LTIMindtree Q3 earnings show revenue up 12% but PAT drops 11% YoY to Rs 971 crore due to the new labor code

IT services company LTIMindtree on Monday reported an 11% year-on-year decline in consolidated net profit for the December quarter at Rs 971 crore, compared with Rs 1,085 crore in the same period last year. The profit after tax is attributable to the shareholders of the company.

However, excluding the one-time impact of the new labour code, the company’s net profit stood at Rs 1,401 crore during the quarter, registering a 29% increase year-on-year and a 1.5% rise quarter-on-quarter. LTIMindtree disclosed that the impact of the new labour norms amounted to Rs 590 crore.

Revenue from operations for the October–December quarter came in at Rs 10,781 crore, marking a 12% increase year-on-year from Rs 9,661 crore in Q3FY25 and a 4% rise sequentially from Rs 10,394 crore in the September quarter.

Operating earnings before interest and taxes (EBIT), excluding the labour code impact, stood at Rs 1,737 crore in Q3FY26, up 31% year-on-year and 5.4% quarter-on-quarter.

In dollar terms, revenue for the quarter was $1,208 million, reflecting growth of 2.4% quarter-on-quarter and 6.1% year-on-year. Constant currency revenue increased 2.4% sequentially and 5.2% on a yearly basis.

The company’s operating margin (EBIT) improved to 16.1%, expanding by 20 basis points quarter-on-quarter. Net profit in dollar terms stood at $157 million, up marginally by 0.1% sequentially and 22.6% year-on-year, excluding the impact of the new labour code.

As of December 31, 2025, LTIMindtree reported a total of 746 active clients. The number of clients contributing over $5 million in annual revenue increased by 10 year-on-year to 162. Clients in the $10 million-plus category rose by seven to 97, while those contributing over $20 million increased by eight to 47.

Commenting on the results, Chief Executive Officer and Managing Director Venu Lambu described the company’s Q3FY26 performance as strong, attributing it to the firm’s strategic focus on artificial intelligence, continued traction in large deals and operational excellence.

“This marks our third consecutive quarter of over 2% growth, reflecting disciplined execution, deep technology and domain expertise, and differentiated AI-led offerings,” Lambu said, adding that the company remains focused on driving profitable growth and delivering measurable outcomes for clients going forward.