TCS Q3 Profit Plunges 14% Amid Triple Blow: New Labor Codes, US Legal Claim, Restructuring
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CNBC Awaaz•12-01-2026, 16:49
TCS Q3 Profit Plunges 14% Amid Triple Blow: New Labor Codes, US Legal Claim, Restructuring
- •TCS's Q3 net profit fell 14% to 10,657 crore rupees due to exceptional expenses.
- •New labor codes in India imposed an additional burden of 2,128 crore rupees, primarily from gratuity and long-term leave benefits.
- •A 1,010 crore rupee legal claim in the US from Computer Sciences Corporation (CSC) also impacted profits.
- •Restructuring costs amounted to 253 crore rupees, a 77% decrease from the previous quarter.
- •TCS is focusing on AI-first transformation, with over 2.17 lakh employees possessing advanced AI skills.
Why It Matters: TCS faced a significant profit drop in Q3 due to new labor codes, a US legal claim, and restructuring costs.
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