IT giants hit with ₹5,400cr labor code cost
India's six biggest IT companies—including TCS, Infosys, HCLTech, Wipro, Tech Mahindra, and LTIMindtree—were hit with a one-time cost of ₹5,400 crore in Q3 FY26.
This is thanks to new labor codes rolled out in November 2025 that combined 29 old laws into four and changed how gratuity and leave benefits are calculated.
TCS took the biggest hit
TCS faced the largest charge at ₹2,128 crore (mostly for gratuity), dropping its net profit by nearly 14%.
Infosys also took a big hit with a ₹1,289 crore charge and saw profits dip too.
HCLTech, Wipro, LTIMindtree, and Tech Mahindra weren't spared either—though interestingly, Tech Mahindra's profit still went up by 14% despite the extra cost.
What's next for these companies?
These labor code changes aren't just a one-time thing—they'll keep squeezing margins for these tech giants going forward.
If you're curious about how big policy shifts can shake up even the biggest players (and maybe your future employer), this is one to watch.