New Delhi, Apr 23 (PTI) IT major Infosys on Thursday reported a 20.8 per cent rise in consolidated net profit to Rs 8,501 crore in the January-March quarter and guided for 1.5 to 3.5 per cent revenue growth for FY27, pinning its optimism on momentum in financial services, utilities, and AI services.
The top management spoke of the calendar year starting on a strong note, but pointed out that there was a “change in economic environment” amid the West Asia conflict, though things appear to be stabilising now.
The company’s revenue from operations increased 13.4 per cent to Rs 46,402 crore in Q4 FY26 compared to Rs 40,925 crore in the year-ago period.
In the full 2025-26 fiscal year, Infosys’ net profit climbed 10.20 per cent to Rs 29,440 crore from Rs 26,713 crore in 2024-25.
Its revenue from operations in FY26 rose 9.6 per cent to Rs 178,650 crore.
For FY27, Infosys has given a revenue growth forecast of 1.5 to 3.5 per cent in constant currency terms.
“We had strong growth in financial services, in communications, and in manufacturing from the industry side and in Europe from the geography side. As we look ahead to the financial year 2027, we see large opportunities in AI services. We expect acceleration of growth in financial services and in the energy, utility, resources and services vertical.
“With the Iran war, there was a change in the economic environment…(but) there seem to be paths towards things stabilising. What we understand, (through) talking to people in the market and the clients, is that the underlying resilience of some of the economies where we have big markets is pretty good. The economies are doing well. There are good investments. AI is growing well,” Infosys CEO and MD Salil Parekh said.
Infosys’ ADR, however, traded 5 per cent lower in the US pre-market session.
Infosys peers have pointed out a volatile macroeconomic environment, rising uncertainties, geopolitical risks, and AI fears.
HCLTech management flagged a highly volatile demand environment shadowed by tariffs and softened discretionary spending, while Wipro described a challenging macro environment as the new normal.
The total employee headcount stood at 328,594 at the end of Q4 FY26, marking a sequential drop of 8,440 staff from 3,37,034 in Q3 FY26, but an increase (of 5,016 staff) compared to 3,23,578 in Q4 FY25.
Infosys Chief Financial Officer Jayesh Sanghrajka attributed the quarterly fluctuations to a softer volume environment and the broader demand-supply equation playing out in the market.
He noted that Infosys successfully onboarded over 20,000 freshers in FY26. Looking ahead, the company plans to maintain this momentum, setting a target to hire 20,000 freshers in FY27.
“We announced (a target of) 20,000 for FY26, and we have hired more than 20,000 freshers from the market. This year, we are expecting at least 20,000 freshers to be hired,” Sanghrajka said.
The company secured large deals with a total contract value (TCV) of USD 3.2 billion in Q4. For the full year FY26, large deal TCV hit USD 14.9 billion, of which 55 per cent was net new.
The core markets of North America and Europe registered a year-on-year growth of 4.1 per cent in constant currency (CC) in Q4 FY26. Rest of the World (RoW) markets grew by 5 per cent, while the India market remained flat.
Life sciences led the Q4 sectoral growth at 11.6 per cent, followed by communication at 9 per cent and energy, utilities, resources and services at 6.7 per cent.
Financial Services posted a moderate growth of 2.9 per cent, manufacturing grew 1.3 per cent, and retail was nearly flat at 0.5 per cent.
The hi-tech vertical was the only segment to report a decline, shrinking by 1.2 per cent.
Amid some media reports that the Board was set to review the succession plan and that Parekh may get a shorter extension, not another full term, the top management remained tight-lipped to a question on CEO tenure. Parekh’s current five-year term is until March 2027.
Infosys acknowledged that AI is beginning to cannibalise its traditional IT services and business process management (BPM) models.
However, Parekh said that this AI-led compression or deflation in legacy business is being offset by a surge in new AI-driven services.
“The compression is coming on some of the services, and the growth is coming on other services. The compression is typically in the area of AI foundation models, and some of the tools are very efficient on that…you can see that in some tech services…some of the BPM…But it’s combined with the growth that we are also seeing.
“As we look ahead to the financial year 2027, we see large opportunities in AI services…We see a large addressable market for AI services across AI strategy, engineering, data, process, legacy modernisation, physical AI and trust,” he said.
The company’s board recommended a final dividend of Rs 25 per equity share for FY26. Including interim dividends and the recently concluded share buyback, Infosys returned over Rs 37,500 crore to shareholders in FY26.
Shares of Infosys settled 2.04 per cent lower at Rs 1,242 apiece on the BSE on Thursday. The financial numbers were announced post-market hours. PTI ANK MBI ANK BAL BAL
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