LTIMindtree Q3 Profit Falls 12% to ₹960 Crore on Labour Code One-Off

LTIMindtree has reported a 12% year-on-year (YoY) decline in consolidated net profit for the third quarter of FY26, primarily due to a one-time charge related to the implementation of India’s new labour codes.

Net profit for the quarter stood at ₹959.6 crore, compared with ₹1,086.7 crore in the same period last year.

On a quarter-on-quarter basis, profit fell 30.5% from ₹1,381.2 crore in Q2FY26.

The drop was largely driven by a one-time labour code impact of ₹590.3 crore at the EBIT level, which translated into a ₹441.8 crore hit to net profit, the company said in its earnings release.

Excluding this exceptional cost, net profit rose 29% YoY to ₹1,401.3 crore and increased 1.5% sequentially. This indicates an improvement in underlying operating performance.

Venu Lambu, chief executive officer and managing director at LTIMindtree, said the quarterly performance reflects the impact of the company’s strategic AI pivot, continued success in large deals, and operational excellence. These are further supported by the company’s proactive efforts to build a more resilient and balanced portfolio. 

“This marks our third consecutive quarter of 2%+ growth, highlighting our disciplined execution, deep tech-domain expertise, and differentiated AI-led offerings.”

Revenue from operations rose 11.6% YoY to ₹10,781 crore in the December quarter, up from ₹9,660.9 crore a year earlier. Sequentially, revenue grew 3.7% from ₹10,394.3 crore.

At the operating level, EBIT rose 5.4% quarter-on-quarter, while the operating margin expanded by 20 basis points to 16.1%, despite the one-time cost impact.

LTIMindtree said it had 746 active clients as of December 31 last year.

The number of ₹415-crore-plus ($5 million+) clients increased by 10 YoY to 162, ₹830-crore-plus ($10 million+) clients rose by seven to 97, and ₹1,660-crore-plus ($20 million+) clients increased by eight to 47.

The company’s workforce stood at 87,958 employees, following a net addition of 1,511 professionals in Q3.

Trailing 12-month attrition was 13.8%, while utilisation excluding trainees was 86.9%.

On the deal front, LTIMindtree highlighted five major wins. This includes a ₹1,285-crore ($155 million) deal with a leading US insurance and financial services company for a multi-year engagement. The deal covers application management, infrastructure operations, and end-user services, and will be driven by an AI-led delivery model. 

It also announced multiple multi-year transformation deals across manufacturing, financial services, technology, and consumer sectors.

On January 16, the company announced it had been awarded the Insight 2.0 project by the Central Board of Direct Taxes (CBDT) to build an AI‑powered programme to modernise India’s national tax analytics platform.

Valued at around ₹3,000 crore, it said the seven-year mandate reinforces LTIMindtree’s leadership in enabling digital transformation through advanced digital architecture and data analytics to deliver real-time insights for policymakers.

The post LTIMindtree Q3 Profit Falls 12% to ₹960 Crore on Labour Code One-Off appeared first on Analytics India Magazine.