MUMBAI— Infosys reported a slight dip in quarterly profit for the April–June period, posting a 1.61% decline in net profit to ₹6,924 crore, down from ₹7,038 crore in the previous quarter (Q4 FY25). However, on a year-on-year basis, the IT services major recorded an 8.7% increase in net profit, according to a stock exchange filing on Wednesday.
The company’s revenue rose 7.5% year-on-year to ₹42,279 crore. Sequentially, revenue grew 3.3% from ₹40,925 crore in Q4.
Total expenses climbed modestly to ₹33,581 crore in Q1, up from ₹32,452 crore in the prior quarter. Gross profit for the quarter stood at ₹13,055 crore, compared to ₹12,138 crore in the same period last year.
Infosys revised its full-year FY26 revenue growth guidance to 1–3% in constant currency terms, raising the lower end of the forecast range.
CEO and Managing Director Salil Parekh said the results highlight the company’s strengths in enterprise AI, client consolidation, and the commitment of its 300,000-plus employees. He also noted that Infosys secured $3.8 billion in large deals during the quarter, with 55% coming from new clients, reinforcing its global IT leadership.
Operating margins for the quarter came in at 20.8%, down slightly by 0.3% year-on-year and 0.2% quarter-on-quarter. Infosys maintained its guidance of a 20–22% margin range for FY26.
Among business segments, financial services posted a 5.6% YoY growth in constant currency, while manufacturing saw a strong 12.2% rise. The retail and hi-tech segments showed modest improvements. However, the life sciences vertical contracted by 7.9%, and other segments declined 15.3%.
Free cash flow remained strong at $884 million, with cash flow conversion exceeding 100% for the fifth straight quarter. CFO Jayesh Sanghrajka noted that currency fluctuations were effectively managed through proactive hedging.
On the talent front, Infosys reported a slight uptick in voluntary attrition, which rose to 14.4% from 14.1% in the previous quarter, and up from 12.7% in Q1 FY25. The company ended the quarter with 323,788 employees, adding 210 net new employees during the period and 8,456 over the past year.
Infosys shares closed 0.8% lower at ₹1,558.90 on the NSE Wednesday, ahead of the earnings release. (Source: IANS)
