TCS and Infosys Hit by Labour Codes

TCS and Infosys, two big Indian IT companies, recently reported big financial hits because of new labour laws in India.

These new laws, called Labour Codes, were put into effect on November 21, 2025.

They change how companies calculate things like gratuity (a type of retirement benefit) and leave for their employees.

TCS had to account for a big impact of Rs 2,128 crore, while Infosys had a one-time charge of Rs 1,289 crore.

Even though Infosys's revenue went up, their net profit went down by 2.2% because of these new rules.

HCLTech also had to set aside Rs 719 crore for the same reason.

The new laws are meant to make things better for workers, but they are causing some short-term financial problems for these companies.

Infosys is still optimistic about the future and has increased its revenue growth guidance for the year.

They also added more employees during the quarter and are on track to meet their hiring goals.