THEBUSINESSBYTES BUREAU
BENGALURU, JULY 23, 2026
IT services major Infosys on Thursday reported a 12 per cent
year-on-year increase in consolidated net profit to Rs 7,769 crore for the June
quarter of FY27, driven by healthy revenue growth and stable operating margins,
while trimming the upper end of its full-year revenue growth guidance.
The Bengaluru-headquartered company had posted a consolidated
net profit of Rs 6,921 crore in the corresponding quarter of the previous
financial year.
Revenue from operations rose 14 per cent year-on-year to Rs
48,211 crore during the quarter under review.
For FY27, Infosys revised its constant currency revenue
growth guidance to 1.5-3 per cent, narrowing the upper end of its earlier
forecast, while retaining its operating margin guidance at 20-22 per cent.
Operating profit increased 15 per cent to Rs 10,163 crore,
with operating margin improving to 21.1 per cent from 20.8 per cent a year ago.
Free cash flow stood at Rs 9,051 crore (USD 955 million), translating
into a free cash flow conversion of 116.4 per cent of net profit.
Chief Financial Officer Jayesh Sanghrajka said the company's
"resilient margins of 21.1 per cent and consistent strong cash generation
reflect the strength of our business model, disciplined execution and continued
focus on operational excellence in a challenging business environment."
He said Infosys is accelerating investments in artificial
intelligence (AI), talent and platforms to drive future growth, enhance
productivity and maintain financial flexibility.
The company said AI-related revenue accounted for 8.2 per
cent of its total revenue during the quarter.
Infosys also secured large deals worth USD 3.6 billion during
the quarter, with 61 per cent of the total contract value coming from net new
business.
Financial services continued to be the company's largest
business vertical, contributing 27.9 per cent of total revenue, followed by
manufacturing at 15.9 per cent and energy, utilities, resources and services at
13.4 per cent.
Among business segments, life sciences emerged as the
fastest-growing vertical, registering 24 per cent growth in constant currency
terms, while revenue from the retail segment declined 1.8 per cent.
Separately, Infosys announced that its Board has appointed
Ashiss Kumar Dash as CEO Designate. Dash will succeed Salil Parekh as Managing
Director and Chief Executive Officer with effect from April 1, 2027, subject to
statutory approvals. Parekh will continue to lead the company until March 31,
2027.
