TCS Q3 Profit Hit by Rs 2,128 Crore Statutory Impact from New Labour Codes

• TCS reported an exceptional item of Rs 2,128 crore impacting its Q3 profit due to new labour codes in India.
• Consolidated net profit fell 14% YoY to Rs 10,657 crore for the October-December quarter of FY26.
• The impact primarily stems from changes in wage definition, affecting gratuity (Rs 1,816 crore) and long-term compensated absences (Rs 312 crore).
• New labour codes, effective November 21, mandate basic pay to be at least 50% of CTC, preventing companies from allocating large portions to allowances.
• TCS also reported Rs 1,010 crore for a legal claim in the US and Rs 253 crore for restructuring costs.

Why It Matters: TCS's Q3 profit was significantly impacted by new Indian labour codes and other exceptional items.