LTIMindtree’s latest earnings tell a tale of regulatory hurdles overshadowing business strength. Net profit for the third quarter of FY26 tumbled 10.4% year-over-year to ₹970.6 crore, down from ₹1,085.4 crore, as per Monday’s announcement.
A one-time ₹590.3 crore expense linked to new labor code compliance drove the shortfall. The company clarified in filings that this exceptional item, tied to material and one-off costs, does not signal operational distress but rather a necessary adaptation to policy changes.
Revenue, however, tells a success story: consolidated figures hit ₹11,008.2 crore, a solid 11.49% increase over last year’s ₹9,873.4 crore. Operational revenue grew even faster at 11.59% to ₹10,781 crore, driven by demand in digital solutions.
Venu Lambu, the CEO and MD, emphasized continuity: ‘Our performance underscores strategic AI shifts, large deal momentum, and excellence in operations, all reinforced by portfolio balancing.’ This is the third quarter in a row with over 2% growth, powered by specialized expertise and AI offerings.
Looking ahead, with the one-off burden behind it, LTIMindtree appears primed for profit normalization. Its focus on AI and domain depth positions it favorably against peers, as India’s IT sector eyes global recovery.