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Infosys Q3 Profit Dips 2.2% Despite Strong 9% Revenue Growth

Infosys has reported its financial results for the October-December quarter. While the company's profit took a hit, its revenue showed healthy growth. The IT major also upgraded its full-year revenue outlook. CEO Salil Parekh highlighted the role of their AI platform, Infosys Topaz, in driving market share.

Key Points: Infosys Q3 Profit Falls 2.2% as Revenue Climbs 9%

  • Consolidated net profit fell 2.2% YoY to Rs 6,666 crore in Q3 FY26
  • Revenue from operations rose 9% YoY to Rs 45,479 crore during the quarter
  • Company faced a one-time impact of Rs 1,289 crore due to new Labour Code norms
  • Infosys raised its FY26 revenue growth guidance to 3-3.5% in constant currency terms
2 min read

Infosys clocks 2.2 pc loss in Q3, revenue rises 9 pc

Infosys reports a 2.2% YoY drop in Q3 profit to Rs 6,666 crore, impacted by new Labour Code norms, while revenue grows 9% to Rs 45,479 crore.

Infosys clocks 2.2 pc loss in Q3, revenue rises 9 pc
"Infosys delivered a strong Q3 performance demonstrating how our differentiated value propositions in enterprise AI, through Infosys Topaz, are consistently driving higher market share. - Salil Parekh, CEO & MD of Infosys"

Mumbai, Jan 14

IT major Infosys on Wednesday reported a decline in its consolidated net profit for the October–December quarter (Q3 FY26), mainly due to the impact of the Indian government's recent Labour Code norms.

Infosys said its consolidated net profit fell 2.2 per cent year-on-year (YoY) to Rs 6,666 crore in the third quarter, compared with Rs 6,822 crore in the same period last financial year (Q3 FY25).

On a quarter-on-quarter (QoQ) basis, profit dropped sharply by nearly 9.6 per cent from Rs 7,375 crore reported in the previous quarter of the current financial year (Q2 FY26), according to its stock exchange filing.

According to the company's consolidated financial statements, Infosys faced a one-time impact of Rs 1,289 crore due to the implementation of the new Labour Code norms in India.

Despite the pressure on profits, the company's revenue performance remained strong.

Revenue from operations rose 9 per cent year-on-year (YoY) to Rs 45,479 crore during the quarter.

Along with the results, Infosys also raised its revenue growth outlook for the full financial year.

The company revised its FY26 revenue guidance upward to 3-3.5 per cent in constant currency terms, while maintaining its operating margin guidance in the range of 20-22 per cent.

"Infosys delivered a strong Q3 performance demonstrating how our differentiated value propositions in enterprise AI, through Infosys Topaz, are consistently driving higher market share," said Salil Parekh, CEO and MD of Infosys.

On the stock market front, Infosys shares have delivered mixed returns to investors. According to NSE data, the stock has given over 16 per cent returns in the last five years and around 6 per cent returns over the past three years.

However, the shares have fallen 17.88 per cent over the last one year and slipped marginally by 0.31 per cent in the recent one-year period.

Infosys stock is also down 2.79 per cent over the last five trading sessions. Ahead of the quarterly results announcement, Infosys shares ended Wednesday's session at Rs 1,608.9, gaining Rs 9.9 or 0.62 per cent on the Indian stock market.

- IANS

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Reader Comments

P
Priyanka N
As a small investor, these quarterly dips are worrying. The stock is down nearly 18% in a year! But they've raised their full-year guidance, so maybe it's a buying opportunity? The AI focus with Topaz sounds promising for future growth. 🤔
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Aman W
The Labour Code impact was expected. It's a necessary adjustment for the country. Profit is down but revenue is up—shows the company's core business is healthy. They're maintaining that 20-22% margin guidance, which is key.
S
Sarah B
Respectfully, while the AI narrative is strong, the nearly 10% QoQ profit drop can't be ignored. It's not just the Labour Code. Need to see if cost management is effective. Hope the revised revenue guidance translates to better shareholder returns soon.
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Karthik V
Infosys is a bellwether for the Indian IT sector. This result is a mixed bag, but raising the annual outlook is a positive signal. The one-time hit is done, now future quarters should be cleaner. Long-term, I'm bullish on our IT giants. 🇮🇳
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Meera T
My husband works at Infosys. The new Labour Code norms mean better PF and gratuity for us. If the company's profit takes a small hit for employee security, I think it's worth it. Family first! 😊

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