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.
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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