IT services firm LTIMindtree will commence its annual wage hike cycle starting the fourth quarter of FY 2026, covering approximately 50% of its workforce in the first phase. The company stated that the salary increments would be spread across two quarters -- Q4 FY26 and Q1 FY27 -- to manage the impact on operating margins.
"In terms of the wage hike timeline… we will be starting the wage hikes from Q4. But instead of doing it in one go, we'll probably spread it out over a couple of quarters... We will be taking up wage hike for about 50% of our population in Q4," LTIMindtree Chief Financial Officer Vipul Chandra said during the company's Q3 earnings call.
This follows the roadmap management laid out in the previous quarter (Q2 FY26), which first signalled the decision to split increments.
At that time, CEO and MD Venu Lambu had informed that the first tranche would be effective January 1, followed by a second tranche on April 1, describing the two-stage process as a "new normal" for the company to navigate industry inflection points.
Chandra noted that the financial impact of the wage hike is expected to be approximately 1 per cent in each of the two quarters. However, the company aims to offset this through operational efficiencies and its "New Horizon" enterprise-wide programme.
As of December 31, 2025, LTIMindtree's total headcount stood at 87,958, with a net addition of 1,511 employees during the third quarter.
The firm also inducted 1,736 freshers during the period. 12-month attrition for the quarter moderated further to 13.8%, down from 14.2% in the preceding quarter.
On the financial front, LTIMindtree reported a 10.5% 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 accounted for a one-time cost of Rs 590 crore due to the implementation of the new Labour Codes announced by the government in November 2025.
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.
Lambu expressed optimism about the growth trajectory, stating that the company is likely to touch a double-digit year-on-year growth rate as it exits the current fiscal year.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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