Bengaluru, July 23 (UNI) Infosys Ltd, one of India’s IT bellwethers, opened FY26 with a measured performance that reveals both resilience and restraint in a still-uncertain global environment. The Bengaluru-headquartered tech giant posted a 3.8% year-on-year growth and a 2.6% sequential rise in revenues (constant currency), driven largely by enterprise AI initiatives and large deal momentum.
The topline in rupee terms reached ₹42,279 crore, marking a healthy 7.5% year-on-year growth. Yet, this was juxtaposed with a slight erosion in profitability metrics — operating margin dipped by 30 basis points year-on-year to 20.8%, and free cash flow fell 17.7% YoY to ₹7,533 crore. While the margin decline was modest, it reflects the delicate balance Infosys is navigating between cost discipline and investment in future-forward technologies.
CEO Salil Parekh underscored the company’s pivot to enterprise AI as a key differentiator. “Our large deal wins of \\\\\\\\$3.8 billion, with 55% net new, reflect our distinct competitive positioning,” he said. The results appear to validate this shift — Infosys’ recent wins include cloud transformation, GenAI adoption, and modernization projects with Fortune 500 clients.
Yet the revenue guidance for FY26 — revised to a modest 1%-3% in constant currency — signals management’s caution. This tempered outlook suggests Infosys sees headwinds in client spending, especially in BFSI and retail verticals, which have traditionally been core growth drivers.
CFO Jayesh Sanghrajka highlighted Project Maximus — an internal initiative focused on efficiency and strategic reinvestment — as central to maintaining operating margins at 20.8% despite the revenue slowdown. Free cash flow conversion remained strong at 108.8% of net profit, and ROE saw an uptick of 140 basis points to 30.4%, showing underlying financial strength.
But the 17.7% YoY decline in rupee free cash flow hints at rising working capital needs or back-loaded payments on recent large deals. A sustained drop here could test Infosys’ dividend and buyback policies in quarters ahead.
Its Earnings Per Share has grown 8.6% year-on-year to ₹16.70.
