Bengaluru: India’s second largest IT firm Infosys reported a 9% YoY rise in net profit to Rs.6,921 crore from Rs.6,368 crore last year. The company has attributed this to the $3.8 billion deals it signed in the quarter, where about 55% were with new clients.
#InfosysQ1FY26 pic.twitter.com/xWYXy0grjG
— Infosys (@Infosys) July 23, 2025
The company’s revenue rose 7.5% from Rs.39,315 in Q1FY25 to Rs.42,279 this time. The company expects its revenue to grow up to 3% this financial year with its operating margins expected to remain at 20-22%.
Following the news, the company’s American Depository Receipt (ADR) shares rose 3% on the New York Stock Exchange (NYSE) to $18.83 on Wednesday, July 23.
“Q1 performance is a clear reflection of our unwavering focus on multiple fronts, resulting in strong growth at 2.6% QoQ, resilient margins at 20.8% and EPS increase of 8.6% YoY. We continue to leverage Project Maximus to make investments in strategic priorities to drive profitable growth and enhance shareholder value”, Jayesh Sanghrajka, CFO at Infosys, said.
“Cash flow conversion was well above 100% for the fifth consecutive quarter. The impact of currency volatility was effectively managed through our proactive hedging strategy”, he added.
“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”, Salil Parekh, Infosys’ CEO and MD said.
“Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships”, he added.
Most brokerage firms have reiterated their ‘buy’ rating on Infosys as the company has demonstrated strong revenue growth through AI-led offerings despite macroeconomic challenges.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
