Infosys Q4 Results Preview: Profit And Margins Likely To Decline, Guidance Expected To Be Muted

IT services major Infosys Ltd.'s net profit is likely to decline in the fourth quarter of fiscal 2025, amid weak demand environment. Revenue for the company is expected to rise marginally at 1% sequentially to Rs 42,126 crore for the quarter ended March 31, 2025, according to a consensus estimate of analysts tracked by Bloomberg. Net profit may decline 2% to Rs 6,697 crore.

• Profit seen 2% lower at Rs 6,697 crore versus Rs 6,806 crore.

• Revenue seen 1% higher at Rs 42,126 crore versus Rs 41,764 crore.

• EBIT seen 2% lower at Rs 8,696 crore versus Rs 8,912 crore.

• Margin at 20.6% versus 21.33%.

Nuvama forecasts revenue to dip 1.0% QoQ in constant currency terms and 1.5% in dollar terms sequentially, in-line with the implied guided range. “EBIT margin is likely to decline 100 basis points QoQ, primarily due to wage hike. We estimate Infosys shall announce FY26 revenue growth guidance to 2–5% in constant currency terms on a year-on-year basis and margins guidance to remain at 20-22% for FY26,” the brokerage noted.

Deven Choksey expects sequential revenue growth of 1.4%, supported by momentum in the financial services and retail segments. However, a decline in third-party revenues and the impact of furloughs are likely to weigh on overall performance in Q4. EBIT margins are projected to diminish by 80-100bps QoQ, due to wage hike announced partially offset by favourable pricing and operational efficiencies from Project Maximus, it said.

Large deal Total Contract Value is expected to be stable around $2.5-3 billion, according to Citi Research.

Kotak Institutional Equities expects sequential revenue decline of 2.3% due to lower revenues from sale of third-party items for service delivery and seasonal weakness in demand. “March quarter has been Achilles’ heel for Infosys. We forecast 60 bps sequential decline in EBIT margin due to wage revision for junior employees, offset by rupee depreciation. We believe Infosys will guide for 1-4% c/c revenue growth for FY2026. The muted guidance is on account of deteriorating macro courtesy of tariff wars and unlike FY2025, Infosys does not have mega-deals contributing to FY2026,” the brokerage noted.

• Tariff impact on business demand.

• Deal wins TCV trends.

• Guidance for FY26.

• Margin levers in FY26.