Premium

Infosys’ profit falls 2.2% in Q3 under the impact of new labour codes

The profit was impacted by total exceptional expenses of Rs 1,289 crore due to the impact of labour codes in the reporting quarter.

infosysFor FY26, Infosys has given a revenue guidance growth of 3.0-3.5 per cent in constant currency and operating margin of 20-22 per cent.

Infosys Ltd has reported a 2.2 per cent decline in its consolidated net profit to Rs 6,654 crore for the third quarter (Q3) ended December 2025 as compared to Rs 6,806 crore in the year-ago period. The profit was impacted by total exceptional expenses of Rs 1,289 crore due to the impact of labour codes in the reporting quarter.

However, the company’s revenue rose by 8.9 per cent to Rs 45,479 crore in Q3 from Rs 41,764 crore a year ago.

“The adjustments for labour codes represent an increase in gratuity liability arising out of past service cost and increase in leave liability together by $143 million (Rs 1,289 crore) which is recognised in the Consolidated Statement of Comprehensive Income,” it said.

For FY26, Infosys has given a revenue guidance growth of 3.0-3.5 per cent in constant currency and operating margin of 20-22 per cent.

Infosys delivered a strong Q3 performance demonstrating how our differentiated value propositions in enterprise AI, through Infosys Topaz, are consistently driving higher market share,” said Salil Parekh, chief executive officer and managing director. “Clients increasingly view Infosys as their AI partner with demonstrated expertise, innovation capabilities and strong delivery credentials. This has helped them unlock business potential and enhanced value realisation,” he said.

“Central to this journey is our commitment to reskill, transform and empower our dedicated human resource pool to drive success in an AI augmented world,” Parekh said.

The company’s shares closed flat at Rs 1,599.05 on the BSE on Wednesday.

 

Latest Comment
Post Comment
Read Comments
Advertisement
Loading Taboola...
Advertisement
Advertisement
Advertisement
Advertisement