What happened
Infosys reported a 6% rise in consolidated net profit to ₹7,823 crore for the second quarter of FY27 (July to September 2026), against ₹7,364 crore a year earlier. The results came on Friday, 23 October, after market hours.
The company also lowered its revenue growth guidance for FY27 to 1-2% in constant currency, from 1.5-3% earlier. Constant currency strips out the effect of exchange-rate swings, so it shows underlying growth. Infosys, as reported by the Economic Times, pointed to a challenging demand environment. It kept its operating margin guidance at 20-22% for the year.
Key numbers
- Revenue from operations: ₹49,244 crore, up about 11% year-on-year, according to Economic Times and Business Today.
- Sequentially, profit rose 0.7% from ₹7,769 crore in the June quarter, and revenue rose 2% from ₹48,211 crore.
- Dollar revenue was $5.15 billion, up 1.3% from a year earlier. Adjusted for currency moves, revenue was 1.5% higher than a year ago and 1.2% higher than in the previous quarter.
- Operating profit rose 10.4% to ₹10,330 crore, with an operating margin of 21%, against 21.1% in the June quarter.
- Free cash flow was ₹8,898 crore, down 8.1% year-on-year. Cash and investments stood at ₹45,232 crore at the end of September.
According to the Economic Times, revenue was broadly in line with expectations, while profit growth fell short of the 8% that an average of seven brokerages had projected.
Deals, AI and segments
Large deals had a total contract value of $5.2 billion, with new business making up 62%. This included a mega deal above $2 billion. CEO Salil Parekh said the deals reinforced Infosys’s position as a trusted partner for large transformation programmes.
Revenue from AI services rose 29% from the previous quarter and made up 10.5% of total revenue.
Life sciences grew 32.5% in constant currency, while hi-tech fell 17.3% and retail fell 7.7%. Financial services grew 2.1%. North America, which contributed 54.6% of revenue, declined 1.5%, while Europe grew 4.6%.
What it means for you
If you hold Infosys shares directly or through a mutual fund, the key points are the lower growth outlook and the dividend. Guidance is the company’s own forecast, so a cut signals slower expected revenue growth than before. Margins, though, were held steady.
The board declared an interim dividend of ₹26 per share, up from ₹23 a year earlier. Shareholders on record as of 3 November 2026 are eligible, and payment is due on 11 November 2026. For example, someone holding 100 shares would be entitled to ₹2,600 before any tax.
Infosys shares settled 0.30% higher at ₹1,154.50 on Friday, according to Business Today. The results were announced after market hours.
Background
Infosys is a Bengaluru-based IT services company. It also reported a net addition of 4,480 employees in the quarter, taking headcount to 3,32,542. Voluntary attrition in IT services eased to 12.7% from 13%.
For the first half of FY27, net profit rose 9% to ₹15,592 crore and revenue rose 12% to ₹97,454 crore. CFO Jayesh Sanghrajka said cost and efficiency measures, along with required investments, kept margins stable amid volatility.
Index moves in large IT stocks can affect the Nifty 50 and the Sensex.
