| Employee benefits |
30. Employee benefits a)Employee costs includes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended March 31, |
|
|
|
2024 |
|
|
2025 |
|
|
2026 |
|
Salaries and bonus |
|
₹ |
524,484 |
|
|
₹ |
507,629 |
|
|
₹ |
525,825 |
|
Contribution to provident and other funds |
|
|
19,227 |
|
|
|
20,306 |
|
|
|
25,565 |
|
Share-based compensation(1) |
|
|
5,590 |
|
|
|
5,542 |
|
|
|
4,465 |
|
|
|
₹ |
549,301 |
|
|
₹ |
533,477 |
|
|
₹ |
555,855 |
|
(1)Includes ₹ 6, ₹ (9) and ₹ Nil for the years ended March 31, 2024, 2025 and 2026, respectively, towards cash settled ADSs and RSUs. The employee benefit cost is recognized in the following line items in the consolidated statement of income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended March 31, |
|
|
|
2024 |
|
|
2025 |
|
|
2026 |
|
Cost of revenues |
|
₹ |
459,466 |
|
|
₹ |
452,800 |
|
|
₹ |
480,122 |
|
Selling and marketing expenses |
|
|
51,224 |
|
|
|
47,788 |
|
|
|
43,060 |
|
General and administrative expenses |
|
|
38,611 |
|
|
|
32,889 |
|
|
|
32,673 |
|
|
|
₹ |
549,301 |
|
|
₹ |
533,477 |
|
|
₹ |
555,855 |
|
Defined benefit plan actuarial (gains)/losses recognized in other comprehensive income include:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended March 31, |
|
|
|
2024 |
|
|
2025 |
|
|
2026 |
|
Return on plan assets excluding interest income - loss/(gain) |
|
₹ |
(675 |
) |
|
₹ |
(416 |
) |
|
₹ |
384 |
|
Actuarial loss/(gain) arising from financial assumptions |
|
|
373 |
|
|
|
146 |
|
|
|
730 |
|
Actuarial loss/(gain) arising from demographic assumptions |
|
|
98 |
|
|
|
(115 |
) |
|
|
28 |
|
Actuarial loss/(gain) arising from experience adjustments |
|
|
82 |
|
|
|
(12 |
) |
|
|
(1,290 |
) |
Change in the effect of asset ceiling - loss/(gain) |
|
|
(71 |
) |
|
|
74 |
|
|
|
6 |
|
(Gain)/loss on re-measurement of defined benefit plans, net |
|
₹ |
(193 |
) |
|
₹ |
(323 |
) |
|
₹ |
(142 |
) |
Deferred tax (asset)/liability thereon |
|
|
111 |
|
|
|
49 |
|
|
|
10 |
|
(Gain)/loss on re-measurement of defined benefit plans, net of deferred taxes |
|
₹ |
(82 |
) |
|
₹ |
(274 |
) |
|
₹ |
(132 |
) |
b)Gratuity and foreign pension Defined benefit plans include gratuity for employees drawing salary in Indian Rupees, pension and certain benefit plans in foreign jurisdictions. Amount recognized in the consolidated statement of income in respect of defined benefit plans is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended March 31, |
|
|
|
2024 |
|
|
2025 |
|
|
2026 |
|
Current service cost |
|
₹ |
2,993 |
|
|
₹ |
3,205 |
|
|
₹ |
3,795 |
|
Past service cost |
|
|
- |
|
|
|
- |
|
|
|
3,566 |
|
Net interest expense on net defined benefit liability |
|
|
45 |
|
|
|
95 |
|
|
|
268 |
|
Net charge to consolidated statement of income |
|
₹ |
3,038 |
|
|
₹ |
3,300 |
|
|
₹ |
7,629 |
|
|
|
|
|
|
|
|
|
|
|
Actual return on plan assets |
|
₹ |
1,828 |
|
|
₹ |
1,646 |
|
|
₹ |
879 |
|
Change in present value of defined benefit obligation is summarized below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at March 31, |
|
|
|
|
|
2025 |
|
|
2026 |
|
Defined benefit obligation at the beginning of the year |
|
|
|
₹ |
21,516 |
|
|
₹ |
24,188 |
|
Addition through Business combination |
|
|
|
|
- |
|
|
|
1,311 |
|
Current service cost |
|
|
|
|
3,205 |
|
|
|
3,795 |
|
Past service cost |
|
|
|
|
- |
|
|
|
3,566 |
|
Interest expense on obligation |
|
|
|
|
1,308 |
|
|
|
1,506 |
|
Benefits paid |
|
|
|
|
(2,627 |
) |
|
|
(2,631 |
) |
Contributions from plan participants and due to transfer |
|
|
|
|
558 |
|
|
|
87 |
|
Remeasurement loss/(gain) |
