Tech Mahindra Q3 profit rises 14% despite labour code costs

Tech Mahindra reported a 14% year-on-year increase in consolidated net profit for the December quarter, supported by strong margin expansion, even as the company took one-time exceptional charges linked to the implementation of new labour codes.

The Pune-headquartered IT services firm posted a net profit of Rs 1,122 crore for the third quarter of FY26, compared with Rs 983.2 crore in the same period last year. However, it fell 6% sequentially due to a one-time exceptional charge of Rs 272.4 crore related to the implementation of the new labour codes, which increased gratuity and leave-related liabilities.

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