IT giant Infosys disclosed a decrease in its consolidated net profit for the October–December quarter, primarily attributed to the effects of the recent Labour Code regulations in India. The company’s net profit dropped by 2.2% year-on-year to Rs 6,666 crore in Q3 FY26, down from Rs 6,822 crore in the same period last fiscal year. Quarter-on-quarter, the profit saw a significant decline of nearly 9.6% to Rs 7,375 crore compared to the previous quarter of Q2 FY26.
Infosys faced a one-time impact of Rs 1,289 crore due to the implementation of the new Labour Code norms in India, as per the company’s consolidated financial statements. Despite the profit pressure, the company’s revenue performance remained robust, with a 9% year-on-year increase to Rs 45,479 crore during the quarter. Infosys also revised its revenue growth outlook for the full financial year, raising it to 3–3.5% in constant currency terms for FY26 while maintaining the operating margin guidance between 20–22%.
Salil Parekh, CEO and MD of Infosys, commented on the strong Q3 performance, highlighting the company’s enterprise AI offerings through Infosys Topaz that have consistently boosted market share. On the stock market front, Infosys shares have shown mixed returns to investors, with over 16% returns in the last five years and around 6% returns over the past three years. However, the shares witnessed a decline of 17.88% over the last year and a marginal slip of 0.31% in the recent one-year period. Infosys stock also dropped by 2.79% over the last five trading sessions, closing at Rs 1,608.9 on the Indian stock market post the quarterly results announcement.
