Bengaluru-headquartered IT services giant Infosys fell short of market expectations by lowering its FY26 revenue growth guidance to 0–3 per cent in constant currency (cc) terms, down from the 4.5–5 per cent forecast for FY25 in the previous quarter. The company posted a net profit of ₹7,033 crore for the March quarter, reflecting a 3.3 per cent sequential increase, but an 11.7 per cent decline year-on-year from ₹7,969 crore in Q4FY24.

During the quarter, revenue from operations stood at ₹40,925 crore, with a 2 per cent QoQ degrowth from last quarter’s ₹41,764 crore. However, it grew by 7.9 per cent on an annual basis. For the full year, Infosys recorded a revenue of $19.2 billion, up 3.9 per cent in reported terms from FY24’s $18.56 billion. Full year PAT stood at $3.15 billion , a decline of 0.3 per cent in reported terms.

“At the bottom of the guidance, we assumed heightened impact from the micro-environment and factored in increasing uncertainty. At the top end, we have assumed a steady-to-marginally improving environment. It’s difficult to split out how much of that is because of the US reciprocal tariffs or GCCs,” said Infosys CFO Jayesh Sanghrajka.

Market share

While the US remains Infosys’ largest market, accounting for over 57 per cent of its revenue, it recorded a year-on-year decline of 0.4 per cent in constant currency terms this quarter. In contrast, Europe and India delivered strong growth, rising 15 per cent and 43.7 per cent,. respectively in constant currency.

Salil Parekh, CEO, and MD, said, “We announced an acquisition in the US in energy and consulting, and remain, in a longer-term view, positive on technology changes, and the markets we are in while we may see some uneven activity in the short or medium term. But we are also looking to expand in other geographies, in addition to what we’re doing in the US. For example, in Japan, Mitsubishi’s investment in our joint venture, or the acquisition in Australia. While we did well in Europe this year, the automotive sector continues seeing some slowness, which is part of the current outlook.”

The company’s large deals total contract value (TCV) stood at $2.6 billion, marginally higher than Q3’s $2.5 billion. Operating margins stood at 21 per cent.

Headcount up a tad

Infosys’ total headcount was recorded at 323,578, a small increase compared to 317,240. At the beginning of the financial year. Voluntary attrition during the quarter rose to 14.1 per cent from 13.7 per cent in Q3.

Biswajit Maity, Sr Principal Analyst at Gartner, commented, “Infosys reported 4.2 per cent YoY growth in Q4 (CC), reflecting muted growth amid global economic challenges. Like its peers, the company faced headwinds from reduced client spending and geopolitical uncertainties. Despite this, the outlook remains positive. Over the past year, it has secured several large, multi-year deals, demonstrating a solid track record in core service delivery and expanding into digital offerings.”

He continued, that although over 60 per cent of revenue comes from North America — exposing it to regional risks — a growing presence in the Nordics, Middle East and South-East Asia is helping diversify its market footprint.

“While clients are generally satisfied with Infosys’ operational delivery, some have highlighted areas for improvement, particularly in product roadmap planning, change management, and continuous improvement. To sustain its growth momentum, Infosys must address these gaps and enhance its responsiveness to evolving client expectations.”

On Thursday, the company’s shares were up 0.51 per cent and closed at ₹1,420.20 per share on the BSE. Results were announced after the markets closed.

(With inputs from businessline intern Nethra Sailesh)

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Published on April 17, 2025