India, Jan. 19 -- While major Indian IT firms including TCS, Infosys, and Wipro reported profit declines this quarter, Tech Mahindra delivered a 14.1% year-on-year increase in consolidated net profit. The company's profit reached Rs 1,122 crore for the third quarter ending 31 December 2025, up from Rs 983 crore in the previous year.

The Indian IT sector faced significant headwinds this quarter due to the implementation of the New Labor Code. This regulatory change requires companies to adjust their salary structures, often leading to higher provisions for gratuity and leave encashment. Tech Mahindra took a one-time exceptional hit of Rs 272.4 crore because of these rules.

Additionally, the December quarter traditionally sees lower produ...