LTIMindtree has outlined its wage increase strategy for the upcoming quarters, with CFO Vipul Chandra providing details on the timing and scope of salary hikes planned for the workforce. The announcement covers a phased approach to employee compensation adjustments spanning two consecutive quarters.

Wage Increase Timeline and Coverage

The company has structured its wage increase program across Q4 FY26 and Q1 FY27, with a significant portion of employees set to benefit from the salary adjustments. The phased implementation reflects a strategic approach to managing workforce compensation while maintaining operational efficiency.

Financial Impact Assessment

The wage increases are expected to have a measurable impact on the company's operational costs. CFO Vipul Chandra has provided specific guidance on the anticipated cost implications, offering transparency on the financial effects of these compensation adjustments.

Mitigation Strategy Through New Horizons Program

LTIMindtree plans to offset the increased wage costs through operational improvements generated by its "New Horizons" program. This strategic initiative is designed to deliver efficiencies that will help neutralize the financial impact of the salary increases, demonstrating the company's commitment to maintaining profitability while investing in employee compensation.

The company's approach reflects a balanced strategy of investing in human capital while implementing operational improvements to maintain cost competitiveness. The New Horizons program serves as a key component in this dual approach, providing the operational leverage needed to support enhanced employee compensation without compromising financial performance.

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.

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.

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.

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.

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.