|
|
|
|
|
|
|
|
Actuarial loss/(gain) arising from financial assumptions |
|
|
|
|
146 |
|
|
|
730 |
|
Actuarial loss/(gain) arising from demographic assumptions |
|
|
|
|
(115 |
) |
|
|
28 |
|
Actuarial loss/(gain) arising from experience adjustments |
|
|
|
|
(12 |
) |
|
|
(1,290 |
) |
Translation adjustment |
|
|
|
|
209 |
|
|
|
1,291 |
|
Defined benefit obligation at the end of the year |
|
|
|
₹ |
24,188 |
|
|
₹ |
32,581 |
|
Change in plan assets is summarized below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at March 31, |
|
|
|
|
|
2025 |
|
|
2026 |
|
Fair value of plan assets at the beginning of the year |
|
|
|
₹ |
20,022 |
|
|
₹ |
22,231 |
|
Addition through Business combination |
|
|
|
|
- |
|
|
|
211 |
|
Expected return on plan assets |
|
|
|
|
1,230 |
|
|
|
1,263 |
|
Employer contributions |
|
|
|
|
141 |
|
|
|
5,417 |
|
Benefits paid |
|
|
|
|
(313 |
) |
|
|
(188 |
) |
Contributions from plan participants and due to transfer |
|
|
|
|
558 |
|
|
|
87 |
|
Remeasurement (loss)/gain |
|
|
|
|
|
|
|
|
Return on plan assets excluding interest income - (loss)/gain |
|
|
|
|
416 |
|
|
|
(384 |
) |
Translation adjustment |
|
|
|
|
177 |
|
|
|
1,200 |
|
Fair value of plan assets at the end of the year |
|
|
|
₹ |
22,231 |
|
|
₹ |
29,837 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at March 31, |
|
|
|
|
|
2025 |
|
|
2026 |
|
Defined benefit obligation |
|
|
|
₹ |
24,188 |
|
|
₹ |
32,581 |
|
Fair value of plan assets |
|
|
|
|
22,231 |
|
|
|
29,837 |
|
Present value of unfunded obligation |
|
|
|
₹ |
(1,957 |
) |
|
₹ |
(2,744 |
) |
Change in the effect of asset ceiling |
|
|
|
|
(545 |
) |
|
|
(678 |
) |
Recognized liability |
|
|
|
₹ |
(2,502 |
) |
|
₹ |
(3,422 |
) |
Change in effect of asset ceiling is summarized below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at March 31, |
|
|
|
|
|
2025 |
|
|
2026 |
|
Effect of asset ceiling at the beginning of the year |
|
|
|
₹ |
442 |
|
|
₹ |
545 |
|
Interest expense on effect of asset ceiling |
|
|
|
|
17 |
|
|
|
25 |
|
Changes in the effect of limiting the surplus to the asset ceiling |
|
|
|
|
74 |
|
|
|
6 |
|
Translation adjustment |
|
|
|
|
12 |
|
|
|
102 |
|
Effect of asset ceiling at the end of the year |
|
|
|
₹ |
545 |
|
|
₹ |
678 |
|
As at March 31, 2025 and 2026, plan assets were primarily invested in insurer managed funds. The Company has established an income tax approved irrevocable trust fund to which it regularly contributes to finance the liabilities of the gratuity plan. The fund’s investments are managed by certain insurance companies as per the selection made by the trustees among the fund plan available. The principal assumptions used for the purpose of actuarial valuation of these defined benefit plans are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at March 31, |
|
|
|
|
|
2025 |
|
|
2026 |
|
Discount rate |
|
|
|
|
5.75 |
% |
|
|
5.70 |
% |
Expected return on plan assets |
|
|
|
|
5.75 |
% |
|
|
5.70 |
% |
Expected rate of salary increase |
|
|
|
|
6.40 |
% |
|
|
6.44 |
% |
Weighted average duration of defined benefit obligations |
|
|
|
7.03 years |
|
|
6.53 years |
|
The discount rate is primarily based on the prevailing market yields of government securities for the estimated term of the obligations. The estimates of future salary increase considered takes into account the inflation, seniority, promotion and other relevant factors. Attrition rate considered is the management’s estimate, based on previous years’ employee turnover of the Company. The expected return on plan assets is based on expectation of the average long-term rate of return expected on investments of the fund during the estimated term of the obligations. Expected future contribution and estimated future benefit payments from the fund are as follows:
