Infosys Reports ₹6,488 Crore Net Profit in Q4 FY25; FY26 Growth Forecast Pegged at 3–5%
Infosys Q4 FY25 results show an 18.6% drop in net profit despite a 9.7% rise in revenue. The company projects 3–5% growth in FY26 amid cautious global demand.
Key Highlights:
Infosys, India’s second-largest IT services firm, on April 17, 2025, announced its financial results for the fourth quarter (Q4) and full fiscal year FY25, posting a mixed performance marked by strong revenue growth but shrinking net profit.
For Q4 FY25, Infosys reported a net profit of ₹6,488 crore, down 18.6% year-on-year, as client spending remained muted and operating margins faced headwinds. However, the company recorded a revenue of ₹41,617 crore, a 9.7% increase over Q4 FY24, indicating robust deal execution and digital demand stability in select verticals.
Infosys Q4 FY25: Key Financial Highlights
| Metric | Q4 FY25 | YoY Growth |
|---|---|---|
| Net Profit | ₹6,488 crore | -18.6% |
| Revenue | ₹41,617 crore | +9.7% |
| Operating Margin | 20.1% | vs 21.0% in Q4 FY24 |
- EPS (Earnings Per Share): ₹15.49
- Attrition: Lowered to 12.1%, from 14.5% YoY
- Total Headcount: 3,19,846 as of March 2025
The management attributed the profit decline to project delays, higher subcontracting costs, and investment in GenAI capabilities.
Infosys FY25 Full-Year Performance
- Net Profit FY25: ₹26,248 crore (vs ₹26,233 crore in FY24)
- Total Revenue FY25: ₹1,53,670 crore (up from ₹1,28,933 crore in FY24)
- Full-year Operating Margin: 20.3%
Despite challenges, the company maintained stable profitability on a full-year basis, supported by continued digital transformation projects and AI-led solutions in BFSI, retail, and manufacturing sectors.
Infosys Guidance for FY26
Infosys has issued cautious guidance for FY26, projecting:
- Revenue growth (constant currency): 3% to 5%
- Operating margin: 20% to 22%
CEO & MD Salil Parekh stated,
“We are investing strategically in GenAI and cloud services while prioritizing large deal execution. FY26 will be a year of focused, quality growth.”
What This Means for You
- Investors: The 18.6% drop in profit may weigh on short-term sentiment, but revenue growth and stable margin guidance show long-term strength.
- Clients: Infosys continues to prioritize AI integration and digital agility, suggesting stronger future service capabilities.
- Job Seekers & Employees: With attrition declining and headcount stable, Infosys appears committed to employee retention and reskilling.
- IT Sector Outlook: Infosys’ cautious growth forecast aligns with a broader trend of budget tightening among global clients.
How to Take Action
- Shareholders should monitor upcoming dividend announcements and AGM updates.
- Analysts may re-evaluate FY26 EPS forecasts based on narrow guidance and profitability risks.
- Clients in BFSI, healthcare, and retail should expect increased AI-driven solutions across digital and cloud portfolios.
- Job aspirants should align skillsets with Infosys’ focus areas like GenAI, automation, and cloud architecture.
Who Will Be Affected
- Institutional investors with heavy Infosys exposure
- Startups and vendors in IT services supply chains
- Clients in Europe and North America, where macroeconomic caution persists
- Industry competitors, especially mid-tier IT firms aiming to absorb outsourced work from large players
Strategic Focus: Infosys Bets Big on GenAI and Efficiency
Infosys continues to pivot toward Generative AI, automation, and vertical-specific transformation. Over the last two quarters, it signed several large deals including:
- A $1.5 billion AI partnership with a global bank
- Multi-year transformation projects in telecom and manufacturing
The company is also intensifying investments in employee upskilling for AI, cloud engineering, and cybersecurity.
Infosys Results Signal Cautious Optimism for FY26
While Infosys Q4 FY25 results reflect margin pressure and soft client demand, the company’s 9.7% revenue growth, stable full-year earnings, and a moderate FY26 outlook show resilience and strategic clarity.
Investors, employees, and partners should track Infosys’ execution in AI-led transformation, as it seeks to balance innovation with cost discipline.
Stay with Hindustan Herald for live updates on Infosys earnings calls, dividend decisions, and IT industry forecasts.
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