Mumbai — IT major Infosys on Wednesday reported a year-on-year decline in its consolidated net profit for the October–December quarter (Q3 FY26), primarily due to the impact of the Indian government’s newly implemented Labour Code norms.
The company said its consolidated net profit fell 2.2 per cent year-on-year to Rs 6,666 crore in Q3 FY26, compared with Rs 6,822 crore in the corresponding quarter of the previous financial year. On a quarter-on-quarter basis, profit declined sharply by nearly 9.6 per cent from Rs 7,375 crore recorded in Q2 FY26, according to its stock exchange filing.
Infosys disclosed that it incurred a one-time charge of Rs 1,289 crore during the quarter as a result of implementing the new Labour Code norms in India.
Despite pressure on profitability, the company posted a strong revenue performance. Revenue from operations rose 9 per cent year-on-year to Rs 45,479 crore during the quarter.
Along with its Q3 results, Infosys revised its revenue growth outlook for the full financial year. The company raised its FY26 revenue guidance to 3–3.5 per cent in constant currency terms, while maintaining its operating margin guidance at 20–22 per cent.
Commenting on the performance, Infosys CEO and Managing Director Salil Parekh said the company delivered a solid third-quarter showing, driven by its differentiated offerings in enterprise artificial intelligence through Infosys Topaz, which continue to help it gain market share.
On the stock market front, Infosys shares have delivered mixed returns. As per NSE data, the stock has generated over 16 per cent returns over the past five years and around 6 per cent over the last three years. However, it has declined 17.88 per cent over the past year and slipped marginally by 0.31 per cent in the recent one-year period.
The stock is also down 2.79 per cent over the last five trading sessions. Ahead of the Q3 results announcement, Infosys shares closed Wednesday’s session at Rs 1,608.9, up Rs 9.9 or 0.62 per cent on the Indian stock market.
With inputs from IANS