LTI Mindtree Crashes Over 7% Post Q3 Earnings, Marks Worst Day in 2 Years; Here is Why?

The stock declined over 7% to ₹5,914 on January 20, 2026, after the company reported a 30.5% quarter-on-quarter (QoQ) drop in consolidated net profit to ₹959.6 crore despite a 3.72% rise in revenue from operations to ₹10,781 crore. The fall in the stock price was due to the one-time impact of New Labour Codes; the net profit would be ₹1,401.3 crore.

On a year-on-year (YoY) basis, reported consolidated net profit was down 11.7%, even as revenue grew 11.6%, highlighting the distortion caused by the exceptional items recorded during the quarter.

Impact of New Labour Codes on Profitability

The exceptional items related to the new labour codes amounted to ₹590.3 crore in Q3, significantly impacting profitability on a reported basis. Excluding this one-time charge, underlying performance remained strong. The adjusted net profit stood at ₹1,401.3 crore, representing an increase of 1.5% QoQ and 29% YoY. Adjusted operating EBIT was ₹1,737.1 crore, up 5.4% sequentially and 30.7% YoY. Correspondingly, EBIT margin improved to 16.1% in Q3 FY26, compared to 13.8% in Q3 FY25, reflecting improved execution and operating leverage. 

Revenue, Order Flow & Deal Pipeline Hold Steady

In USD terms, revenue came in at $1,208 million, up 2.4% QoQ and 6.1% YoY, with constant currency growth of 2.4% QoQ and 5.2% YoY. Order inflow for the quarter was $1.69 billion, marginally higher than the $1.68 billion reported in Q3 FY25, indicating continued stability in deal momentum. The company ended the quarter with 746 active clients, demonstrating a broad enterprise footprint across global markets.

Strategic Deal Wins and AI-Led Execution

This performance aligns with the company’s broader narrative of sustained operational traction and AI-focused transformation strategy. LTIMindtree highlighted that this was its third consecutive quarter of delivering over 2% sequential growth, supported by large deal wins across financial services, manufacturing, consumer, and technology sectors. 

During the quarter, the company secured a notable $155 million total contract value, five-year deal with a leading US-based insurance and financial services firm involving application management, infrastructure operations, and end-user services delivered through an AI-led model. Multi-year engagements in manufacturing and consumer segments also expanded the company’s cloud, cybersecurity, data, and AI service pipelines.

People, Utilisation & Delivery Outlook

On the people's side, LTIMindtree employed 87,958 professionals as of December 31, 2025, adding 1,511 during the quarter. The trailing 12-month attrition rate stood at 13.8%, reflecting continued improvement in employee retention, while utilisation excluding trainees was a healthy 86.9%.

LTIMindtree, a Larsen & Toubro Group company, provides global technology consulting and digital solutions to enterprises across industries. With a focus on AI, cloud modernisation, and digital transformation, the company positions itself at the intersection of innovation and operational excellence to help clients reimagine business models and accelerate growth.

LTI Mindtree Share Price Falls Over 7% on Tuesday

On Tuesday, LTI Mindtree share price declined to the day's low, declining over 7% from its previous close, the highest in two years. As of 11:49 am stock price was trading at ₹5,912 per share, down by 7.69%.