LTIMindtree Q3 Results: PAT Falls 11% YoY to ₹971 Crore Despite Strong Revenue Growth

LTIMindtree reported mixed Q3FY26 results with net profit falling 11% year-on-year to ₹971 crore, significantly impacted by new labour code implementation, while revenue demonstrated strong growth of 12% YoY to ₹10,781 crore. The IT services company showed robust operational performance with improved margins and client metrics, though profitability was substantially affected by regulatory compliance costs totaling ₹590 crore.

Financial Performance Overview

The company's financial results revealed a clear impact from regulatory changes on profitability despite strong operational execution. Excluding the one-time labour code impact, the adjusted PAT would have stood at ₹1,401 crore, representing a 29% YoY growth and 1.5% QoQ increase.

Financial Metrics:	Q3FY26	Q3FY25	YoY Change	Q2FY26	QoQ Change
Revenue:	₹10,781 cr	₹9,661 cr	+12.0%	₹10,394 cr	+3.7%
PAT (Reported):	₹971 cr	₹1,085 cr	-11.0%	₹1,381 cr	-29.7%
PAT (Adjusted):	₹1,401 cr	₹1,085 cr	+29.0%	₹1,381 cr	+1.5%
EBIT:	₹1,737 cr	₹1,326 cr	+31.0%	₹1,648 cr	+5.4%
EBIT Margin:	16.10%	-	-	15.90%	+20 bps

Revenue Growth and Dollar Performance

LTIMindtree delivered solid revenue performance across currencies with USD revenue reaching $1,208 million, up 2.4% QoQ and 6.1% YoY. The constant currency revenue growth stood at 2.4% QoQ and 5.2% YoY, demonstrating consistent business momentum despite market challenges.

Revenue Performance:	Q3FY26	Growth Metrics
USD Revenue:	$1,208 million	+2.4% QoQ, +6.1% YoY
Constant Currency Growth:	-	+2.4% QoQ, +5.2% YoY
USD Net Profit:	$157 million	+0.1% QoQ, +22.6% YoY

Labour Code Impact Analysis

The implementation of new labour codes by the Government of India created a substantial one-time charge that significantly affected the company's profitability metrics. This regulatory compliance cost impacted both EBIT and net profit levels substantially.

Labour Code Impact:	Amount	Impact Level
Total Impact:	₹590 crore	EBIT Level
Adjusted vs Reported PAT:	₹430 crore difference	Net Profit Level
Sequential Decline:	-29.7%	Q2 to Q3 comparison

Client Portfolio and Operational Metrics

The company maintained strong client relationships with 746 active clients and demonstrated growth across higher-value client segments. The employee base expanded to 87,958 professionals with a net addition of 1,511 during the quarter.

Client Metrics:	Q3FY26	YoY Growth
Active Clients:	746	-
$5M+ Clients:	162	+10
$10M+ Clients:	97	+7
$20M+ Clients:	47	+8
Employee Base:	87,958	+1,511 QoQ
Attrition (TTM):	13.80%	-
Utilization:	86.90%	-

Management Outlook

CEO and Managing Director Venu Lambu emphasized the company's strategic progress, stating that the strong Q3FY26 performance reflects the impact of strategic AI pivot, continued success in large deals, and operational excellence. He highlighted this as the third consecutive quarter of 2%+ growth, demonstrating disciplined execution and deep tech-domain expertise with differentiated AI-led offerings.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.57%	+6.13%	+3.07%	+20.27%	+7.16%	+59.82%

LTIMindtree shares gained over 4% on Friday following the company's announcement of securing a landmark ₹3,000.00 crore contract from the Central Board of Direct Taxes (CBDT) for the Insight 2.0 project. The stock closed 4.40% higher at ₹6,295.00 per share, reflecting strong investor confidence in this major government contract win.

Stock Performance and Market Response

The market responded positively to the contract announcement, with shares climbing significantly during Friday's trading session. The stock has demonstrated strong performance this year, gaining 4.80% year-to-date, indicating sustained investor interest in the company's growth trajectory.

Stock Performance:	Details
Friday's Gain:	4.40%
Closing Price:	₹6,295.00
Year-to-Date Performance:	+4.80%
Market Response:	Positive investor sentiment

Project Specifications and Strategic Impact

The Insight 2.0 project represents a comprehensive seven-year mandate to develop an AI-powered analytics platform for modernizing India's national tax administration system. This initiative reinforces LTIMindtree's leadership position in enabling digital transformation through advanced digital architecture and data analytics capabilities, delivering real-time insights for policymakers.

Project Details:	Specifications
Contract Value:	₹3,000.00 crores
Project Name:	Insight 2.0
Contracting Authority:	Central Board of Direct Taxes (CBDT)
Duration:	7-year mandate
Technology Focus:	AI-powered tax analytics platform

Strong Q2 Earnings Foundation

The contract win comes on the back of LTIMindtree's impressive second-quarter performance reported in October. The company delivered stronger-than-expected earnings across key financial metrics, demonstrating robust operational execution and market positioning.

Q2 Financial Performance:	Results
Net Profit:	₹1,381.20 crores (+10.1% QoQ)
Revenue:	₹10,394.30 crores (+5.6% QoQ)
Operating Profit:	₹1,648.00 crores (+17.0% QoQ)
Operating Margin:	15.90% (vs 14.30% previous quarter)

Upcoming Financial Results

Investors will closely monitor LTIMindtree's December quarter results scheduled for release on Monday, January 19. The upcoming earnings announcement will provide insights into the company's continued growth momentum and operational performance following this significant contract award.

Company Profile and Market Position

LTIMindtree operates as a global technology consulting and digital solutions company, serving more than 700 clients worldwide with over 86,000 professionals across 40+ countries. As a Larsen & Toubro Group company, it specializes in solving complex business challenges through advanced digital architecture and data analytics solutions, particularly in government sector modernization initiatives.