Infosys Q1 net profit slips 8.6 pc sequentially to Rs 7,775 crore
Mumbai, July 23
Infosys Limited on Thursday reported a consolidated net profit of Rs 7,775 crore for the first quarter of FY27, down 8.6 per cent from Rs 8,509 crore in the January-March quarter.
On a year-on-year basis, however, the Bengaluru-headquartered IT major registered a 12.3 per cent increase in profit from Rs 6,921 crore reported in the corresponding quarter of the previous financial year (Q1 FY26), according to an exchange filing.
Revenue from operations rose to Rs 48,211 crore during the April-June period, marking a 14 per cent increase over Rs 42,279 crore in the year-ago quarter.
On a sequential basis, revenue grew 3.9 per cent from Rs 46,402 crore reported in the March quarter.
The company's total expenses increased to Rs 38,157 crore in the quarter under review from Rs 33,581 crore a year ago, as per its regulatory filing.
The earnings were announced after market hours. Ahead of the results, Infosys shares ended marginally lower at Rs 1,052.90 on the National Stock Exchange (NSE), down Rs 0.80 or 0.08 per cent.
The company also announced a major leadership transition. Infosys Chairman Nandan Nilekani said the Board has appointed Ashiss Kumar Dash as CEO Designate, describing him as an internal leader capable of driving bold transformation while preserving the company's values and customer trust.
Nilekani also thanked Managing Director and CEO Salil Parekh for his leadership over the past nine years, saying he had strengthened Infosys' market position, expanded its capabilities, delivered significant value to shareholders and laid the foundation for a differentiated artificial intelligence strategy.
"Salil has been instrumental in the turnaround of the company, establishing its leadership in the digital era, and for laying the foundation for a strong and differentiated AI strategy," he mentioned.
Commenting on the development, Parekh said it had been an honour to lead Infosys through a period in which the company doubled its annual revenue from $10 billion to more than $20 billion.
"We have established Infosys as a leader in digital transformation and have put in place a distinctive strategy for AI transformation," he mentioned.
— IANS
Reader Comments
Salil Parekh doubled revenue from $10B to $20B – that's no small feat. He really turned around the company after the Vishal Sikka era. Kudos to him. But the sequential profit dip is concerning – hope the new CEO focuses on cost optimization without laying off too many people.
Revenue up 14% YoY but profit down 8.6% sequentially? Something doesn't add up. Expenses increased a lot – may be due to salary hikes or AI investments. Infosys should clarify. Also, Nandan Nilekani ji is still leading well.
As an employee, I'm happy that Infosys is growing, but the management should also focus on employee morale. Profit dip might mean less bonuses or hikes. Leadership change can bring new energy. Aashish sir is a homegrown leader, so that's a good sign.
Infosys is a great Indian story, but these sequential declines worry me. Maybe it's seasonal. The AI strategy sounds promising. I just hope they don't go too heavy on AI and forget about their core services. It's a balancing act.
As a global investor, I'm watching Infosys closely. YoY growth is solid, but profit margins are under pressure. The leadership transition is critical – internal promotion is good for stability. Indian IT sector is still resilient despite global headwinds.
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