{
  "id": 9910028,
  "title": "Labour Code impact, legal claim provision drag down TCS Q3 net profit by 14% to ₹10,720 crore",
  "url": "https://urgent.news/2026/09/26/labour-code-impact-legal-claim-provision-drag-down-tcs-q3-net-profit",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-26T04:25:39.000Z",
  "source": {
    "name": "The Hindu",
    "slug": "the-hindu",
    "url": "https://www.thehindu.com/business/Industry/tcs-q3-profit-drops-14-to-10657-crore/article70501246.ece"
  },
  "original_language": "en",
  "account": "Tata Consultancy Services (TCS) reported a 14% decrease in net profit for the third quarter of 2025, dropping to ₹10,720 crore from ₹12,444 crore the previous year. This decline was primarily due to factors such as the impact of new labour codes, amounting to ₹2,128 crore, provisions towards legal claims of ₹1,010 crore, and expenses related to employee terminations totaling ₹253 crore. The company also laid off 1,800 employees during the quarter, with the process expected to continue. As of December 31, 2025, TCS had a global workforce of 582,163 employees, with an attrition rate of 13.5% over the past 12 months. Revenue for the quarter grew by 5% year-over-year to ₹67,087 crore. The board has declared a dividend of ₹57 per share, with the record date set for January 17, 2026, and payment scheduled for February 3, 2026. Despite the profit decline, TCS's annualized revenue from AI services reached $1.8 billion, growing at a rate of 17.3% quarter-over-quarter in constant currency. The operating margin remained stable at 25.2%, while the net margin increased by 40 basis points quarter-over-quarter to 20.0%.",
  "summary": "Revenue from operations in the quarter under review increased 4.86% to ₹67,087 crore from ₹63,973 crore",
  "key_points": [
    "TCS Q3 net profit down 14% to ₹10,720 crore due to labour code impact",
    "₹2,128 crore provision for legal claims dragged down profit",
    "1,800 employees laid off in Q3, attrition rate 13.5% YoY"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}