LTIMindtree shares drop nearly 7% after net profit declines in December quarter

Shares of the country's leading information technology (IT) company, LTIMndtree, fell as much as 6.67% to hit an intraday low of ₹5,979.50 on National Stock Exchange on Tuesday, January 20. On the BSE, LTIMindtree shares declined as much as 6.53% to hit an intraday low of ₹5,986.95 after its net profit declined in December quarter.

LTIMindtree post market hours on Monday reported net profit of ₹960 crore in the third quarter of current financial year, marking a decline of 12% from ₹1,087 crore in the same period last year.

Its revenue from operations grew 11.59% annually to ₹10,781 crore, compared to ₹9,660.9 crore in the December quarter of the 2024-25 fiscal year (Q3FY25).

At an operational level, its EBITDA (earnings before interest, tax, depreciation and amortisation) (excluding the one-time impact of New Labour Codes) stood at ₹2,002.7 crore in the third quarter of FY26, marking a 27.5% YoY jump from ₹1,593.3 crore in the year-ago period.

Its EBITDA margin (excluding one-time impact of the new labour code) expanded to 18.6% in the reporting quarter, as against 16.5% in the December quarter of FY25.

At the end of December quarter, LTIMindtree had 746 active clients with a total of 162 clients worth above $5 million and above, 97 clients worth $10 million and a total of 47 clients worth $20 million plus, LTIMindtree said.

During the quarter LTIMindtree was selected as a strategic partner by a leading US insurance and financial services company for a multi-year engagement covering application management, infrastructure operations, and end-user services, driven by an AI-led delivery model. This is a $ 155 million Total Contract Value (TCV) for a 5-year term.

LTIMindtree was also selected by a leading manufacturer to consolidate its technology landscape with a multi-year agreement that spans applications, cloud, infrastructure, cybersecurity, data, and AI services.

As of 10:32 am, LTIMindtree shares traded 6.35% higher at ₹5,999, underperforming the NIFTY Next50 index which was down 0.9%.