New Delhi, Jul 23 (PTI) IT services company Infosys on Thursday reported a 12.2 per cent year-on-year rise in consolidated net profit to Rs 7,769 crore for the June quarter, and tempered the upper end of its full-year revenue forecast to between 1.5 per cent and 3 per cent amid continued macroeconomic uncertainty.
India’s second largest IT services company saw revenue for Q1FY27 rise 14 per cent to Rs 48,211 crore.
Infosys also named company veteran Ashiss Kumar Dash as CEO-designate, with the leadership transition scheduled for April 1, 2027, after incumbent Salil Parekh completes his second term, marking the end of a nine-year tenure. Notably for Infosys, Parekh is its longest-serving CEO who is not one of the founders.
The company delivered USD 5,082 million in Q1 revenues, year on year growth of 2.4 per cent and sequential growth of 1 per cent in constant currency (neutralising currency impact).
“We had a one-time revenue impact of a client decision during the quarter,” Infosys CEO and MD Salil Parekh said.
AI services contributed 8.2 per cent of Infosys’ Q1 revenue, with the company highlighting strong momentum and long-term client relevance driven by AI-led services.
Infosys said over 80,000 employees are using AI coding tools for client work and seeing strong traction across its six AI growth areas. The company is building AI capabilities, including process agents, data modernisation, and coding solutions, while planning to create a team of 6,000 frontier engineers over the next few years.
Infosys also trimmed its revenue growth outlook for the full year FY27, to between 1.5 per cent and 3 per cent. The Bengaluru-headquartered company had previously said it expects revenue to grow between 1.5 per cent and 3.5 per cent this fiscal.
“Overall, we continue to see the macro environment remaining uncertain. With our Q1 results and a view for the rest of the financial year, we are changing our revenue growth guidance to 1.5 per cent and 3 per cent year-on-year growth in constant currency terms,” Parekh said.
The operating margin guidance remains intact at between 20 per cent and 22 per cent.
“We had a sense that the macro environment was settling down, so we had a guidance where the upper end looked at…maybe…(that)things would settle down in the second half. Things are a little bit more uneven, but at the same time, it could easily stabilise overtime,” Parekh said.
Softer-than-expected volumes and pricing seen in Q1 will also have a cascading effect on the rest of the year in terms of guidance, the company said.
AI services are seeing strong double-digit growth, with Infosys reporting sustained momentum across its six identified AI growth areas, including processes, agents, data, and engineering, driven by increasing client adoption.
Explaining the company’s position on guidance, he said: “There are factors related to what is going on in the macro environment…There are factors related to volumes in the quarter, but we look at the large deal number USD 3.6 billion at 61 per cent net new…we see a lot of support in that,” Parekh said at Infosys’ earning conference. The deal pipeline is looking good, he asserted.
Infosys highlighted data sovereignty as a key AI differentiator, with its AI fabric approach allowing clients to retain control of their data, regardless of the AI models they use. Infosys said its large-deal pipeline remains strong and it expects to benefit from market consolidation, which is driving more opportunities.
The company further said its GCC business is seeing strong traction, with healthy revenue growth and expanding client engagements. While GCC relationships go through regular lifecycle changes, the overall work with and within GCCs continues to grow well, the company emphasised.
Infosys said compensation hikes will be implemented in two phases – with most employees receiving increments in October, while senior employees will get theirs in January.
Parekh said Infosys has decided not to pursue data centre investments at this stage after reviewing the opportunity and its balance sheet strategy with management and the board.
“On the data centre piece, we’ve internally reviewed what we want to do in terms of our balance sheet…We’ve had a discussion with the management team and also with our board, and we have decided to not do anything in that space at this stage,” he said.
Infosys is seeing above-average growth in financial services and energy and utilities, while retail and communication continue to face constraints. Despite headwind, the manufacturing vertical has grown very well, the company said.
Infosys’ workforce fell by 532 employees in Q1 FY27, with total headcount tally at 328,062 in the June quarter.
The company said it hired over 4,000 college graduates in Q1FY27; overall it plans to recruit 20,000 college graduates this fiscal – same as the previous year. Attrition for the quarter rose to 13 per cent as against 12.6 per cent in the previous sequential quarter. PTI MBI MBI MR
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