Information technology services company LTIMindtree reported a 10.4% decrease in its consolidated net profit for the third quarter of the 2025–26 financial year. The decline, resulting in a net profit of Rs 970.6 crore in Q3, was attributed to a one-time expense linked to the implementation of new labour codes.
The company stated that the profit drop was mainly due to a one-time incremental expense of Rs 590.3 crore related to the adoption of new labour codes. This expense was incurred due to the recognition of past service costs following a reassessment of employee benefit liabilities in compliance with the new regulations and accounting standards.
LTIMindtree, headquartered in Mumbai, posted a total income of Rs 11,008.2 crore in the third quarter, marking an 11.49% increase from the year-ago period. Additionally, revenue from operations rose by 11.59% to Rs 10,781 crore in the quarter under review.
In its regulatory filing, the IT services provider classified the incremental amount as an “exceptional item” in the consolidated statement of profit and loss for the quarter and the nine months ended December 31, 2025. The company clarified that this expense does not signify any decline in its core business performance but is a one-time adjustment prompted by regulatory changes.
Venu Lambu, Chief Executive Officer and Managing Director of LTIMindtree, expressed satisfaction with the company’s strong Q3 performance. He attributed this success to the strategic AI pivot, achievements in large deals, and operational excellence, emphasizing the proactive efforts to enhance the company’s resilience and portfolio balance.
