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Friday, February 27, 2026 3:01 PM

Infosys

Infosys limits WFH exemptions to five days per quarter, aligning with stricter policies at TCS and Wipro

Infosys has further tightened its work-from-home (WFH) framework, placing a cap on exemptions from working at the office (WFO) at five days per quarter, except in cases involving serious medical conditions of employees or their dependents. Any request beyond this limit will require valid medical documentation, including a doctor’s verification. Currently, employees at job level 5 and below are mandated to work from the office for at least 10 days every month. The new restriction specifically applies to requests seeking additional WFH days beyond this requirement. Managers have informed teams that there has been a sharp rise in last-minute WFH requests, prompting the company to enforce stricter planning and system-based pre-approvals rather than informal email requests. Managers have also clarified that requests not aligned with policy leave them with little flexibility. While Infosys has not officially commented, people familiar with the matter said that the company continues to allow up to 30 additional remote working days in cases of critical medical emergencies. The move is notable as Infosys leadership had recently stated that no changes were planned to its hybrid working approach. CEO Salil Parekh, during a post-earnings interaction earlier this month, had emphasised flexibility in how employees engage with the company and its clients. Infosys, which employs over 300,000 people, introduced its return-to-office policy in November 2023, requiring a minimum of 10 in-office days per month, though strict enforcement began in March last year. Employees must also spend at least three hours per day in the office. The tightening of norms mirrors similar steps by peers. Wipro has revised its policy effective January 1, requiring employees to work from the office three days a week for at least six hours daily, while cutting allowable remote days to 12 from 15 earlier. Meanwhile, TCS implemented a five-day office workweek last year and linked variable pay to office attendance, allowing limited WFH only for health-related reasons. Industry observers say these measures reflect the IT sector’s push for greater in-person collaboration amid shorter project cycles and slowing revenue growth, especially as AI-driven automation reduces dependence on large, people-intensive delivery models. Staffing experts suggest that 2026 could see more firms moving towards full-time office attendance, at least on designated workdays, to maintain agility and team coordination. Source: Economic Times

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Q3 Results: New Labour Codes Dent IT Majors’ Profits by ₹5,400 Crore

India’s leading IT services firms reported a sharp one-time earnings impact in the December quarter as the implementation of the new labour codes forced changes in employee benefit provisioning. Collectively, the country’s top six IT companies—TCS, Infosys, HCLTech, Wipro, Tech Mahindra and LTIMindtree—absorbed a cumulative hit of around ₹5,400 crore, significantly weighing on their Q3 FY26 profit numbers. The new labour framework, which consolidates 29 existing laws, has altered the way companies account for benefits such as gratuity and leave encashment, resulting in substantial upfront provisions. Tata Consultancy Services (TCS), India’s largest IT exporter, faced the biggest impact. The company reported a statutory charge of ₹2,128 crore, leading to a 13.9% fall in net profit to ₹10,657 crore. CFO Samir Seksaria explained that the provision included roughly ₹1,800 crore towards gratuity and ₹300 crore for leave encashment. He also cautioned that the new codes are expected to reduce margins by 10–15 basis points on an ongoing basis. Infosys reported an exceptional one-time charge of ₹1,289 crore, which pushed its net profit down 2.2% year-on-year to ₹6,654 crore. CEO Salil Parekh said the labour codes would have a continuing annual margin impact of about 15 basis points. HCLTech recorded a one-off provision of ₹956 crore, dragging net profit down 11.2% to ₹4,076 crore. The company noted that, excluding this impact, profits would have registered growth. Wipro’s net profit declined 7% to ₹3,119 crore, affected by a ₹302.8 crore labour code-related charge along with restructuring costs. Tech Mahindra was the only major IT player to post profit growth during the quarter, with net profit rising 14% to ₹1,122 crore on improved margins. However, it too set aside around $30 million (approximately ₹272 crore) for compliance with the new wage codes. CFO Rohit Anand warned of a quarterly margin impact of about 20 basis points. LTIMindtree accounted for a one-time cost of ₹590 crore in Q3 due to the labour code implementation, adding to the sector-wide earnings pressure. Despite the near-term impact on profitability, IT leaders struck an optimistic note on business fundamentals, citing strong deal pipelines and accelerating demand driven by artificial intelligence (AI). Infosys posted an 8.9% rise in revenue to ₹45,479 crore in Q3 FY26 and raised its full-year revenue growth guidance to 3–3.5% in constant currency terms. The company reported large deal wins worth $4.8 billion during the quarter, with over half coming from new clients. Parekh highlighted strong momentum in AI adoption across customers, particularly in financial services, energy and utilities. Wipro’s revenue grew 5.5% year-on-year to ₹23,555.8 crore, supported by vendor consolidation and AI-led modernisation deals. CEO and MD Srini Pallia said enterprises globally are increasingly treating AI as a board-level priority, positioning the company well for future growth. Tech Mahindra secured new deals worth $1.096 billion in Q3, with CEO Mohit Joshi describing the demand environment as strong across regions and industry verticals. TCS reported a 4.86% increase in revenue to ₹67,087 crore. CEO K Krithivasan said AI and data-led services were key growth drivers, while COO Aarthi Subramanian noted that AI revenues rose 17% quarter-on-quarter to an annualised run rate of $1.8 billion. HCLTech posted a 13.3% rise in revenue to ₹33,872 crore, driven by a sharp sequential increase in advanced AI revenues and solid growth in engineering and R&D services. The company recorded $3 billion in net new bookings, up 43.5% year-on-year. CEO C Vijayakumar emphasised the firm’s focus on AI-powered offerings such as robotics, AI factories, custom silicon and large-scale digital transformation programmes. Hiring trends during the quarter were mixed. TCS reported a net reduction of over 11,000 employees, while Infosys and Wipro added 5,043 and 6,529 staff respectively. HCLTech indicated a strategic shift towards hiring “elite engineers,” offering significantly higher compensation to attract top AI talent. Source: PTI

