LTIMindtree Q3FY26 results: Profit drops 10.6% to ₹970 cr on Labour codes

LTIMindtree Q3FY26 profit declined 10.6% to ₹970.6 crore after a one-time ₹590.3 crore hit from new labour codes, even as revenue rose 11.6% Y-o-Y to ₹10,781 crore

 

 

Information technology (IT) firm LTIMindtree on Monday reported a 10.6 per cent drop in consolidated net profit to ₹970.6 crore in the third quarter of the financial year 2025–26 (Q3FY26). Net profit stood at ₹1,085.4 crore during the same period last year. On a quarter-on-quarter (Q-o-Q) basis, profit plunged 30.7 per cent from ₹1,401.1 crore.

 

The company attributed the decline to the implementation of new labour codes, which resulted in a one-time incremental expense of ₹590.3 crore.

 

“Based on the requirements of the new labour codes and relevant accounting standards, the group has estimated the liability for employee benefits, which has resulted in an incremental expense on account of recognition of past service costs. Considering the material, one-time nature of the incremental amount, the group has presented the same as an ‘exceptional item’ in the consolidated statement of profit and loss for the quarter and nine months ended December 31, 2025, amounting to ₹590.3 crore,” the IT services provider said in a BSE filing.

 

It added that when the exceptional cost is excluded, net profit increased 29 per cent year-on-year to ₹1,401.3 crore.

 

The company’s revenue from operations, however, increased 11.6 per cent year-on-year to ₹10,781 crore from ₹9,660.9 crore in Q3FY25. Sequentially, revenue increased 3.7 per cent from ₹10,394.3 crore.

 

“Our strong Q3FY26 performance reflects the impact of our strategic artificial intelligence (AI) pivot, continued success in large deals, and operational excellence, supported by our proactive efforts to build a more resilient and balanced portfolio. This marks our third consecutive quarter of 2 per cent-plus growth, highlighting our disciplined execution, deep tech-domain expertise and differentiated AI-led offerings,” said Venu Lambu, chief executive officer and managing director of LTIMindtree.

 

LTIMindtree’s earnings before interest, taxes, depreciation and amortisation (Ebitda) for the quarter stood at ₹2,002.7 crore, up 25.7 per cent year-on-year. Moreover, the Ebitda margin improved to 18.6 per cent from 16.5 per cent in Q3FY25.

 

Shares of LTIMindtree closed at ₹6,405.25 apiece on the BSE on Monday.