In a mixed bag of quarterly results, LTIMindtree reported a 10.4% drop in net profit for Q3 FY26, settling at ₹970.6 crore compared to ₹1,085.4 crore in Q3 FY25. The Mumbai-based digital engineering leader disclosed these figures via an exchange filing on Monday.

Blame the decline on a hefty ₹590.3 crore one-off cost from adopting new labor codes—a regulatory shift impacting employee-related expenses. Company officials were quick to reassure stakeholders, categorizing the outlay as an exceptional item separate from ongoing operations.

On the growth front, total revenue surged 11.49% to ₹11,008.2 crore, with operational income rising 11.59% to ₹10,781 crore. These gains reflect LTIMindtree’s resilience amid macroeconomic challenges and its focus on high-margin services.

Leadership remains bullish. Venu Lambu, CEO and Managing Director, commented, ‘This quarter’s results demonstrate our AI-driven strategy, big-ticket deal successes, and operational prowess, supported by a diversified portfolio.’ He highlighted three straight quarters of 2%+ growth, fueled by tech expertise and AI innovations.

As LTIMindtree fine-tunes its cost structure post this adjustment, the company’s trajectory suggests steady progress. With a strong order book and emphasis on emerging tech, it stands poised for recovery and expansion in the evolving IT services market.