Infosys delivered a steady performance for the quarter ended in March as its revenue rose to ₹46,402 crore, up 13.4 per cent year-on-year (y-o-y) (4.1 per cent cc) and 2 per cent quarter-on-quarter (q-o-q) (-1.3 per cent cc). Net profit climbed to ₹8,501 crore, growing 20.9 per cent y-o-y and 27.8 per cent sequentially.
The company has guided for FY27 revenue growth of 1.5 per cent-3.5 per cent. Operating margin stood at 21 per cent during the quarter.
In Q4, large deal TCV stood at $3.2 billion, down from $4.8 billion in the previous quarter.
Addressing the direct impact of the West Asia conflict on the company’s performance, Infosys CEO and MD Salil Parekh said, “we are keeping an eye on how everything plays out. Considering the current situation, things may stabilise. The mindset now is that, underlying many things in some of those Western economies, is quite good. They are resilient, according to people. That always has some correlation to tech being supported. If that happens, we will see some more of the tech spend there.”
Growth was led by the life sciences vertical, followed by communications and energy, utilities, resources and services, while hi-tech declined y-o-y. Geographically, Europe and North America each grew 4.1 per cent y-o-y in constant currency, while India remained flat.
Meanwhile, CFO Jayesh Sanghrajka said that for the upcoming fiscal year, the company has factored in the impact of its recent deals.
“The Stratus acquisition has been closed and is already baked into the guidance, contributing around 25 bps. The Optimum acquisition is yet to close as we await regulatory approvals, and the JV with our Australian client is also pending approvals,” he said.
He added that full-year margins stood at around 21 per cent, with quarterly margins at similar levels.
“From a margin walk perspective, there was a 50 bps impact from acquisition-related amortisation that we absorbed. In Q3, we had a one-off benefit of 30 bps, which now acts as a headwind on comparison. Additionally, a 20 bps impact came from compensation-related factors. These were partly offset by a 40 bps currency benefit and about 30 bps contribution from Maximus performance.”
For the full year, Infosys reported revenue of ₹1,78,650 crore, registering growth of 9.6 per cent y-o-y (3.1 per cent cc). Net profit rose 10.2 per cent y-o-y to ₹29,440 crore.
Large deal TCV for FY26 stood at $14.9 billion, with net new deals contributing 55 per cent, indicating steady deal momentum despite quarterly fluctuations.
Attrition for the quarter was 12.6 per cent, while headcount stood at 328,594. The company hired over 20,000 freshers in FY26 and expects to onboard at least 20,000 more in FY27.
Sidhant Rastogi, President, Zinnov, explained, “The 1.5–3.5% FY27 guidance sits below the 3.1% Infosys just delivered and is an unusual stance given the deal book strength, and a tacit acknowledgement that EUR programme ramp-down, tariff uncertainty in manufacturing, and the West Asia exposure are real near-term drags.”
He added that three triggers will define the next few quarters, with the first one being conversion velocity. A $15B large deal book should lift organic growth beyond 3.5% if ramp-ups proceed on schedule. Any slippage will show up in Q1–Q2. Second, vertical breadth of the $8 billion-plus of net-new in areas of tailwind such as BFSI versus Manufacturing that faces tariff risks, will guide whether the guidance will be met. Third, a first formal AI revenue or AI-embedded bookings percentage disclosure would re-rate the narrative and close the disclosure gap with the peer group.
Biswajit Maity, Sr Principal Analyst, Gartner, said while Infosys demonstrated resilient performance in FY26, maintaining stable margins, Q4 revenue dipped slightly quarter-over-quarter, mainly due to delays in deal conversions and cautious client spending.
“Within the broader IT sector, there is an increasing emphasis on AI-first and outcome-driven strategies, which are enhancing productivity and delivery efficiency. This transition, however, is impacting near-term revenue recognition, as clients shift toward outcome-based payments rather than traditional effort-based models. Consequently, this has led to some short-term softness in revenue, even as underlying demand remains steady,” he explained, adding that the overall demand environment remains healthy, bolstered by wins in large, long-term transformation engagements.
The company’s shares fell to ₹1,242.60, down by 2.04 per cent today. Results were announced post-market closure.
Meanwhile, Infosys ADR listed on NYSE plunged -5.49 per cent to $12.74 on Thursday.
(With inputs from BL intern Adithya Lalgudi)
Published on April 23, 2026