Bengaluru-based IT giant Infosys reported a net profit of Rs 7,033 crore for the March 2025 quarter, down 12 per cent YoY. While revenue rose marginally on a quarter-on-quarter basis to Rs 41,850 crore as per Zee Business estimates, it was down by 2 per cent sequentially to Rs 40,925 crore as per official filings. EBIT came in at Rs 8,575 crore, with EBIT margin contracting to 21 per cent, down from 21.2 per cent in the previous quarter.
In constant currency (CC) terms, revenue declined 3.5 per cent QoQ, underperforming expectations. Dollar revenues dropped 4.2 per cent to $485 crore. The drop was attributed to seasonal weakness, furloughs, and wage hikes, all of which weighed on profitability.
FY26 guidance a letdown for the Street
Infosys has guided for a subdued revenue growth of 0–3 per cent in CC terms for FY26, significantly lower than the 4.5–5 per cent projection made at the end of Q3. The Street had anticipated a 2–4 per cent growth. EBIT margin guidance was pegged between 20–22 per cent.
Management cited weak discretionary spending and prolonged deal cycles as key concerns going into the new fiscal. The company’s commentary suggested that while the deal pipeline remains strong, client decision-making has slowed, especially in verticals like BFSI, due to macro uncertainty and tariff-related disruptions.
Deal wins steady; dividend sweetens the blow
Despite operational challenges, Infosys announced large deal wins worth $2.6 billion during the March quarter, marginally higher than the $2.5 billion recorded in Q3. A final dividend of Rs 22 per share was also declared, with a record date set for May 30, 2025, and payout scheduled on June 30.
Stock reacts ahead of results; ADRs slip post-announcement
Shares of Infosys ended 1.09 per cent higher at Rs 1,429.80 on April 17. However, post-results, the ADRs dipped 1.4 per cent in US pre-market trade. The stock has corrected over 11 per cent in the past month.
Outlook cautious; all eyes on discretionary tech spending
The management remains cautious about near-term revenue momentum. Investors will be closely watching commentary on discretionary tech spends, deal closures, and macro recovery, especially in the BFSI space, in the coming quarters.
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