India’s top six IT companies – TCS, Infosys, HCLTech, Wipro, Tech Mahindra, and LTIMindtree – took a combined hit of about Rs 5,400 crore on account of the implementation of new labour codes, the one-time charge eroding their Q3 FY26 earnings performance substantially.
The new regulations, which consolidate 29 existing labour laws, have forced a structural shift in how companies calculate employee benefits.
The country’s largest IT services exporter, Tata Consultancy Services (TCS), bore the heaviest burden, reporting a “statutory impact” of Rs 2,128 crore. The provisioning led to a 13.9 per cent drop in net profit to Rs 10,657 crore.
TCS CFO Samir Seksaria noted that the hit included Rs 1,800 crore for gratuity and Rs 300 crore for leave encashment, warning that the codes will continue to shave 0.100.15 per cent off margins moving forward.
Infosys too reported a one-time exceptional charge of Rs 1,289 crore. The Bengaluru-based firm saw its net profit decline 2.2 per cent to Rs 6,India’s top six IT companies – TCS, Infosys, HCLTech, Wipro, Tech Mahindra, and LTIMindtree – took a combined hit of about Rs 5,400 crore on account of the implementation of new labour codes, the one-time charge eroding their Q3 FY26 earnings performance substantially.
The new regulations, which consolidate 29 existing labour laws, have forced a structural shift in how companies calculate employee benefits.
The country’s largest IT services exporter, Tata Consultancy Services (TCS), bore the heaviest burden, reporting a “statutory impact” of Rs 2,128 crore. The provisioning led to a 13.9 per cent drop in net profit to Rs 10,657 crore.
TCS CFO Samir Seksaria noted that the hit included Rs 1,800 crore for gratuity and Rs 300 crore for leave encashment, warning that the codes will continue to shave 0.100.15 per cent off margins moving forward.
Infosys too reported a one-time exceptional charge of Rs 1,289 crore. The Bengaluru-based firm saw its net profit decline 2.2 per cent to Rs 6, Latest News [ SOBAN NEWS: International and National ]
