Infosys, one of India’s leading IT giants, delivered a resilient performance in the first quarter of FY26, showcasing both revenue growth and operational stability amidst a challenging global environment.
Financial Highlights
For the quarter ended June 2025, Infosys reported:
- Revenue of ₹42,279 crore, up from ₹39,315 crore in Q1 FY25 — a 7.5% year-on-year (YoY) growth.
- EBITDA stood at ₹9,740 crore, showing a modest uptick of 7.9% from ₹9,021 crore last year.
- Profit After Tax (PAT) came in at ₹6,924 crore, up by 9.09% from ₹6,347 crore YoY.
- Operating margin remained stable at 20.8%—reflecting disciplined cost management and efficiency.
Infosys also secured $3.8 billion in Total Contract Value (TCV) from large deals, with 55% net new deals, offering strong contract pipelin visibility for upcoming quarters.
Vertical Performance: Sector-Wise Breakdown
- Financial Services continued to be Infosys’ largest revenue contributor at 27.9%, though slightly low than the previous quarter (28.4%).
- Manufacturing (16.1%) and Energy, Utilities, and Resources (13.6%) recorded double-digit contributions and healthy momentum.
- Retail (13.4%) and Communication (12%) remained relatively stable.
- Life Sciences saw a sequential decline, falling to 6.5% of the revenue mix.
Geography-Wise Revenue Insights
- North America contributed a dominate 56.5%, though growth was somewhat muted.
- Europe emerged as a strong performer, growing to 31.5% on the back of large deal ramp-ups.
- India and the Rest of the World contributed 2.9% and 9.1%, respectively.
Operational Snapshot
- Headcount stood at 323,788, supported by a controlled attrition rate of 14.4%.
- Free Cash Flow for the quarter was ₹7,533 crore With consolidated cash and cash investments at ₹45,204 crore investments
Cash and equivalents remained robust at ₹45,204 crore, reinforcing Infosys' financial resilience.
Outlook for Q2 FY26
Infosys remains cautiously optimistic going into the next quarter. The company expects growth to be led by:
- Continued deal ramp-ups
- Cost optimization initiatives
- AI-led transformation programs, particularly under its proprietary platform Infosys Topaz
Operating margins are projected to remain in the 20–22% range, backed by automation, lean delivery models, and efficiency gains.
That said, a few challenges linger:
- Conservative client spending in Life Sciences
- Tariffs impacting Manufacturing
- Slow growth in North America
Final Takeaway
Infosys’ Q1 FY26 performance underlines its ability to maintain stability even as global demand cools. While macro uncertainties persist, the company’s strong deal pipeline, robust margins, and digital transformation focus provide a solid foundation for sustained growth.
Easy & quick
Leave A Comment?