Infosys' net profit up by 8.6% in June quarter

Bengaluru, July 23, 2025 – Infosys Limited (NSE: INFY, BSE: 500209, NYSE: INFY) reported consolidated net profit of ₹6,924 crore for the first quarter of FY26, marking an 8.6% year-on-year increase, even as revenue growth moderated. Its revenue in the quarter increased y-o-y by 8% to Rs 42,279 crore.  The company maintained an operating profit margin of 20.8% and reiterated its FY26 guidance in a volatile macro environment.

This quarter’s growth is driven by additional billing days and strong performance in the financial services vertical. While discretionary tech spending remained flat, large deals and stable demand in core markets are expected to support growth, the company said.

Despite cost pressures from wage increases and onboarding several large deals, Infosys is likely to maintain steady margins due to internal efficiencies, the company said.

Infosys Limited Share Price Performance

The share price of Infosys Limited was ₹1574.50 on July 25, 2025, closing with an increase of 0.23% from the previous close of ₹1,570.90. The share opened at ₹1,576.30 and traded between a high of ₹1,591.90 and a low of ₹1,550.00 for the entire day.

Q1FY26 Financial Snapshot (Consolidated)

In Q1FY26, the company reported consolidated revenue of ₹42,279 crore, an increase of 3.3% on a QoQ basis and 7.5% YoY. However, net profit decreased marginally by 1.6% on a QoQ basis to ₹6,924 crore but was up 8.6% YoY. The operating margin was down slightly to 20.8%. Free cash flow was ₹7,533 crore, down 2.6% QoQ and 17.7% YoY, but an impressive 108.8% of net profit, a fifth consecutive quarter of cash conversion of over 100%.

Segment-wise Performance

• Financial Services, Infosys’ largest segment, grew 6.3% YoY in reported terms (5.6% in CC), contributing 27.9% to revenue.
• Manufacturing led the growth charts, up 14.8% YoY (12.2% CC).
• Life Sciences declined 6.6% YoY in reported terms (7.9% in CC).
• Regionally, Europe was the best performer, growing 16.2% YoY (12.3% in CC), while North America remained flat.

Large Deal Wins & Guidance

• The total contract value (TCV) stood at $3.8 billion, of which 55% represented net new business.
• Infosys revised revenue growth guidance for FY26 to 1%-3% in constant currency while maintaining operating margin guidance at 20%-22%.

Standalone Financial Highlights

Infosys also posted a standalone net profit of ₹6,114 crore for Q1FY26, up 6.0% YoY. Standalone revenue stood at ₹35,275 crore, growing 6.0% YoY.

Key Management Commentary

Salil Parekh, CEO & MD, said:

“Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees. Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships.”

Jayesh Sanghrajka, CFO, added:

“Q1 performance reflects our unwavering focus on multiple fronts-resilient margins, strong deal pipeline, and effective cash conversion. The impact of currency volatility was effectively managed through proactive hedging strategies.”

Strategic Developments

Infosys completed two acquisitions in Q1FY26:

• MRE Consulting Ltd. is a Texas-based energy and business consulting firm.
• The Missing Link Group is an Australian cybersecurity service provider.

Both are expected to bolster Infosys’ capabilities in trading risk management and enterprise cybersecurity.

Recognition & Awards

Infosys continued to be ranked among the Top 100 most valuable global brands by Kantar BrandZ. They was recognized across several categories in the 2025 Asia Executive Team Survey by Extel, including Best CEO, Best IR Program, and Best ESG Program.

About the Company

Infosys Limited is a global leader in next-generation digital services and consulting. With over 320,000 employees, it provides services to clients across 59 countries. The company is listed on BSE, NSE, and NYSE under the ticker INFY.

Listing Information: BSE: 500209 | NSE: INFY | NYSE: INFY

ISIN: INE009A01021

Face Value: ₹5 per share

Dividend History: Final dividend for FY25 declared at ₹22/share, paid on June 30, 2025.

REF:https://nsearchives.nseindia.com/corporate/Infosys_23072025153626_Outcome23072025.pdf

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