Overview
- The stock fell about 7% intraday on January 20 to a low near Rs 5,987 even as several brokerages raised target prices.
- Q3 FY26 net profit came in at Rs 970.6 crore, down 10.5% year on year, after a Rs 590 crore exceptional provision tied to India’s new Labour Codes, with the company indicating potential future accounting adjustments as rules are clarified.
- Revenue from operations rose 11.6% year on year to Rs 10,781 crore and 3.7% sequentially, while profit declined 30.7% versus the previous quarter.
- Management reported 2.4% sequential constant-currency growth and a record quarterly total contract value of $1.69 billion, highlighting steady deal conversion and traction in AI-led offerings.
- Broker notes pointed to expected wage hikes in Q4 and Q1 that could trim margins by up to about 1 percentage point per quarter, even as they remained constructive on revenue momentum and raised target valuations.