Mumbai, January 20, 2026 — Shares of LTIMindtree fell sharply in early trading on Tuesday, dropping over 5% after the company announced its December quarter results. As of 9:24 AM, the stock was trading at Rs 6,073.30 on the BSE, down Rs 331.95 from previous levels.
Despite steady revenue growth, the stock saw a significant decline due to a drop in headline profits, primarily attributed to a one-time charge related to new labour laws.
The IT services firm reported a 11% year-on-year decline in net profit, which fell to Rs 971 crore in the December quarter from Rs 1,085 crore a year earlier. The profit decline was mainly due to a Rs 590 crore impact from the implementation of new labour norms. Excluding this one-time charge, net profit stood at Rs 1,401 crore, marking a 29% increase year-on-year.
Revenue from operations grew 12% YoY to Rs 10,781 crore, up from Rs 9,661 crore in the same period last year. Sequentially, revenue increased by 4% from Rs 10,394 crore. Operating earnings before interest and tax (EBIT), excluding the labour code impact, reached Rs 1,737 crore, up 5.4% quarter-on-quarter and 31% YoY.
In dollar terms, revenue stood at $1,208 million, reflecting a 2.4% sequential increase and a 6.1% YoY rise. Dollar revenue growth in constant currency was similarly positive. The company’s operating margin improved slightly to 16.1%, while net profit in dollar terms was $157 million, up 0.1% sequentially and 22.6% YoY, excluding the labour law impact.
Analysts’ perspectives remain divided. CLSA maintained an ‘Accumulate’ rating with a target price of Rs 7,067, citing strong deal wins across BFSI, consumer, media, and public markets. Morgan Stanley kept an ‘Equalweight’ rating with a target of Rs 6,300, noting near-term margin pressures but encouraging growth prospects. Nomura adopted a ‘Neutral’ stance with a Rs 5,900 target, citing margin misses and the Rs 5.9 billion labour law provision. Macquarie reiterated an ‘Outperform’ rating with a Rs 6,930 target, highlighting robust revenue growth, while Citi maintained a ‘Sell’ rating with a Rs 5,415 target, citing margin risks from upcoming wage hikes.
Investors reacted negatively to the results, focusing on the profit decline and short-term margin pressures, even as the company’s revenue growth and deal momentum remain strong.
