LTIMindtree Q3 Results: New labour code impact dents profit, revenue tops estimates

LTIMindtree reported a mixed performance for the December quarter, with net profit falling sharply below Street expectations due to a one-time impact from new labour codes, even as revenue and operating margins beat estimates.

The IT services firm posted a net profit of ₹959.6 crore for Q3 FY26, well below the CNBC-TV18 poll estimate of ₹1,417 crore. Profit declined 30.5% sequentially from ₹1,381 crore in the September quarter.

Revenue, however, came in ahead of expectations. The company reported revenue

of ₹10,781 crore, marginally above the poll estimate of ₹10,738 crore and up 3.7% quarter-on-quarter. Dollar revenue rose 3% sequentially to $1,208 million.

Earnings before interest and tax (EBIT) stood at ₹1,737 crore, compared with the poll estimate of ₹1,719 crore, while EBIT margin improved to 16.1% from 15.9% in the previous quarter.

The company said profitability was impacted by a one-time charge linked to the implementation of new labour codes, amounting to ₹590.3 crore at the EBIT level and ₹441.8 crore at the net profit level.

Commenting on the performance, Chief Executive Officer and Managing Director Venu Lambu said, “Our strong Q3FY26 performance reflects the impact of our strategic AI pivot, continued success in large deals, and operational excellence… This marks our third consecutive quarter of 2%+ growth.”

Operationally, LTIMindtree reported 746 active clients as of December 31, 2025. The number of $5 million-plus clients rose by 10 year-on-year to 162, while $10 million-plus clients increased by seven to 97.

The company’s employee base stood at 87,958, with a net addition of 1,511 employees during the quarter. Trailing 12-month attrition eased to 13.8%, while utilisation (excluding trainees) was 86.9%.

Ahead of the earnings announcement, shares of LTIMindtree Ltd closed at ₹6,360 on the NSE, up 0.82%.