LTIMindtree Q3FY26 results: Net profit slides 10.5% to ₹971 crore

LTIMindtree's Q3FY26 profit falls 10.5% to ₹971 crore due to labour code impact, even as revenue grows 11.6% on strong BFSI and manufacturing deals

LTIMindtree reported a 10.5 per cent decline in net profit to ₹971 crore, while revenue went up 11.6 per cent to ₹10,781 crore in the third quarter of FY26, as the mid-tier IT services firm was helped by deals won in its banking, financial services and insurance (BFSI) and manufacturing businesses.

 

The drop in profit was due to the impact of the new labour codes, for which the company set aside ₹590 crore. Both numbers, however, missed Bloomberg estimates.

 

In a seasonally weak quarter, impacted by furloughs and holidays, LTIMindtree’s numbers were better compared to larger peers such as HCLTech and Wipro. On a constant currency basis, it grew 5.2 per cent, while HCL was up 4.8 per cent.

 

 

BFSI was up 2.3 per cent, while manufacturing was up 14.1 per cent. Only the technology business was down 0.6 per cent compared to a year earlier. North America was also up 3.4 per cent on the back of large deals won during the year.

 

“Our strong Q3 performance reflects the impact of our strategic AI pivot, continued success in large deals, and operational excellence, supported by our proactive efforts to build a more resilient and balanced portfolio,” said Venu Lambu, chief executive officer and managing director.

 

Lambu has been banking on large deals to drive topline growth in an uncertain macroeconomic environment. These are primarily cost take-out and efficiency-improvement deals as customers tighten their spending.

 

LTIMindtree has been winning such deals at an astonishing pace. It has signed two deals with the Indian government — one with the Central Board of Direct Taxes (CBDT) and the other for upgrading the PAN network. Besides this, it signed a $100 million deal with a US chemicals company, a $450 million deal with an agribusiness firm and a $580 million deal with a media and entertainment company this financial year.

 

Operating margin, which excludes the impact of the labour codes, was up 20 basis points sequentially to 16.1 per cent.

 

The company added 1,511 employees during the third quarter, and its headcount was 87,958 at the end of December. Attrition declined to 13.8 per cent from 14.2 per cent.