It’s earnings season in Bengaluru, and for Infosys, the story for Thursday, January 15, 2026, is a classic “good news, bad news” sandwich. While the company is riding high on its AI platform, Topaz, it just took a massive ₹1,289 crore gut punch from the government’s new labour codes.
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The thing is, Infosys isn’t alone. Or nothing. Let’s be real, the entire IT sector is currently recalculating every penny they owe their employees. Those too. Earlier this week, TCS admitted to a ₹2,128 crore hit, and HCLTech set aside about ₹719 crore. The thing is, when the government consolidated 29 laws into four new codes last November, it changed the very definition of “wages.” And here’s the kicker—because basic pay now has to be at least 50% of your paycheck, things like gratuity and leave encashment suddenly became a lot more expensive for the bosses.
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The Infosys “Q3 Ledger”: Field Notes
It’s an ongoing situation where the “exceptional hit” makes the profit look worse than the business actually is.
The Profit Dip: Net profit fell about 2.2% to ₹6,654 crore. The thing is, if you strip away that labour code provision, they actually had a pretty decent quarter.
The AI Surge: CEO Salil Parekh is basically betting the house on Topaz. The thing is, they’re currently working on over 4,600 AI projects. And here’s the messy bit—their AI agents have already written 28 million lines of code. It’s an ongoing situation where AI isn’t just a buzzword; it’s the actual engine keeping their market share from slipping.
The Revenue Hike: Despite the profit hit, Infosys raised its revenue guidance for the year to 3–3.5%. The thing is, they just bagged 4.8 billion in large deals. That’s a lot of confidence in a “seasonally weak” quarter.
Hiring is Back: While TCS saw its headcount drop by 11,000, Infosys actually added 5,043 people. The thing is, they’re trying to reskill their “human resource pool” for an AI-augmented world. Or nothing. Let’s be real, you can’t build 500+ AI agents without more hands on deck.
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IT Earnings Tracker: The “Labour Code” Provisions
| Company | Labour Code Hit (Q3FY26) | Net Profit (YoY) | Key Growth Driver |
| TCS | ₹2,128 Crore | Down 13.9% | $1.8B AI services revenue |
| Infosys | ₹1,289 Crore | Down 2.2% | Topaz AI Platform |
| HCLTech | ₹719 Crore | Down 11.2% | Software & GenAI services |
And Here’s the Kicker…
The stock market actually cheered this news. The thing is, investors saw the higher revenue guidance and the massive deal wins as a sign that the “spending winter” is over. Infosys shares ended Wednesday slightly higher, and their ADRs (U.S. shares) actually surged over 10% overnight.
It’s an ongoing situation where the labour code hit is a “one-time” statutory headache, but the AI-led growth looks like it has legs. The thing is, by next quarter, these provisions will be old news, and we’ll see if the “Topaz” hype actually translates into bigger margins.
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End…
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