Tech Mahindra Q3 Profit Hit by New Labor Codes; Rs 272 Crore Exceptional Charge
Business
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Moneycontrol•17-01-2026, 02:46
Tech Mahindra Q3 Profit Hit by New Labor Codes; Rs 272 Crore Exceptional Charge
- •Tech Mahindra reported a Rs 272.4 crore exceptional charge in Q3 FY26 due to the statutory impact of new labor codes.
- •The charges include increased gratuity and leave liability from past service costs.
- •CFO Rohit Anand stated an ongoing margin impact of 10-20 basis points, which the company plans to offset.
- •Other IT majors like TCS, HCLTech, Infosys, and Wipro also reported significant exceptional charges due to the new labor codes.
- •Despite the charges, Tech Mahindra's consolidated net profit rose 14.1% YoY to Rs 1,122 crore, with revenue up 8.3% to Rs 14,393 crore.
Why It Matters: New labor codes led to a Rs 272 crore exceptional charge for Tech Mahindra, impacting Q3 profit.
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