On November 21, 2025, the Government of India notified provisions of the Labour Codes, which consolidate 29 existing labour laws into a unified framework governing employee benefits during and after employment. The changes introduce, among other measures, a uniform definition of wages and enhanced leave-related benefits.
The Labour Codes have resulted in an increase in gratuity liability due to past service costs and higher leave liability, together amounting to $143 million (Rs 1,289 crore). This impact has been recognized in the Consolidated Statement of Comprehensive Income.
On a year-on-year (YoY) basis, the company's net profit declined 2.2%, while revenue increased 8.9% in Q3 FY26. Profit before tax (PBT) stood at Rs 9,229 crore in Q3 FY26, down 9.78% quarter-on-quarter (QoQ) and 4.56% year-on-year (YoY).
Operating profit for Q3 FY26 stood at Rs 8,355 crore, declining 6.3% YoY and 10.7% QoQ. Operating margin slipped to 18.4% during the quarter, compared with 21.3% in Q3 FY25 and 21% in Q2 FY25. For FY26, the company maintained its operating margin guidance at 20%-22%.
During Q3 FY26, constant currency (CC) revenue grew by 1.7% YoY and 0.6% QoQ. In dollar terms, the IT firm reported revenues of $5,099 million, registering a 3.2% year-on-year growth for the quarter ended 31 December 2025.
Free cash flow (FCF) as of 31 December 2025 was Rs 8,176 crore, down 23.20% YoY. FCF conversion was at 113.1% of net profit. The total contract value (TCV) of large deal wins was $4.8 billion in Q3 FY26, with a net new of 57%.
The company had 1,949 active clients as of 31 December 2025, compared with 1,876 active clients as of 31 December 2024. Total headcount as of 31 December 2025 was 337,034, up 4.22% YoY. In the last twelve months, the IT services attrition rate stood at 12.3% as of 31 December 2025, as against 13.7% as of 31 December 2024.
Salil Parekh, CEO and MD, said, “Infosys delivered a strong Q3 performance, demonstrating how our differentiated enterprise AI offerings, through Infosys Topaz, are consistently driving higher market share. Clients increasingly view Infosys as their preferred AI partner, given our expertise, innovation capabilities, and strong delivery track record. This has helped them unlock business potential and enhance value realization. Central to this journey is our commitment to reskill, transform, and empower our workforce to succeed in an AI-augmented world.”
Infosys is a global leader in next-generation digital services and consulting.
"Prevent unauthorised transactions in your account ; Update your mobile numbers/email IDs with Us. Receive information of your transactions directly from Exchange on your mobile/email at the end of the day” - Issued in the interest of Investors"
"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
"No need to issue cheques by investors while subscribing to Equity IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."