Infosys Ltd. will begin rolling out annual salary hikes from October, with the majority of employees set to receive compensation increases then, while senior employees will have to wait until January, the company's management said during its first-quarter earnings conference call on Thursday.
"Most of the employees" will receive salary increases in October, Chief Financial Officer Jayesh Sanghrajka said during the post-results interaction. Senior employees will get their compensation revisions in January, he added.
The Bengaluru-based IT major said the compensation revision exercise will be implemented in two phases, October and January.
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The update comes alongside Infosys' first-quarter earnings, where the company retained its operating margin guidance of 20%-22% for FY27 while revising its constant currency revenue growth guidance to 1.5%-3%.
Chief Executive Officer and Managing Director Salil Parekh said the macroeconomic environment continues to remain uncertain, though the company's artificial intelligence business is witnessing strong momentum.
"AI services revenue was at 8.2% of overall revenue in the first quarter," Parekh said, adding that AI-related revenue has been growing at a double-digit sequential pace. He also noted that clients are increasingly optimising token costs, which has become a critical focus area.
On business trends, management said the financial services vertical is expected to grow faster than the company average, while retail and communications continue to face demand challenges. The company also highlighted strong traction in its Global Capability Centre (GCC) business and healthy momentum in total contract value (TCV) conversion.
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Infosys also announced the appointment of Ashiss Kumar Dash as CEO Designate for a five-year term, subject to shareholder approval.
For the June quarter, Infosys reported a consolidated net profit of Rs 7,769 crore, down 8.6% sequentially, while revenue rose 3.9% quarter-on-quarter to Rs 48,211 crore. Operating margin came in at 21.1%.
The company ended the quarter with a headcount of 3.28 lakh, down by 532 employees, while last twelve months (LTM) attrition stood at 13%.
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