Infosys Q1 results: India’s second-largest IT services major, Infosys, posted a consolidated net profit of Rs 6,921 crore for the first quarter of the current financial year, showing a 9% increase year-on-year (YoY). The company’s operational revenue increased by 8% YoY to Rs 42,279 crore.The organisation, headquartered in Bengaluru, has revised its revenue growth guidance upward at the lower end, projecting 1-3% growth in constant currency for FY26.Salil Parekh, CEO and MD of Infosys, said: “Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees.”“Our large deal wins reflect our distinct competitive positioning and deep client relationships,” noted Parekh.
Infosys Q1 Results: Top Highlights
Infosys’ first quarter saw revenue growth of 3.8% YoY and 2.6% QoQ in constant currency (CC) terms. The company secured contracts valued at $3.8 billion, with 55% representing new business.The company’s gross profit increased to Rs 13,055 crore compared to Rs 12,138 crore in the corresponding period last year.For the April-June quarter, the operating margin was 20.8%, showing a reduction of 0.3% YoY and 0.2% QoQ. The company anticipates maintaining this margin between 20-22% throughout FY26.In terms of division performance, financial services led with 5.6% CC growth year-over-year, whilst manufacturing showed robust expansion at 12.2%. Retail remained nearly unchanged with 0.4% growth, and hi-tech operations saw minimal improvement at 1.7%.Life Sciences experienced a decline of 7.9%, while other segments contracted by 15.3% in CC terms.The company continues to utilise Project Maximus for strategic investment priorities, aiming to enhance profitability and stakeholder returns.The first quarter demonstrated robust free cash flow at $884 million, with cash flow conversion exceeding 100% for the fifth straight quarter.CFO Jayesh Sanghrajka noted, “The impact of currency volatility was effectively managed through our proactive hedging strategy.”The voluntary attrition increased slightly to 14.4% from 14.1% in the previous quarter ending March. The workforce remained stable at 323,788 compared to Q4 of FY25.On NSE, Infosys shares finished 0.8% lower at Rs 1,558.9 on Wednesday, prior to the results announcement.
