India’s second-largest IT services exporter, Infosys, reported a 9% year-on-year (YoY) increase in consolidated net profit at ₹6,921 crore for the first quarter ended June 2025, supported by strong deal wins and steady demand in key verticals. Revenue from operations for the quarter rose 8% YoY to ₹42,279 crore.
The company also raised the lower end of its revenue growth guidance for FY26. It now expects growth in the range of 1–3% in constant currency (CC) terms.
“Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees,” said Salil Parekh, CEO and Managing Director of Infosys.
Deal Wins and Growth Drivers
Infosys reported $3.8 billion worth of deal wins in the quarter, with 55% of these being net new. In CC terms, revenue grew 3.8% YoY and 2.6% quarter-on-quarter (QoQ).
“Our large deal wins reflect our distinct competitive positioning and deep client relationships,” Parekh added.
Segment-wise performance was mixed:
- Financial services, Infosys’s largest vertical, grew 5.6% YoY in CC terms.
- Manufacturing saw the strongest momentum, rising 12.2%.
- Retail remained flat with 0.4% growth.
- Hi-tech rose marginally by 1.7%.
- However, Life Sciences and other verticals reported declines of 7.9% and 15.3%, respectively.
Margins and Cash Flow
Gross profit increased to ₹13,055 crore from ₹12,138 crore in the same quarter last year. However, operating margin for the quarter slipped 30 basis points YoY to 20.8%. The company expects margins to remain in the 20–22% range for the full fiscal year.
Free cash flow remained robust at $884 million, marking the fifth straight quarter of over 100% cash flow conversion.
“The impact of currency volatility was effectively managed through our proactive hedging strategy,” said Jayesh Sanghrajka, Chief Financial Officer.
Workforce and Attrition
The total headcount stood at 323,788 at the end of June, almost unchanged from the previous quarter. Voluntary attrition inched up slightly to 14.4%, from 14.1% in Q4 FY25.
Infosys also noted continued investments through its internal Project Maximus initiative, aimed at driving profitable growth and enhancing shareholder returns.
Infosys shares closed 0.8% lower at ₹1,558.9 on the NSE on Wednesday, just ahead of the earnings release.
