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Informist, Thursday, Oct. 16, 2025

 

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--Infosys Jul-Sept consol net profit INR 73.64 bln 
--Analysts saw Infosys Jul-Sept consol net profit at INR 71.97 bln 
--Infosys Jul-Sept consol revenue INR 444.90 bln 
--Analysts saw Infosys Jul-Sept consol revenue at INR 441.14 bln 
--Infosys: See FY26 sales growth 2-3% in constant currency vs 1-3?rlier 
--Infosys retains FY26 operating margin guidance at 20-22% 
--Infosys Jul-Sept consol net profit INR 73.64 bln vs INR 69.21 bln qtr ago 
--Infosys Jul-Sept consol revenue INR 444.90 bln vs INR 422.79 bln qtr ago 
--Infosys Q2 large deal total contract value $3.1 bln vs $3.8 bln qtr ago 
--Infosys Jul-Sept operating margin 21% vs 20.8% qtr ago 
--Infosys Apr-Sept consol net profit INR 142.85 bln vs INR 128.74 bln year ago 
--Infosys Jul-Sept free cash flow $1.1 bln 
--Infosys Jul-Sept revenue up 2.2% QoQ in constant currency, up 2.9% YoY 
--Infosys Apr-Sept consol revenue INR 867.69 bln vs INR 803.00 bln year ago 
--Infosys to pay INR 23 per share interim dividend 
--Infosys interim dividend record date is Oct 27 
--Infosys Jul-Sept fincl svcs sales up 5.4% on year in constant currency 
--Infosys Jul-Sept mfg sales up 6.6% on year in constant currency 
--Infosys Jul-Sept energy, utilities sales up 2.1% on yr in constant currency 
--Infosys Jul-Sept retail revenue down 2.3% on year in constant currency 
--Infosys Jul-Sept communication sales up 4.7% on yr in constant currency 
--Infosys Jul-Sept hi-tech revenue up 8.6% on year in constant currency 
--Infosys Q2 life sciences revenue dn 10.5% on year in constant currency 
--Infosys Jul-Sept N America sales up 2% on year in constant currency 
--Infosys Jul-Sept Europe sales up 6.3% on year in constant currency 
--Infosys Jul-Sept revenue from India up 6.8% on year in constant currency 
--Infosys IT services 12-month attrition 14.3% vs 14.4% quarter ago 
--Infosys Jul-Sept revenue from fincl svcs 27.7% of sales vs 27.9% qtr ago 
--Infosys employee headcount 331,991 as on Sept 30 vs 323,788 on Jun 30 
--Infosys Jul-Sept revenue from mfg segment 16.5% of sales vs 16.1% year ago 
--Infosys Jul-Sept energy, utilities revenue 13.4% of sales vs 13.6% qtr ago 
--Infosys Q2 employee utilisation including trainees 82.2% vs 82.7% qtr ago 
--Infosys Jul-Sept revenue from retail ops 12.7% of sales vs 13.4% qtr ago 
--Infosys Q2 revenue from communications ops 12.1% of sales vs 12.0% qtr ago 
--Infosys Q2 employee utilisation excluding trainees 85.1% vs 85.2% qtr ago 
--Infosys Jul-Sept revenue from N America 56.3% of sales vs 56.5% qtr ago 
--Infosys Jul-Sept revenue from Europe 31.7% of sales vs 31.5% qtr ago 

 

By Arya S. Biju

 

MUMBAI – Infosys Ltd. reported a mid-single-digit sequential rise in its bottom line for the September quarter, recovering from the sequential decline reported in the trailing quarter. Its top line for the quarter also saw a mid-single-digit sequential rise, marking the highest sequential rise in 12 quarters. Growth across most segments drove the information technology major's top line in the seasonally strong quarter.

 

The Bengaluru-based company's consolidated net profit for the reporting quarter rose over 6% sequentially to INR 73.64 billion, beating analysts' estimate of INR 71.97 billion. Its consolidated revenue for the quarter increased over 5% sequentially to INR 444.90 billion, also beating the Street's view of INR 441.14 billion. For the trailing quarter, the company had reported a sequential decline of almost 2% in the bottom line and a 3% on-quarter rise in the top line. On a year-on-year basis, the bottom line and the top line for the reporting quarter rose over 13% and around 9%, respectively.

