LTIMindtree to Roll Out Salary Increments in Two Phases

IT services major LTIMindtree has officially announced the commencement of its annual wage hike cycle starting in the fourth quarter (Q4) of FY26.

In a strategic departure from traditional single-tranche rollouts, the company will implement the increments in a phased manner, covering approximately 50% of its workforce in the first phase.

The “New Normal” Staggered Strategy

During the Q3 earnings call on January 19, 2026, CFO Vipul Chandra detailed that the salary increments would be spread across two consecutive quarters—Q4 FY26 and Q1 FY27.

The first tranche is effective from January 1, followed by a second tranche on April 1.

CEO Venu Lambu described this two-stage process as the firm’s “new normal,” designed to provide the company with financial flexibility to navigate industry inflection points, particularly the shift toward AI-led services.

Impact on Margins and Efficiency

The company primarily aims the phased rollout at protecting operating margins.

The firm anticipates a cost impact of approximately 1% in each of the two quarters.

To neutralize this pressure, LTIMindtree plans to leverage its “New Horizon” enterprise-wide program, which focuses on operational efficiencies and cost optimization.

LTIMindtree Financial and Workforce Snapshot

Despite the planned hikes, LTIMindtree reported a 10.5% year-on-year decline in consolidated net profit to ₹970.6 crore for the October-December quarter.

This dip was largely attributed to a one-time provision of ₹590 crore. The expense was related to the implementation of new government Labour Codes.

However, revenue from operations showed resilience, growing 11.6% to ₹10,781 crore.

As of December 31, 2025, the company’s total headcount stood at 87,958.

Notably, the firm continues to attract talent, having added 1,511 employees and 1,736 freshers in the third quarter alone.

Attrition rates have also shown signs of cooling, moderating to 13.8% from 14.2% in the previous quarter.

Leadership remains optimistic about a return to double-digit year-on-year growth as the fiscal year concludes.

The focus remains on “profitable growth” through disciplined execution and a specialized focus on AI-led offerings.

Note: We are also on WhatsApp, LinkedIn, and YouTube to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, YouTube – Click Here, and LinkedIn– Click Here.