L&T Tech Q3FY26 results: Profit falls 6% as new labour codes push up costs
L&T Technology Services said that the new labour codes have resulted in a material increase in provision for employee benefits on account of recognition of past service costs
 "L&T Tech Q3FY26 results: Profit falls 6% as new labour codes push up costs")
L&T Technology Services (LTTS) on Thursday reported a consolidated net profit of ₹302.6 crore in the third quarter of the financial year 2025-26 (Q3FY26), marking a 6 per cent year-on-year (Y-o-Y) drop. During the same quarter last year, profit for the engineering research and development firm stood at ₹322.4 crore. On a sequential basis, profit fell 7.9 per cent from ₹328.7 crore.
The decline was triggered by ₹35.4 crore provision linked to the implementation of new labour codes. The company said that the new codes have resulted in a material increase in provision for employee benefits on account of recognition of past service costs.
"Based on the requirement of new labour codes and relevant accounting standards, the group has assessed and accounted for the estimated incremental impact of ₹35.4 crore as an exceptional item in the consolidated statement of profit and loss for the quarter and nine months ended December 31, 2025," the company said in a BSE filing.
LTTS' revenue from operations, however, jumped 10.2 per cent Y-o-Y to ₹2,923.5 crore from ₹2,653 crore in Q3 FY25. Sequentially, it decreased marginally by 1.8 per cent from ₹2,979.5 crore.
"We sustained the momentum in large deal wins, delivering an average total contract value of ~$200 million for five consecutive quarters. The Sustainability segment continued to grow double-digit on a Y-o-Y basis while mobility is seeing a turnaround," said Amit Chadha, chief executive officer (CEO) and managing director at L&T Technology Services Limited.
"Our artificial intelligence (AI) suite of offerings are evolving with the launch of new Agentic AI platforms, as we pivot to deliver full-stack Engineering Intelligence (EI) solutions, which integrates physical and digital AI for our clients’ products and processes," he added.
He said the company’s earnings before interest and taxes (EBIT) margin for the quarter was 14.6 per cent. The company also revised its outlook, now expecting revenue growth for the 2026 financial year ending March 31 to come in at a mid single-digit rate, lower than its earlier forecast of double-digit growth.
Shares of LTTS closed at ₹4,245.3 apiece on the BSE on Wednesday.