LTIMindtree Ltd. reported a sequential fall in profit in the third quarter of the current fiscal due to one-time impact of new labour codes, even as operating margin rose and revenue met estimates.
Consolidated revenue from operations rose nearly 4% to Rs 10,781 crore in the October-December quarter, according to a stock exchange filing on Monday. Analysts' consensus estimates compiled by Bloomberg projected Rs 10,726 crore.
Net profit tanked by nearly a third to Rs 971 crore. The company had to make a provision of Rs 590 crore to implement changes under the new labour codes introduced by the government during the quarter.
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Operating income, denoted under earnings before interest and tax (EBIT), rose over 5%, while margin expanded by 20 basis points.
LTIMindtree Q3 Results (Cons QoQ)
- Revenue up 3.7% at Rs 10,781 crore versus Rs 10,394 crore (Bloomberg estimate: Rs 10,726 crore)
- EBIT up 5.4% at Rs 1,737 crore versus Rs 1,648 crore (Bloomberg estimate: Rs 1,706 crore)
- Margin at 16.1% versus 15.9% (Bloomberg estimate: 15.84%)
- Profit down 31% at Rs 971 crore versus Rs 1,401 crore (Bloomberg estimate: 1,413 crore)
LTIMindtree order inflow stood at $1.69 billion in Q3, compared to $1.59 billion in the preceding quarter.
Segment-wise, revenue from healthcare, life sciences and public services jumped 9.9% q-o-q in US dollar terms, manufacturing and resources rose 9.4% and consumer business by 1.2%. Technology, media and communications was flat while banking, financial services and insurance dipped 0.7%.
Income from North America was flat, Europe grew 3.4% and rest of the world rose 14.1%.
The company added 1,511 employees during the quarter, while trailing 12-month attrition was 13.8%.
“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," said Chief Executive Officer and Managing Director Venu Lambu.
Shares of LTIMindtree settled 1.6% higher at Rs 6405.25 on the BSE, ahead of the results, compared to a 0.4% decline in the benchmark Sensex. The stock is 9% on a 12-month basis.
Also Read: Q3 Result Live Updates
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