Analyst Concall
LTIMindtree plans wage hike in Q4, 50% staff may get raises
This story was originally published at 20:47 IST on 19 January 2026
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--LTIMindtree: Growth momentum in Q4 to remain in line with past 3 qtrs
--CONTEXT: LTIMindtree mgmt's comments in post-earnings concall with analysts
--LTIMindtree: Improved deal momentum, traction in AI to drive Q4 growth
--LTIMindtree: Plan wage hike in Q4, expect 50% staff to get raises
--LTIMindtree: New deals contract cycle 3-5 years
--LTIMindtree: Working to improve margins going forward
--LTIMindtree: See about 1% margin impact from wage hikes Q4 FY26, Q1 FY27
--LTIMindtree: Working to mitigate impact of wage hikes
--LTIMindtree: Awaiting clarity on recurring impact of new labour codes
--LTIMindtree: To detail future growth strategies by March
--LTIMindtree: Deal pipeline of $300 mln-$500 mln fairly decent
--LTIMindtree: No change in hedging policy
By Arya S. Biju and Narayana Krishna
MUMBAI – Technology consulting and digital solutions company LTIMindtree Ltd. plans to undertake wage hikes covering around 50% of its staff starting from the March quarter, the management told investors and analysts in a post-earnings call Monday. "...we will be starting the wage hikes from Q4 (Jan-Mar)," a top company official said. "But instead of doing it in one go, we'll be probably spreading it out over a couple of quarters."
The company expects an impact of around 1% on its margins for the March and the June quarters from the wage increases, the management said, adding that it will work to mitigate this impact. The company remains confident of closing the financial year 2025-26 (Apr-Mar) with a better earnings before interest and tax margin than in FY25 despite fewer working days in the March quarter than in the trailing quarter. The company has reported an EBIT margin of 16.1% for the December quarter, up 20 basis points on quarter.
The company expects its growth momentum in the March quarter to remain similar to that seen in the previous three quarters. The management said its focus will remain on delivering near-double-digit growth in FY26. "This confidence is supported by our execution discipline, improved deal momentum, and the traction we are seeing across our AI (artificial intelligence)-led offerings," a top official said.
Furthermore, the company is preparing for the next phase of its growth journey in FY27 and beyond, anchored by the strategic repositioning of the brand, sharpening its ability to compete more effectively in the marketplace, and delivering a tangible outcome for its clients, the management said. "Before this year (FY26) ends, we will look for an opportunity where we come and present to you the forward-looking strategy, because it's still a work in progress. We need to take it to the board. And then we'll share it," a company official said.
On the deals front, the company said its pipeline of $300 million-$500 million looks fairly decent. In the December quarter, the company reported an order inflow of $1.69 billion, up from $1.59 billion in the trailing quarter and $1.68 billion a year ago. The average contract cycle of these new deals is 3-5 years, LTIMindtree said.
The company announced its December quarter earnings after market hours Monday. Its consolidated net profit for the reporting quarter fell around 31% sequentially and 11% on year to INR 9.71 billion, missing analysts' expectations of INR 14.21 billion by a wide margin. Its revenue for the quarter rose around 4% sequentially and 12% on year to INR 107.81 billion, in line with the Street's view of INR 107.25 billion.
The company's bottom line for the quarter was hit by a one-time cost of INR 5.90 billion on account of the new labour codes. Adjusted for the one-time cost, the company's consolidated net profit for the quarter was INR 15.61 billion, way higher than what analysts had expected. The company said it is waiting for clarifications and the issue of certain rules to gauge the recurring impact of the new codes. "We don't expect the impact (recurring impact of the new labour codes) to be very material," a top company official said.
On currency hedging, LTIMindtree's management said it is not looking to change the policy as it has worked well for the company. "Volatility in a quarter and quarter basis in the hedges performance is not what we look at," it said. "We look at the overall... performance. And that's where we want to maintain the consistency over a period of time."
Monday, shares of LTIMindtree closed nearly 2% higher at INR 6,407 on the National Stock Exchange. End
Edited by Rajeev Pai
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