Infosys Faces Rs 1,289 Crore Hit Amid New Labour Code Challenges

Infosys reported a one-time charge of Rs 1,289 crore due to new Indian labour codes, impacting its December quarter profits, which fell 2.2% to Rs 6,654 crore. Despite this, revenue rose by 8.89% to Rs 45,479 crore and the company increased its FY26 revenue growth guidance.

Infosys reported a significant Rs 1,289 crore one-time charge in its December quarter earnings, attributing the impact to the Indian government's new labour codes. The implementation of these codes has consolidated 29 existing labour laws, resulting in increased liabilities related to employee benefits.

Despite the substantial charge, Infosys' revenue grew by 8.89% to Rs 45,479 crore, compared to the previous year's corresponding period. However, the company's net profit saw a slight decline of 2.2%, settling at Rs 6,654 crore. The IT giant has raised its revenue growth guidance for FY26 to 3-3.5% in constant currency, indicating optimism for the future.

Infosys also highlighted its strides in AI integration, with its 'Topaz' platform boosting market share. The company secured a robust USD 4.8 billion in large deal TCV during the quarter, with a substantial portion being net new. Infosys completed its largest-ever buyback at Rs 18,000 crore, underscoring a strong financial strategy amid challenging conditions.

(With inputs from agencies.)