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LTIMindtree Q3 Profit Dips 10% to Rs 971 Cr on One-Time Labour Code Cost

LTIMindtree reported a 10.4% year-on-year decline in consolidated net profit for Q3 FY26, amounting to Rs 970.6 crore. The company attributed the drop primarily to a one-time exceptional expense of Rs 590.3 crore linked to the implementation of new labour codes and a reassessment of employee benefit liabilities. Despite the profit dip, the company's revenue from operations showed strong growth, increasing by 11.59% to Rs 10,781 crore. CEO Venu Lambu emphasized the firm's continued growth momentum, strategic AI focus, and success in securing large deals.

Key Points: LTIMindtree Q3 Net Profit Falls 10% to Rs 971 Crore

  • 10.4% profit decline to Rs 971 crore
  • One-time Rs 590 cr expense from new labour codes
  • Revenue up 11.6% to Rs 10,781 crore
  • Third straight quarter of over 2% growth
2 min read

LTIMindtree clocks 10 pc decline in Q3 net profit to Rs 971 crore

LTIMindtree's Q3 FY26 net profit declined 10.4% to Rs 971 crore due to a one-time Rs 590 crore expense from new labour codes.

"Our strong Q3 performance reflects the impact of our strategic AI pivot, continued success in large deals, and operational excellence - Venu Lambu"

Mumbai, Jan 19

Information technology services company LTIMindtree on Monday reported a 10.4 per cent decline in its consolidated net profit for the third quarter of the 2025-26 financial year.

The IT major attributed the decline to a one-time expense linked to the implementation of new labour codes.

The company posted a consolidated net profit of Rs 970.6 crore in Q3, compared with Rs 1,085.4 crore in the same quarter last financial year, according to a regulatory filing with the BSE.

LTIMindtree said the fall in profit was primarily due to a one-time incremental expense of Rs 590.3 crore arising from the adoption of new labour codes.

The expense relates to the recognition of past service costs after the company reassessed its employee benefit liabilities in line with the new regulations and applicable accounting standards.

The Mumbai-headquartered digital solutions company posted total income of Rs 11,008.2 crore in the third quarter, up by 11.49 per cent from Rs 9,873.4 crore in year-ago period.

Revenue from operations also followed suit and was up by 11.59 per cent to Rs 10,781 crore in quarter under review.

In its filing, the IT services provider said that considering the material and one-time nature of the cost, the incremental amount has been classified as an "exceptional item" in the consolidated statement of profit and loss for the quarter and the nine months ended December 31, 2025.

The company clarified that the expense does not reflect any deterioration in its core business performance but is a one-off adjustment triggered by regulatory changes.

"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," Venu Lambu, Chief Executive Officer and Managing Director said.

"This marks our third consecutive quarter of over 2 per cent growth, highlighting our disciplined execution, deep tech-domain expertise, and differentiated AI-led offerings," Lambu added.

- IANS

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Reader Comments

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Priyanka N
A Rs 590 crore one-time hit is massive! While they say it's due to labour codes, I hope this doesn't impact employee bonuses or future hiring plans. The IT sector is already going through a cautious phase. 🤔 Hope the management's confidence in AI-led growth translates to stable jobs.
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Aman W
Solid operational performance. 11.5% revenue growth is commendable in this global environment. The labour code adjustment was inevitable for all companies. LTIMindtree seems to be taking it in its stride and focusing on the AI pivot. Good to see consecutive growth quarters.
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Sarah B
As a shareholder, I appreciate the transparency in calling it an "exceptional item." It helps separate the core business health from regulatory one-offs. The revenue growth and the CEO's commentary on large deals are the key takeaways here. The market might overreact to the profit headline though.
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Karthik V
This is why you need to read beyond the first paragraph! The business is doing well. The new labour codes are for employee welfare, so this expense, while large, is a step towards better compliance. Hope other IT firms are also preparing for similar adjustments. Jai Hind! 🇮🇳
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Nikhil C
With all due respect to the management, calling it a "strong Q3 performance" when net profit is down 10% feels like spin. Yes, it's a one-time cost, but it still affects the bottom line shareholders see. They could have managed communication better to avoid the negative headline.

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