New Delhi, Jan. 14 -- Even as artificial intelligence (AI)-driven deal wins supported revenue growth for India's top IT firms in the December quarter, profits have been affected due to the implementation of new labour codes, according to Tata Consultancy Services (TCS).

TCS Reports Significant Profit Impact TCS reported a Rs 2,128-crore hit to profit during the quarter as employee costs rose following the new labour codes. This included Rs 1,816 crore for additional gratuity costs and Rs 312 crore for long-term compensated absences.

The company attributed the incremental impact primarily to changes in wage definitions under the new codes.

The new labour codes, effective November 21, 2025, consolidate 29 existing labour laws into four c...