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Infosys rolls out 80% average Q1 bonus, highest in recent quarters

Infosys has announced performance bonuses averaging 80% for employees for the April–June quarter of FY26, marking a significant jump from the 65% average payout in the previous quarter. According to internal communication reviewed by ET, bonus payouts this quarter range between 75% and 89%, depending on employee performance and role. The beneficiaries include employees in Position Levels (PL) 4, 5, and 6, which cover the majority of Infosys’ 323,000-strong workforce. PL4 includes roles such as senior engineers, technology analysts, and consultants; PL5 covers track leads; while PL6 comprises managers, senior managers, and delivery managers (excluding vice presidents). PL4 employees: 80–89% bonus PL5 employees: 78–87% bonus PL6 employees: 75–85% bonus The payouts will be credited along with the August salary. The company emphasized in its communication that the differentiated bonuses are aligned with its goal of fostering a high-performance culture. The move comes at a time when the IT sector is facing delayed wage hikes and job uncertainties, with TCS recently announcing layoffs of around 12,000 employees. Despite the challenging environment, Infosys has delivered strong results in Q1 FY26, reporting an 8.7% YoY rise in net profit to ₹6,921 crore and a 7.5% revenue growth to ₹42,279 crore. Alongside the bonus announcement, Infosys has also rolled out select promotions across its Indian delivery centres. Promotions were restricted to critical roles, based on skills, experience, and team contributions, with employees typically receiving such career advancements once in four years. An employee told ET the announcement would help boost morale amid ongoing industry headwinds. Source: Economic Times

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No Relief for Infosys: Indian Government Maintains ₹32,000-Crore Tax Demand Amidst Canadian Fine

Infosys is facing a substantial tax challenge from the Indian government, which has refused to reduce a ₹32,000-crore ($4 billion) tax demand related to GST regulations. The demand, issued last month, pertains to services received from Infosys’s overseas branches between July 2017 and the fiscal year 2021-22. This amount represents about 85% of Infosys’s revenue for the quarter ending June 30. Infosys has requested a ten-day extension to respond after recent discussions with Indian Income Tax department officials. Despite this, the Indian authorities have indicated they will not ease the demand. In a recent update, Infosys confirmed that the tax demand for the 2017-18 financial year, totaling ₹38.98 billion, has been resolved. The company maintains it has met all tax obligations and adheres to both central and state regulations. In addition to this domestic issue, Infosys has also faced scrutiny from Canada. In May 2024, the Canadian government imposed a fine of CAD 134,822.38 (₹82 lakh) on Infosys for underpaying the employee health tax for the fiscal year ending December 31, 2020. Infosys disclosed this penalty in a regulatory filing received from Canada’s Finance Ministry on May 9. The broader IT sector has also been impacted, with significant declines in stock prices for other major players like Tata Consultancy Services and Satyam Computer Services. This downturn follows Infosys’s stock performance, which saw profit-taking after meeting market expectations and experiencing a prior price surge. Reference by Mint

No Relief for Infosys: Indian Government Maintains ₹32,000-Crore Tax Demand Amidst Canadian Fine Read More »