Infosys logo.
Credit: Reuters photo
Bengaluru: Infosys Ltd on Wednesday reported an 8.7 per cent year-on-year increase in consolidated net profit at Rs 6,921 crore for the quarter ended June 30, 2025. In the corresponding quarter last year, its net profit stood at Rs 6,368 crore.
Revenues during the quarter grew 7.5 per cent YoY to Rs 42,279 crore as against Rs 39,315 crore a year ago. Quarter-on-quarter (QoQ), consolidated net profit declined 1.6 per cent from Rs 7,033 crore in Q4FY25.
"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", said Salil Parekh, CEO & MD, Infosys.
Addressing a press conference to announce the financial results for the first quarter, he said, "Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships". Its ROE improved by 140 bps to 30.4% during the quarter.
The company expects revenue growth of 1-3 per cent in constant currency terms for FY26, which is revised upwards from 0-3 per cent earlier. Its operating margin will be in the range of 20-22 per cent, it said.
Total headcount as on June 30 stood at 323,788. The voluntary attrition rate rose to 14.4 per cent. The headcount addition will be in line with the yearly projections. The company gave a wage hike in April.
"Q1 performance is a clear reflection of our unwavering focus on multiple fronts resulting in strong growth at 2.6 per cent QoQ, resilient margins at 20.8 per cent and EPS increase of 8.6 per cent YoY. We continue to leverage Project Maximus to make investments in strategic priorities to drive profitable growth and enhance shareholder value", said Jayesh Sanghrajka, CFO.
"During the last guidance, we had clearly called out that at the lower end of the guidance, we expect heightened uncertainty, and at the upper end we are expecting a steady to marginally improving environment. One quarter gone by we have a strong deal win. That is why we have increased the lower end of the revenue guidance", Sanghrajka said.
Revenues grew by 3.8 per cent YoY in constant currency terms. The operating margins at 20.8 per cent declined 0.3 per cent YoY and 0.2 per cent QoQ. The free cash flow at Rs 7,533 crore declined 17.7 per cent YoY. Its consolidated cash and investments stood at Rs 45,204 crore during the June quarter.
The company signed large deals worth $3.8 billion during the June quarter, of which 55 per cent were new. Some of the deals were focused on AI, cloud, digital transformation.
Among industry segments, manufacturing saw the strongest growth at 12.2 per cent YoY in constant currency terms, followed by energy at 6.4 per cent, and financial services witnessed 5.6 per cent growth in the first quarter.