LTM order inflow and Tech Mahindra new-deal-win figures use different reporting methodologies and are not treated as perfectly interchangeable. Financial metrics, exchange rates and market prices change over time. Nothing here recommends buying, selling or holding LTM, Tech Mahindra or any other security. Bull Run is not a SEBI-registered Research Analyst or Investment Adviser.