 

The company also revised its revenue growth guidance for the financial year 2025-26 (Apr-Mar) to 2-3% from 1-3?rlier. While most analysts had expected the information technology company to retain its FY26 revenue growth guidance of 1-3%, three broking firms--Emkay Global Financial Services, Equirus Securities, and Kotak Securities--had expected the company to revise its sales growth guidance to 2-3%.

 

The company, however, retained its FY26 margin guidance of 20-22%. This is the eleventh consecutive quarter that the company has retained its margin guidance. The company's operating margin for the September quarter expanded by 20 basis points sequentially but contracted by 10 bps on year to 21.0%.

 

"We had robust all-round performance in Q2--strong growth, resilient margins, very high cash generation and 13.1% EPS (earnings per share) growth year on year in rupee terms. We continue to make strategic investments to future-proof the business with a tight focus on execution, amidst high uncertainty," Chief Financial Officer Jayesh Sanghrajka said in a press release.

 

In the reporting quarter, Infosys's revenue grew 2.2% sequentially and 2.9% on year in constant currency terms. It received large deals with a total contract value of $3.1 billion in the quarter, with a net new of 67%. This was lower than the $3.8-billion worth of orders it had won in the trailing quarter but higher than the $2.6-billion worth contracts won in the March quarter. Analysts had expected the company's large deal wins for the quarter to be in the range of $3 billion-$4 billion.

 

"We have now delivered two consecutive quarters of strong growth, demonstrating our unique market positioning and client relevance. Strong deal wins, with 67% net new in Q2, reflect our deep understanding of clients' priorities to deliver value from AI in this environment," Managing Director and Chief Executive Officer Salil Parekh said in the release.

 

The company generated free cash flow of $1.1 billion, or about INR 96.77 billion, up 38% on year. For the six months ended September, it reported a consolidated net profit of INR 142.85 billion, up around 11% on year, and consolidated revenue of INR 867.69 billion, up over 8% on year. 

 

Infosys added 8,203 employees in the September quarter, taking its employee count to 331,991 as of Sept. 30. The number of software engineers at the company increased to 314,500 as of Sept. 30 from 306,706 at the end of the June quarter. The utilisation of employees, including trainees, was 82.2% as of Sept. 30, compared with 82.7% at the end of the trailing quarter. Excluding trainees, utilisation was 85.1% compared to 85.2% in the previous quarter.

 

The company's last 12 months voluntary attrition rate in the information technology services segment was 14.3% as of Sept. 30, down slightly from 14.4% as of Jun. 30 but up from 12.9% a year ago. The company spent INR 234.38 billion under the employee benefit expenses head in the September quarter, up nearly 3% on quarter and around 9% on year. 

 

The company's total expenditure for the reporting quarter rose nearly 5% on quarter and around 9% on year to INR 352.43 billion. This was mainly on the back of a 3-11% sequential rise in its employee benefit expenses, costs related to software packages, and those related to technical subcontractors. The company's other expenses for the quarter jumped nearly 28% sequentially while its tax expenses rose just over 1% on quarter.

 

The revenue from the company's biggest segment--financial services--grew 5.4% on year in constant currency terms while the sales contribution from the segment declined slightly to 27.7% of total sales from 27.9% in the trailing quarter. Revenue from its second-biggest segment--the manufacturing vertical--grew 6.6% on year in constant currency terms. Sales from this segment contributed to 16.5% of the company's total sales compared to 16.1% in the trailing quarter.

 

Revenue from the energy, utilities, resources, and services segment, which contributed over 13% of the company's total sales in the September quarter, grew 2.1% on year in constant currency terms while revenue from the retail segment, which also contributed around 13% of total sales, fell 2.3% on year. The communications segment's revenue grew 4.7% on year in constant currency terms. The revenue contribution from this segment rose slightly to 12.1% as of Sept. 30 from 12.0% in the trailing quarter. Revenue from the company's hi-tech segment rose 8.6% on year in constant currency terms while that from the life sciences segment fell 10.5% on year during the September quarter.

 

Revenue from the company's operations in North America grew 2% on year in constant currency and accounted for 56.3% of the overall top line. Its revenue from the second-biggest region, Europe, rose 6.3% on year in constant currency to constitute 31.7% of the company's total sales. Revenue from India, which only contributed 3.1% to the company's total sales for the reporting quarter, grew 6.8% on year in constant currency terms.

 

Infosys announced its September quarter earnings after market hours Thursday. Along with the financial results, the company declard an interim dividend of INR 23 per share with Oct. 27 as the record date and Nov. 7 as the payout date. Ahead of the earnings, its shares closed slightly lower at INR 1,471.50 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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