New Labour Codes Hit TCS, Infosys, HCLTech: ₹4373 Crore Spent in Q3

• TCS, Infosys, and HCLTech collectively spent ₹4373 crore in Q3 (Oct-Dec 2025) due to new labour codes, impacting profits.
• TCS reported ₹2128 crore, Infosys ₹1289 crore, and HCLTech ₹956 crore in exceptional expenses related to the new codes.
• The new labour codes, implemented in November 2025, aim to improve salary, safety, social security, and welfare for employees.
• TCS maintained a 25.2% operating margin, while Infosys's margin dropped to 18.4% from 21% due to these costs.
• Brokerages like Jefferies warn of continued margin pressure and potential lower salary hikes for IT companies due to these recurring costs.

Why It Matters: New labour codes led to significant Q3 expenses for IT giants, impacting profits and future margin outlook.