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Key Points

Infosys has reported its Q1 financial results with a slight dip in quarterly profits but impressive year-on-year growth. The company's strong performance in enterprise AI and significant deal wins highlight its resilience in the competitive IT services market. With a robust deal pipeline and strategic focus on emerging technologies, Infosys maintains an optimistic outlook. The company's diversified portfolio and proactive management continue to position it as a leader in the global IT landscape.

Key Points: Infosys Q1 Profits Dip Slightly Amid Strong AI and Deal Wins

  • Infosys secures $3.8B in large deals with 55% from new clients
  • Financial services vertical leads growth at 5.6% YoY
  • Operating margins steady at 20.8%
  • Workforce reaches 323,788 employees
3 min read

Infosys' Q1 net profit dips 1.6 pc sequentially to Rs 6,924 crore, revenue up

Infosys reports 1.6% QoQ profit decline but posts 8.7% YoY growth, secures $3.8B in large deals with robust enterprise AI strategy

"Q1 performance reflects our strength in enterprise AI and client consolidation - Salil Parekh, CEO Infosys"

Mumbai, July 23

IT services giant Infosys on Wednesday reported a 1.61 per cent decline in net profit on a quarter-on-quarter (QoQ) basis for the April–June quarter, with the figure standing at Rs 6,924 crore compared to Rs 7,038 crore in the previous March quarter (Q4 FY25).

However, on a year-on-year (YoY) basis, the company posted an 8.7 per cent rise in net profit, according to its stock exchange filing.

The company's revenue rose 7.5 per cent YoY to Rs 42,279 crore, while on a sequential basis, revenue was up by 3.3 per cent, compared to Rs 40,925 crore in Q4 FY25.

The company's total expenses rose slightly to Rs 33,581 crore in Q1, compared to Rs 32,452 crore in the previous quarter.

Infosys' gross profit also improved to Rs 13,055 crore, from Rs 12,138 crore in the year-ago quarter.

Infosys revised its full-year FY26 revenue growth guidance to 1-3 per cent in constant currency, raising the lower end of the forecast.

CEO and MD Salil Parekh said the Q1 performance reflects the company's strength in enterprise AI, client consolidation, and the dedication of its over 3 lakh employees.

The company secured $3.8 billion in large deals during the quarter, with 55 per cent of the wins coming from new clients -- further strengthening its position in the global IT market.

In terms of operating margins, Infosys posted 20.8 per cent in Q1, slightly down by 0.3 per cent YoY and 0.2 per cent QoQ, but remains confident of maintaining the margin in the 20-22 per cent range for FY26.

Among business verticals, financial services led the growth with 5.6 per cent YoY increase in constant currency (CC) terms.

The manufacturing segment also posted strong growth at 12.2 per cent, while retail and hi-tech showed minor improvements.

However, life sciences declined 7.9 per cent, and other segments contracted 15.3 per cent.

Infosys also reported robust free cash flow of $884 million, with cash flow conversion exceeding 100 per cent for the fifth consecutive quarter.

CFO Jayesh Sanghrajka said the impact of currency volatility was well managed due to Infosys' proactive hedging strategy.

On the human resources front, Infosys reported a slight increase in voluntary attrition, which rose to 14.4 per cent in Q1 from 14.1 per cent in Q4, and 12.7 per cent in Q1 FY25.

The company's workforce stood at 323,788 employees at the end of June 2025 -- reflecting a net addition of 210 employees during the quarter and a year-on-year increase of 8,456.

Infosys shares closed 0.8 per cent lower at Rs 1,558.9 on the NSE on Wednesday, ahead of the earnings announcement.

- IANS

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Reader Comments

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Priyanka N
Concerned about the rising attrition rate (14.4% now). As an ex-Infoscion, I know how stressful the work environment can be. Management should focus more on employee retention than just profits.
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Aman W
$3.8 billion in deals is massive! 😲 Infosys is truly competing with global giants now. The manufacturing sector growth at 12.2% shows diversification beyond traditional IT services. Bullish on long term prospects.
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Sarah B
The 1-3% revenue guidance seems conservative compared to TCS. Is Infosys being cautious or is there something we're missing? The life sciences decline (-7.9%) is worrying for healthcare tech investors.
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Karthik V
Free cash flow of $884 million is impressive 💰 Shows strong financial discipline. As a shareholder, I'm happy they're maintaining 20-22% margin guidance despite global headwinds. Dividend should be good this year!
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Neha E
Only 210 net employee addition this quarter? After all the campus hiring promises? Disappointing for freshers. Hope they ramp up hiring in coming quarters 🤞

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