Infosys Q4 net profit up 21% to Rs 8,501 cr

The company expects FY27 revenue growth to be between 1.5% and 3.5% in CC terms.

Bengaluru: IT services firm Infosys on Thursday posted a 20.87% increase in its consolidated net profit for the quarter ended March 2026 at Rs 8,501 crore. This was largely in line with analysts' expectations. The company had posted Rs 7,033 crore net profit in the year-ago period.

Signalling steady momentum, the company reported a 13.38% increase in its revenue from operations for the March quarter at Rs 46,402 crore compared to Rs 40,925 crore in Q4FY25.

For the full fiscal year FY26, it posted Rs 1,78,650 crore revenue, up 9.6% compared to FY25.

The company has guided for revenue growth of 1.5% to 3.5% in constant currency (CC) terms for FY27, and operating margin of 20% to 22%.

During the post-earnings press conference, Infosys CEO and MD Salil Parekh said the company is witnessing good growth in financial services (2.9% y-o-y cc growth), Energy, utilities, resources and services (6.7%) verticals.

In terms of projects, he said net new deals are pretty large and that provide them support for growth. "We are not seeing something that has unusually changed from the last quarter to this quarter," he said.

On impact due to geopolitical uncertainties, Parekh said the current situation looks like things might stabilise. "We have smaller businesses in new geographies like Japan where we are doing quite well," he said.

Anthropic recently released a new model Mythos that discovers vulnerabilities, and it is specialised in cybersecurity.

Talking about Mythos, the CEO said that AI systems are revealing more vulnerabilities than previously thought and that it might open  up opportunities for Infosys. "If we build capabilities in that,  we can help our clients," he said.

The simplicity and strength of our AI services strategy across six areas is gaining traction in the market further strengthened by strong ecosystem AI partnerships enabling clients to get value from AI, he added.

During the press conference, the CEO also said that the board is very active in looking at the company's AI work. Nandan Nilekani is very active as he has good vision on the way AI is moving forward. 

As Parekh's current term ends in March 2027, when asked about the succession process, he declined to comment.“FY 26 was a year of disciplined execution and financial resilience reflecting in 21% adjusted operating margin and healthy free cash flow of $3.7 billion. Savings from Project Maximus enabled us to invest in strategic areas like talent, AI and sales & marketing”, said Jayesh Sanghrajka, CFO.

“We remain focused on margins and cash generation as we navigate an evolving macro environment. In line with our capital allocation policy, the Board has proposed a final dividend of Rs 25 per share, which along with interim dividend and recently concluded buyback, amounts to over Rs 37,500 crore returned to shareholders for FY26”, he added.

Commenting on Infosys' earnings, Shubham Rathore, Principal Analyst, Gartner, said Infosys reported a stable 4.1% year-over-year revenue growth in constant currency for Q4 FY26, reflecting resilient execution amidst ongoing macroeconomic uncertainties.

"This steady performance is underpinned by strong enterprise demand for artificial intelligence and transformation deals, aligning with Gartner’s forecast that the worldwide AI services market will grow by 34.0% in 2026," he said.