TCS Q3 Profit Plunges 14% to ₹10,657 Crore Amid New Labor Codes, Legal Battles

• TCS's Q3 FY26 consolidated net profit dropped 14% year-on-year to ₹10,657 crore, primarily due to exceptional expenses.
• New labor codes in India led to an exceptional expense of ₹2,128 crore, mainly from increased gratuity and long-term compensated absences.
• A legal dispute in the United States with Computer Sciences Corporation resulted in another exceptional item of ₹1,010 crore.
• Restructuring costs significantly decreased by 77% to ₹253 crore in Q3 FY26, indicating the company is moving past the major financial impact of layoffs.
• TCS is focusing on an AI-first transformation, with over 2.17 lakh employees skilled in advanced AI and increased recruitment of fresh graduates.

Why It Matters: TCS Q3 profit hit by new labor codes and legal dispute, but restructuring costs are declining.