From TCS to LTI MindTree, how the labour code changes impacted IT profit in Q3
The implementation of new labour codes in November 2025 has led to a one-time hit of over Rs 5,000 crore for most IT companies in the December quarter. TCS, Infosys, HCLTech, Wipro, Tech Mahindra, and LTIMindtree have all reported major losses. These codes may also result in a 5% increase in recurring employee costs, according to Jefferies.