New Labour Codes Burden TCS, Infosys, HCLTech with Rs 4,000 Crore in Q3

• TCS, Infosys, and HCLTech collectively incurred over Rs 4,373 crore in exceptional charges in Q3 due to new labour codes.
• Infosys reported Rs 1,289 crore, TCS Rs 2,128 crore, and HCLTech Rs 956 crore in Q3 exceptional charges.
• The charges led to a sharp double-digit decline in profits for these major IT services companies.
• New labour codes, effective November 2025, mandate improved wages, social security, and employee welfare.
• Brokerages like Jefferies anticipate sustained margin pressure and potentially lower wage hikes due to these codes.

Why It Matters: New labour codes imposed over Rs 4,000 crore in Q3 exceptional charges on top IT firms.