Infosys Q2 FY26: Net Profit Rises 13% YoY to ₹7,364 Crore; Revenue at ₹44,490 Crore, Interim Dividend of ₹23 Declared

Bengaluru, October 16, 2025 – Infosys Ltd (NSE: INFY, BSE: 500209) posted stellar performance in the July-September 2025 quarter with double-digit profit growth and stable operating margins. Infosys also announced an ₹18,000 crore share buyback and an interim dividend of ₹23 per share for FY26.

Quarterly Performance Overview

• Infosys announced Q2 FY26 revenue at ₹44,490 crore, up 8.6 percent year-on-year (YoY) and 2.2 percent sequential in constant currency.
• Net profit increased by 13.2 percent YoY to ₹7,364 crore, led by high margin and healthy generation of free cash flow.
• The operating margin was 21.0 percent, which shows operational discipline despite continued client caution. Basic EPS rose 13.1 percent YoY to ₹17.76.

Consolidated Statements – Q2 FY26 and H1 FY26 ( ₹ crore)

For Q2 FY26, Infosys clocked revenue from operations at ₹44,490 crore, up 8.6% year-on-year from ₹40,986 crore in Q2 FY25, and cumulative half-year revenue at ₹86,769 crore from ₹80,300 crore in H1 FY25. Operating profit (EBIT) increased to ₹9,353 crore from ₹8,649 crore earlier, while net profit increased 13.2% year-on-year at ₹7,364 crore and added to half-year net profit at ₹14,285 crore from ₹12,874 crore in H1 FY25.

Operating margins were flat at 21.0% in the quarter and 20.9% in H1, and basic earnings per share (EPS) increased at ₹17.76 in Q2 and ₹34.47 in H1. Free cash flow generation was healthy at ₹9,677 crore in the quarter, up 38% from ₹7,010 crore in Q2 FY25 and at ₹17,210 crore in H1 FY26, with good cash conversion and operational efficiency. The cash flow conversion was steady at 131.2 percent of net profit in the quarter.

Key Metrics and Outlook

• Large-deal TCV: $3.1 billion, with 67 percent net new
• Free cash flow: $1.1 billion in Q2
• Headcount: Increased by 8,203 employees
• FY26 Guidance: Revenue growth of 2–3 percent in constant currency and operating margin between 20–22 percent

Management Commentary

Salil Parekh, CEO and MD, further said, “We have now reported two consecutive quarters of strong growth, validating our differentiated market positioning and client applicability. Robust deal wins, with net new at 67 percent in Q2, reflect our comprehensive client understanding in ways to leverage value from AI in this environment.”

Jayesh Sanghrajka, cfo, added, “We delivered a strong all-around performance in Q2 with high growth, healthy margins, very high cash generation, and year-on-year 13.1 percent EPS growth. In line with our Capital Allocation Policy, we announced a ₹18,000 crore share buyback and an interim dividend of ₹23 per share, up 9.5 percent from the previous fiscal.”

Capital Allocation and Dividend Details

On the capital allocation front, Infosys declared an interim dividend of ₹5 face value per share, equivalent to ₹23, and approved a share buyback plan worth ₹18,000 crore through the open market, which reflects its priority towards shareholder return.

REF: https://nsearchives.nseindia.com/corporate/Infosys_16102025160458_BM_Outcome_Oct162025.pdf

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