Infosys Q1 Results: Net Profit Rises 9% YoY to ₹6,921 Crore; Revenue Up 8%
Infosys reported a strong Q1 FY26 performance with a 9% YoY rise in net profit and 8% growth in revenue. Read detailed insights, ADR performance, and market reactions here.
Table of Contents
Introduction
India’s second-largest IT services company, Infosys, reported its Q1 FY26 results on July 20, 2025, showing resilient growth despite global macroeconomic challenges. The company posted a 9% year-on-year rise in net profit to ₹6,921 crore and an 8% rise in revenue to ₹38,494 crore
Infosys Q1 FY26 Results Overview
| Particulars | Q1 FY26 | Q1 FY25 | % Change YoY |
|---|---|---|---|
| Revenue | ₹38,494 crore | ₹35,998 crore | +8% |
| Net Profit | ₹6,921 crore | ₹6,345 crore | +9% |
| Operating Margin | 20.6% | 20.8% | -20 bps |
| Attrition Rate | 12.8% | 17.3% | Improvement |
Infosys maintained stable margins despite wage hikes and macro pressures, aided by operational efficiency initiatives.
Key Financial Highlights
Revenue Growth
Growth driven by strong deal wins across BFSI, Retail, and Manufacturing sectors.
Constant currency revenue growth at 7.5% YoY, slightly below analyst expectations of ~8%.
Profitability
Net profit rose to ₹6,921 crore, aided by higher other income and rupee depreciation benefits.
EPS increased by 8.5% YoY, reflecting consistent shareholder value creation.
Operating Margins
Margins declined marginally to 20.6% due to wage hikes and visa costs but remained within company’s guided band of 20-22%.
Infosys ADR Price Reaction
Infosys ADR (American Depository Receipt) listed on NYSE showed muted reaction post results:
| Date | Infosys ADR Price (USD) | % Change |
|---|---|---|
| July 19, 2025 | 17.85 | – |
| July 20, 2025 | 17.78 | -0.4% |
ADR movement reflects cautious investor sentiment on soft global discretionary IT spending despite stable earnings.
Segment-wise Performance Analysis
BFSI
Largest contributor with 32% of revenue share
Growth moderated due to delayed decision-making in European markets
Retail
Recorded 10% YoY growth, driven by digital transformation and supply chain optimisation projects
Manufacturing
Steady growth with focus on Industry 4.0 and automation solutions
Communication & Others
Communication saw flat growth amid budget cuts by global telecom clients
Life Sciences & Healthcare showed resilience with ~12% growth
Management Commentary
CEO Salil Parekh said:
“We delivered a strong Q1 performance with robust large deal wins of $3.2 billion, reflecting client trust despite a cautious environment. Our GenAI and digital offerings continue to drive transformation programs globally.”
CFO Nilanjan Roy added:
“We maintained margin resilience through cost optimisation, pyramid rationalisation, and operational efficiencies.”
Infosys Share Price Movement Post Results
| Date | Infosys NSE Price (₹) | % Change |
|---|---|---|
| July 19, 2025 | 1,510 | – |
| July 20, 2025 | 1,525 | +1.0% |
The share price gained 1% post-results due to stable margins and confident management commentary despite global headwinds.
Expert Analysis: What Should Investors Do?
Positive Factors
- Strong large deal pipeline ($3.2 billion in Q1)
- Continued investments in AI and automation driving differentiation
- Improved attrition rate supporting delivery stability
- Reasonable valuation compared to TCS and HCL Tech
Risks
- Slower discretionary tech spending in the US and Europe
- Margin pressure due to wage hikes and competitive pricing
- Currency volatility affecting realisations
Recommendation
Analysts recommend a “Hold to Accumulate” rating with a long-term target of ₹1,700 as Infosys remains a fundamentally strong IT major with robust client relationships and digital capabilities.
Outlook for FY26 and Guidance Updates
Infosys maintained its FY26 guidance of:
Revenue Growth: 7-9% YoY in constant currency
Operating Margin: 20-22%
Management highlighted optimism around GenAI initiatives, cloud, cybersecurity, and automation to drive future growth despite near-term macro uncertainties.
FAQs
1. What was Infosys’ net profit in Q1 FY26?
Infosys reported a net profit of ₹6,921 crore, up 9% YoY.
2. How much revenue did Infosys earn in Q1 FY26?
Infosys recorded ₹38,494 crore revenue, an 8% increase YoY.
3. What is Infosys’ ADR price today?
As of July 20, 2025, Infosys ADR traded at $17.78, down 0.4% post-results.
4. What is Infosys’ revenue growth guidance for FY26?
Infosys maintained its 7-9% revenue growth guidance for FY26 in constant currency terms.
Helpful Resources
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Conclusion
Infosys delivered a stable Q1 FY26 performance with 9% growth in net profit and resilient margins, underlining its operational strength amid a challenging global IT environment. Investors can remain positive on Infosys for the medium to long term, tracking global client spending patterns and future deal wins for earnings acceleration.
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