The Salil Parekh-led Infosys on Wednesday reported 8.7 per cent year-on-year (YoY) rise in net profit at Rs 6,921 crore for the June quarter compared with Rs 6,368 crore in the same quarter last year.
This is against analyst projections of 4-7 per cent growth in the bottom line.
Revenue for the quarter rose 7.5 per cent YoY to Rs 42,279 crore from Rs 39,315 crore in the year-ago quarter. Operating margin came in at 20.8 per cen against 21.1 per cent YoY. The sales growth and margin were more or less in line with analyst estimates.
The IT major guided for FY26 revenue growth of 1-3 per cent in constant currency terms. It anticipated an operating margin of 20-22 per cent for the fiscal year. This is against a revenue guidance of nil to 3 per cent before. The raising of FY26 revenue guidance was in line with the Street estimates.
In dollar terms, Infosys delivered $4,941 million in Q1 revenue, year on year growth of 3.8 per cent and sequential growth of 2.6 per cent in constant currency (CC) terms. Operating margin came in at 20.8 per cent. Infosys’ free cash flow generation was strong at $884 million, 109.3 epr cent of net profit.
The IT major said its total contract value (TCV) of large deal wins was $3.8 billion, with 55 per cent net new. Analysts were expecting deal wins to the tune of $3 billion.
Infosys said its total employees stood at 3,23,788 in Q1 against 3,23,578 in Q4 and 3,15,332 in the same quarter last year. Attrition for the quarter came in at 14.4 per cent against 14.1 per cent in the March quarter and 12.7 per cent in the year-ago quarter.
Return on equity (ROE) improved 140 bps to 30.4 per cent, Infosys informed stock exchanges.
What Salil Parekh says
“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”, said Salil Parekh, CEO and MD. “Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships”, he added.
Earlier in the day, Infosys shares settled 0.27 per cent higher at Rs 1,574.40 on BSE. Infosys results came post market hours.