BENGALURU: IT services company LTIMindtree on Monday reported an 11% year-on-year decline in consolidated net profit for the December quarter due to one-time charges related to the implementation of the new labour codes.
The profit fell to Rs 971 crore against Rs 1,085 crore in the year-ago period. The fall was even steeper sequentially by 30%. In Q2, the net profit was at Rs 1,401.
The company said the impact of the new labour norms stood at Rs 590 crore during the quarter. Excluding this one-time item, net profit for the quarter was Rs 1,401 crore, registering a year-on-year increase of 29%.
Revenue from operations during the October–December quarter came in at Rs 10,781 crore, up 12% year-on-year from Rs 9,661 crore in the corresponding quarter last year. On a sequential basis, revenue rose 4% from Rs 10,394 crore reported in the September quarter.
Commenting on the results, CEO Venu Lambu said, “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.”
Operating earnings before interest and taxes (EBIT), excluding the impact of the new labour codes, stood at Rs 1,737 crore in the December quarter. This marked a growth of 5.4% quarter-on-quarter and 31% year-on-year. The operating margin expanded to 16.1%, improving by 20 basis points sequentially.
Further, LTIMindtree reported 746 active clients as of December 31, 2025. The number of clients with annual revenue of over $5 million increased by 10 year-on-year to 162. Clients contributing over $10 million rose by seven to 97, while those contributing more than $20 million increased by eight to 47.
The company’s total headcount stood at 87,958 employees as of December 31, 2025. LTIMindtree added 1,511 employees during the December quarter. Trailing twelve-month attrition declined to 13.8% during the quarter, compared with 14.3% a year earlier.