Mumbai, Jan 19 (IANS) Information technology services company LTIMindtree on Monday reported a 10.4 per cent decline in its consolidated net profit for the third quarter of the 2025–26 financial year (Q3 FY26).

The IT major attributed the decline to a one-time expense linked to the implementation of new labour codes.

The company posted a consolidated net profit of Rs 970.6 crore in Q3, compared with Rs 1,085.4 crore in the same quarter last financial year, according to a regulatory filing with the BSE.

LTIMindtree said the fall in profit was primarily due to a one-time incremental expense of Rs 590.3 crore arising from the adoption of new labour codes.

The expense relates to the recognition of past service costs after the company reassessed its employee benefit liabilities in line with the new regulations and applicable accounting standards.

The Mumbai-headquartered digital solutions company posted total income of Rs 11,008.2 crore in the third quarter, up by 11.49 per cent from Rs 9,873.4 crore in year-ago period.

Revenue from operations also followed suit and was up by 11.59 per cent to Rs 10,781 crore in quarter under review.

In its filing, the IT services provider said that considering the material and one-time nature of the cost, the incremental amount has been classified 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 the expense does not reflect any deterioration in its core business performance but is a one-off adjustment triggered by regulatory changes.

“Our strong Q3 performance reflects the impact of our strategic AI pivot, continued success in large deals, and operational excellence, supported by our proactive efforts to build a more resilient and balanced portfolio,” Venu Lambu, Chief Executive Officer and Managing Director said.

“This marks our third consecutive quarter of over 2 per cent growth, highlighting our disciplined execution, deep tech-domain expertise, and differentiated AI-led offerings,” Lambu added.

–IANS

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