Mumbai, July 23 (IANS) 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
pk/na
