Infosys Faces €175,000 Fine Over Time-Tracking Compliance Issues
Infosys Penalized by French Authorities
Infosys, a leading player in the Information Technology sector, has been hit with a fine of €175,000 (approximately ₹2 crore) by French labor authorities. This penalty stems from allegations that the company's employee time-recording system fails to adhere to local labor regulations. According to a stock exchange announcement, Infosys confirmed receiving a notice from DRIEETS Ile-de-France, the regional labor authority in France, regarding the imposed fine.
The regulatory body indicated that Infosys' time-tracking system lacked full compliance with French legal standards, highlighting issues related to reliability, auditability, and monitoring for specific employee groups. Despite the fine, Infosys stated that it would not significantly affect its financial standing, operations, or overall business activities.
Details regarding the specific employee categories involved in the findings were not disclosed, nor was it mentioned if the authority mandated any changes to the time-recording system. Recently, Infosys also announced its long-term leadership succession plan, appointing Ashiss Kumar Dash as the CEO designate.
In its financial results for the first quarter of FY27 (April-June), Infosys reported a consolidated net profit of ₹7,769 crore, reflecting a 12.3% increase from ₹6,921 crore in the same quarter last year. However, there was an 8.6% decline from the ₹8,501 crore profit recorded in the previous quarter (Q4FY26). Analysts from JM Financial noted that the company's revenue growth was below expectations, with a 1% quarter-on-quarter increase compared to the anticipated 2%. Additionally, acquisitions contributed approximately 1.1% to the quarter's growth, indicating stagnant organic growth. The EBIT margin stood at 21.1%, slightly below the consensus estimate of 21.5%.
Salil Parekh, CEO and Managing Director of Infosys, remarked, “The momentum in AI is swiftly translating into revenue, showcasing how Infosys’ unique enterprise AI value proposition is leading to consistent market share growth. Significant large deal wins, driven by Infosys Topaz, reinforce our clients' trust in our capability to be their strategic partner for AI transformation, delivering real business value.”