|
|
|
|
|
|
|
|
|
For the year ended March 31, 2025 |
|
|
|
|
|
|
|
Expected contribution to the fund during the year ending March 31, 2026 |
|
|
|
|
|
₹ |
3,545 |
|
Estimated benefit payments from the fund for the year ending March 31: |
|
|
|
|
|
|
|
2026 |
|
|
|
|
|
₹ |
3,565 |
|
2027 |
|
|
|
|
|
|
3,218 |
|
2028 |
|
|
|
|
|
|
2,953 |
|
2029 |
|
|
|
|
|
|
2,736 |
|
2030 |
|
|
|
|
|
|
2,412 |
|
Thereafter |
|
|
|
|
|
|
17,692 |
|
Total |
|
|
|
|
|
₹ |
32,576 |
|
|
|
|
|
|
|
|
|
For the year ended March 31, 2026 |
|
|
|
|
|
|
|
Expected contribution to the fund during the year ending March 31, 2027 |
|
|
|
|
|
₹ |
3,515 |
|
Estimated benefit payments from the fund for the year ending March 31: |
|
|
|
|
|
|
|
2027 |
|
|
|
|
|
₹ |
5,493 |
|
2028 |
|
|
|
|
|
|
4,518 |
|
2029 |
|
|
|
|
|
|
4,134 |
|
2030 |
|
|
|
|
|
|
3,748 |
|
2031 |
|
|
|
|
|
|
3,493 |
|
Thereafter |
|
|
|
|
|
|
21,690 |
|
Total |
|
|
|
|
|
₹ |
43,076 |
|
The expected benefits are based on the same assumptions used to measure the Company’s benefit obligations as at March 31, 2026. Sensitivity for significant actuarial assumptions is computed to show the movement in defined benefit obligation by 1 percentage. As of March 31, 2026, every 1 percentage point increase/(decrease) in discount rate will result in (decrease)/increase of defined benefit obligation by approximately ₹ (1,914) and ₹ 2,228, respectively (March 31, 2025: ₹ (1,565) and ₹ 1,807, respectively). As of March 31, 2026, every 1 percentage point increase/(decrease) in expected rate of salary will result in increase/(decrease) of defined benefit obligation by approximately ₹ 1,620 and ₹ (1,512), respectively (March 31, 2025: ₹ 1,189 and ₹ (1,129), respectively). The sensitivity analysis to significant actuarial assumptions may not be representative of the actual change in the defined benefit obligations as the change in assumptions may not occur in isolation since some of the assumptions may be correlated. Furthermore, in presenting the sensitivity analysis, the present value of the defined benefit obligations has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the consolidated statement of financial position. The details of fund and plan assets are given below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at March 31, |
|
|
|
|
|
2025 |
|
|
2026 |
|
Fair value of plan assets |
|
|
|
₹ |
121,067 |
|
|
₹ |
133,417 |
|
Present value of defined benefit obligation |
|
|
|
|
(121,067 |
) |
|
|
(133,417 |
) |
Net shortfall |
|
|
|
₹ |
- |
|
|
₹ |
- |
|
The total expense for the years ended March 31, 2024, 2025 and 2026 is ₹ 6,265, ₹ 6,517 and ₹ 7,058, respectively. The plan assets have been invested as per the regulations of Employees' Provident Fund Organization (EPFO). The principal assumptions used in determining the present value obligation of interest guarantee under the deterministic approach are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at March 31, |
|
|
|
|
|
2025 |
|
|
2026 |
|
Discount rate for the term of the obligation |
|
|
|
|
6.55 |
% |
|
|
6.50 |
% |
Weighted average remaining tenure of investment portfolio |
|
|
|
6.71 years |
|
|
13.81 years |
|
Guaranteed rate of return |
|
|
|
|
8.25 |
% |
|
|
8.25 |
% |
d)Defined contribution plans: The total expense for the years ended March 31, 2024, 2025 and 2026 was ₹ 9,969, ₹ 10,584 and ₹ 11,146, respectively.
|