LTIMindtree (LTIM) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue reached $1.21 billion, up 2.4% sequentially and 6.1% year-over-year in USD terms, with similar growth in constant currency.

• Operational EBIT margin expanded by 20 bps to 16.1% sequentially, with a 29% year-over-year increase before adjusting for a one-time Labour Code impact.

• Order inflows were $1.7 billion, up 6.4% quarter-on-quarter, with several large, multi-year AI-driven deals secured across industries.

• Net headcount rose to 87,958, with 1,511 net additions, including 1,736 freshers, and women comprising 30.9% of the workforce.

• Recognized for leadership in AI, risk management, and as a top employer in Asia Pacific, with multiple industry awards.

Financial highlights

• Q3 FY26 revenue: $1,208 million (+2.4% QoQ, +6.1% YoY USD; +3.7% QoQ, +11.6% YoY INR).

• EBIT margin: 16.1% (+20 bps QoQ), driven by margin improvement initiatives and forex tailwinds, partially offset by lower workdays and furloughs.

• One-time Labour Code impact: INR 5,903 million ($66 million), affecting reported profit.

• Adjusted PAT: INR 14,013 million (+1.5% QoQ, +29% YoY); reported PAT after Labour Code: INR 9,596 million.

• Basic EPS: INR 32.8 (vs. INR 47.3 in Q2, reflecting one-time impact); diluted EPS (adjusted) at INR 47.6.

• Operating cash flow to PAT: 129.9% (vs. 85.6% in Q2); free cash flow to PAT: 112.8% (vs. 72.4% in Q2).

• Cash and investments: $1.62 billion (INR 145,583 million).

• Return on capital employed: 29% (vs. 27.5% in Q2); ROE at 21.0%.

• Interim dividend of INR 22 per share paid during the period.

Outlook and guidance

• Growth momentum from the last three quarters expected to continue through year-end, with confidence in AI-led offerings and improved deal momentum.

• Targeting near double-digit year-over-year growth for FY26, with Q4 expected to approach this mark.

• Wage hikes to be implemented for 50% of employees in Q4, spread over two quarters.

• Margins expected to improve further, supported by operational efficiencies and the transition from Fit for Future to the New Horizons program.

• Forward-looking statements note risks and uncertainties due to market conditions.