Infy raises growth outlook for FY26
Q2 net profit jumps 13% to Rs7,364 cr; Announces Rs23 dividend; Margins held firm; Deal wins remain strong
Infosys CEO Salil Parekh and CFO Jayesh Sanghrajka announcing company’s Q2 results in Bengaluru on Thursday
Bengaluru: Infosys posted largely inline second quarter performance with sound deal pipeline. The company raised lower end of its revenue guidance for the current financial year. The Bengaluru-headquartered company posted a net profit of Rs7,364 crore, which was an increase of 13.2 per cent over the same period of previous fiscal year.
Consolidated revenue grew 8.6 percent year-on-year to Rs44,490 crore. On dollar term, revenue was at $5.07 billion, an increase of 2.2 per cent on constant currency basis.
Deal pipeline of the company remained robust. Its large deal TCV (total contract value) was at $3.1 billion out of which 67 per cent was net new.
“We have now delivered two consecutive quarters of strong growth, demonstrating our unique market positioning and client relevance. Strong deal wins, with 67 per cent net new in Q2, reflect our deep understanding of clients’ priorities to deliver value from AI in this environment”, said Salil Parekh, CEO of Infosys.
With increased demand, Infosys raised the lower end of its revenue guidance. The company now expects its revenue to grow by 2-3 per cent in constant currency in FY26. The IT firm maintains its operating margin guidance of 20-22 per cent for the ongoing fiscal year.
Operating margin of the company was at 21 per cent, a decline of 20 basis points from the previous quarter.
