Infosys Faces Rs 1,289 Crore Hit from New Labor Codes; Q3 Profit Misses Estimates

• Infosys reported a Rs 1,289 crore exceptional charge in its December quarter earnings due to new labor codes.
• The charge includes increased gratuity and leave liability from past service costs.
• Other IT majors like TCS (Rs 2,128 crore) and HCLTech (Rs 956 crore) also reported similar exceptional charges.
• Infosys's Q3 FY26 consolidated net profit fell 2.2 percent year-on-year to Rs 6,654 crore, missing Street expectations.
• Despite the hit, Infosys raised its FY26 revenue growth guidance to 3-3.5 percent.

Why It Matters: Infosys took a significant financial hit from new labor codes, impacting Q3 profit, but raised revenue guidance.