LTIMindtree Q3 results: Net profit falls 12% to Rs 960 crore due to labour code charges

Representative image

IT services major LTIMindtree on January 19 reported 12 percent decline in year-on-year net profit that stood at Rs 960 crore for the third quarter ended December 31. This includes a one-time impact of Rs 590.3 crore incurred to implement the new labour codes.

Sequentially, net profit was down by 30.5 percent. Revenue for the quarter came in at Rs 10,781 crores, growing 11 percent YoY and 3.7 percent sequentially.

Despite the one-time profit hit, operating margins improved by 20 basis points sequentially to 16.1 percent in Q3.

Excluding the Labour Code impact, the Mumbai-headquartered IT giant's net profit would have grown 29 per cent YoY to Rs 1,401 crore.

Total headcount as of December 31 was around 87,958 professionals. LTIMindtree added 1,511 employees in Q3.

Trailing 12-month attrition was 13.8 per cent in Q3, improving from 14.2 per cent in the previous quarter.

Venu Lambu, Chief Executive Officer and Managing Director, LTIMindtree said, “Our strong Q3FY26 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.”

“This marks our third consecutive quarter of 2%+ growth, highlighting our disciplined execution, deep tech-domain expertise, and differentiated AI-led offerings. As we look forward, we remain focused on driving profitable growth and delivering tangible outcomes for our clients,” He added.