Infosys employees will take home fatter pay packets this quarter, as the IT major has handed out 80% of the performance pay to most employees for the first quarter of fiscal 2026, after reporting stronger-than-expected growth. The announcement was made via an internal memo, according to a report by Moneycontrol.
The payout is tied to performance ratings across levels. At PL4, those rated outstanding will receive 89% of their eligible bonus, while those who met expectations will get 80%. Even employees in the 'needs attention' category have been awarded 80% at this level.
For PL5 employees, the bonus ranges between 78–87%, while for PL6, it falls between 75–85%, depending on performance. The lowest-rated employees in PL5 and PL6 will receive 78% and 75%, respectively. Bonus letters will be uploaded to employees' "e-dockets," the memo said.
The upbeat sentiment spilled over to Dalal Street. On Aug. 20, the Nifty IT index jumped 2.7%, its sharpest single-day gain since May 2025. Infosys led the pack, rising 4% to Rs 1,497, followed by Coforge and Mphasis, up 3.3% and 3.2%, respectively.
Other majors, including TCS, Persistent Systems, Tech Mahindra, Oracle Financial Services, Wipro, LTIMindtree, and HCL Technologies, also closed higher, gaining between 1.5–3%.
Analysts say the rally comes as weeks of selling pressure have brought valuations to more palatable levels, luring investors back into the sector even as the demand outlook remains subdued. Infosys, has fundamentally emerged at the top during Q1FY26 in terms of revenue growth and deal volumes.
The bottom line of India's second-largest IT services major reported a drop of 2% to Rs 6,921 crore in the June quarter compared to Rs 7,033 crore in the preceding March quarter of FY25. The topline rose 3.3% over previous quarter to Rs 42,279 crore. That compares with the Rs 41,724-crore consensus estimate of analysts tracked by Bloomberg.
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