Infosys Gives Muted Revenue Guidance For 2025-26

Infosys has guided for flat to 3% revenue growth in 2025-26, signalling continued macroeconomic stress and tariff-related uncertainty. India’s second-largest software exporter had earlier forecast 4.5–5% growth for 2024-25 but fell short, posting a 4.2% rise in constant currency terms.

Net profit in the March quarter fell 11.7% on year to ₹70.33 billion. Sequentially, profit rose 3.3%. Revenue stood at ₹409.25 billion, up 7.9% on year but 2% lower than the previous quarter.

The company maintained its operating margin guidance of 20–22% for 2025-26.

“Our performance for the year has been robust in terms of revenues, margin expansion and highest-ever free cash generation,” said Chief Executive Officer and Managing Director Salil Parekh. “Our depth in AI, cloud and digital, and strength in cost efficiency, automation and consolidation, position us well for client needs.”

Operating margin for the March quarter stood at 21%, up 0.9 percentage point on year and down 0.3 percentage point sequentially.
Total contract value for the quarter was steady at $2.6 billion, marginally up from $2.5 billion in the December quarter and $2.4 billion in the September quarter, but lower than $4.1 billion in the June quarter.

"(The magins in 2024-25) expanded by 0.5 percentage point, reflecting our focus on efficiency and disciplined execution of Project Maximus,” said Chief Financial Officer Jayesh Sanghrajka. “We delivered the highest free cash flow in the company’s history.”
Headcount rose by 199 employees during the quarter to 323,578. Attrition climbed to 14% from 12.9% in the September quarter.