- Infosys Q1 FY27 net profit fell 8.6% sequentially to Rs 7,769 crore, meeting estimates
- Revenue rose 3.9% QoQ to Rs 48,211 crore, in line with analyst expectations
- EBIT increased 4.3% to Rs 10,163 crore, with margin expanding to 21.08%
Infosys Ltd.'s net profit for the first quarter of fiscal year 2027 fell 8.6% sequentially, according to an exchange filing on Friday, meeting analysts' expectations.
The IT behemoth posted a consolidated bottom-line of Rs 7,769 crore, compared to Rs 8,501 crore in the fourth quarter of the previous fiscal. Dalal Street analysts estimated a profit of Rs 7,774 crore.
Revenue rose 3.9% to Rs 48,211 crore from Rs 46,402 crore in the preceding quarter, in-line with estimates of Rs 48,222 crore. Earnings before interest and taxes rose 4.3% to Rs 10,163 crore from Rs 9,743 crore and EBIT margin expanded 9 basis points to 21.08% from 20.99%.
Separately, the company has appointed Ashiss Kumar Dash as CEO-designate till March 31, 2027. He will take over as CEO from April onwards.
The management has revised its FY27 revenue guidance to between 1.5% and 3% from 1.5-3.5% in the preceding quarter, However, margin guidance was retained at 20%-22%.
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Infosys posted a 1% quarter-on-quarter constant currency revenue growth in the June quarter, with CEO Salil Parekh saying the company continued to see strong momentum in artificial intelligence-led work despite an uncertain macroeconomic environment. AI services contributed 8.2% of the company's Q1 revenue, while AI-related revenue continued to grow at a double-digit sequential pace, he said.
Parekh added that clients were increasingly focused on optimising token costs, reflecting a greater emphasis on improving the efficiency of AI deployments. He said Infosys' AI services business had delivered double-digit growth over several consecutive quarters, underlining sustained demand for the company's AI capabilities.
While acknowledging that the macroeconomic environment remained uncertain, Parekh said Infosys expected conditions to improve, though not to the extent previously anticipated. The company revised its FY27 revenue growth guidance to 1.5%–3%, while reporting an operating margin of 21.1% for the quarter.
Commenting on the leadership transition, Parekh said Infosys' AI strategy was well established, adding that CEO-designate Ashiss Kumar Dash had been an integral part of shaping and executing the company's AI roadmap.
Additionally, Chief Financial Officer Jayesh Sanghrajka said Infosys would implement annual salary hikes in two phases. Most employees will receive their compensation increases in October, while senior employees will receive theirs in January.
Infosys Q1 FY27 (Consolidated, QoQ)
- Net profit down 8.6% to Rs 7,769 crore from Rs 8,501 crore (in line with estimate of Rs 7,774 crore)
- Revenue up 3.9% to Rs 48,211 crore from Rs 46,402 crore (versus estimate of Rs 48,222 crore)
- Ebit up 4.3% to Rs 10,163 crore from Rs 9,743 crore (above estimate of Rs 10,124 crore)
- Margin up 9 basis points to 21.08% from 20.99% (ahead of estimate of 20.99%)
Infosys Share Price
Shares of Infosys closed marginally lower at Rs 1,051.80 apiece on the BSE ahead of the result announcement. The stock has fallen over 35% year-to-date and 33.5% in the last 12 months.
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