LTIMindtree Q3 profit falls 10.5% to Rs 971 crore on one-time Labour Code provision

New Delhi: IT firm LTIMindtree on Monday reported a 10.5 per cent decline in consolidated net profit to Rs 970.6 crore in the October-December quarter, primarily offset by the one-time provision from the implementation of the new Labour Codes.

The company had reported a net profit (attributable to shareholders) of Rs 1,085 crore in the same period a year ago.

LTIMindtree accounted for a Rs 590 crore one-time cost due to the implementation of the new Labour Codes announced by the government in November 2025.

"Considering the material, one-time nature of the incremental amount, the Group has presented the same as an 'Exceptional Item' in the consolidated statement of profit and loss for the quarter and nine months ended December 31, 2025, amounting to Rs 5,903 million.

"Upon notification of the related Rules to the new Labour Codes by the government and any further clarification from the government on other aspects of the new Labour Codes, the Group will evaluate and account for differential impact, if any, in subsequent periods," the company said in a regulatory filing.

LTIMindtree's revenue from operations grew 11.6 per cent to Rs 10,781 crore in Q3 FY26, as compared to Rs 9,661 crore in Q3 FY25.

Seen sequentially, the company's profit fell 30.7 per cent, while revenue grew by 3.7 per cent.

"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 per cent + 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," LTIMindtree CEO and MD Venu Lambu said.

The company added 1,511 employees during the quarter under review, bringing its staff tally to 87,958 professionals as of December 31, 2025.

Shares of LTIMindtree ended 1.55 per cent higher at Rs 6,405.25 apiece on the BSE on Monday.