Tata Technologies and LTTS Report Q3 Profit Declines Amid New Labour Code Costs

Tata Technologies reported a 96% year-on-year decline in consolidated net profit to Rs 6.64 crore for Q3 FY26, mainly due to a one-time Rs 139.87 crore charge linked to new Indian labour codes affecting gratuity and compensated absences. Despite this, revenue rose about 3.7% to Rs 1,365.73 crore, with management optimistic about a strong Q4 recovery. Meanwhile, L&T Technology Services saw a 6% profit drop to Rs 302.6 crore, citing a Rs 35.4 crore labour code provision, alongside a 10.2% revenue increase. LTTS is restructuring to focus on profitability, with brokerages lowering growth forecasts and target prices.