Infosys Ltd, India’s second-largest IT services company, is set to announce its Q2 FY26 results today, and market participants are keenly watching for signs of demand recovery, margin improvement, and deal momentum.
Analysts expect the company to report moderate sequential growth, driven by a seasonally strong quarter, absence of wage hikes, and early signs of improvement in key verticals like BFSI (Banking, Financial Services and Insurance).
According to estimates, Infosys’ consolidated revenue is expected to rise around 4–4.5 per cent quarter-on-quarter to Rs 44,126 crore, compared to Rs 42,279 crore in the previous quarter.
In dollar terms, revenue may increase by about 2 per cent to $504 crore, reflecting stable demand and gradual recovery in client spending.
EBIT is likely to rise 5.9 per cent sequentially to Rs 9,321 crore, improving margins from 20.8 per cent to 21.1 per cent, supported by operational efficiencies and cost control measures.
Net profit is estimated to come in at Rs 7,226 crore, up about 4.4 per cent from Rs 6,921 crore in the June quarter.
The absence of wage hikes this quarter and productivity benefits from AI-led transformation programs are expected to aid margin expansion.
However, some pricing pressure could persist in new deals as automation and generative AI impact traditional project billing structures.
In terms of business verticals, the US BFSI segment is likely to show resilience with gradual recovery in discretionary spending, while the retail vertical may remain weak due to global macroeconomic challenges.
Analysts expect Infosys’ total contract value (TCV) of new deals to come in at around $300 crore, slightly lower than the previous quarter, but still indicative of healthy pipeline visibility.
Investors will also focus on the company’s FY26 revenue guidance, which is expected to be raised from 1–3 per cent to 2–3 per cent, reflecting a cautious yet optimistic outlook.
Any commentary on client budgets, digital transformation demand, and large-deal ramp-ups will be closely monitored.
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