LTIMindtree Shares Fall 7% Amid Profit Decline

Shares of IT firm LTIMindtree dropped over 7% following a reported 10.5% decline in net profit for the October-December quarter due to a one-time cost from new Labour Codes. Revenue grew by 11.6%, though profit for the period fell by 30.7% sequentially.

Shares of IT company LTIMindtree saw a significant downturn, plunging over 7% after the firm announced a 10.5% reduction in consolidated net profit for the October-December quarter. The profit slip was attributed to a one-time expense stemming from the adoption of new Labour Codes.

The company's stock closed at Rs 5,940.15 on the BSE, marking a 7.26% decrease. Similarly, it tumbled 7.31% to Rs 5,938.50 at the NSE. Despite the profit decline, LTIMindtree's revenue from operations rose to Rs 10,781 crore in Q3 FY26, signaling an 11.6% increase from the previous year.

This financial impact primarily resulted from a Rs 590 crore charge due to the new Labour Codes enacted by the government. The company has categorized this expense as an exceptional item in its consolidated profit and loss statement, as it awaits further clarification from government regulations.

(With inputs from agencies.)