Infosys Ltd. reported a largely flat year-on-year net profit for the September quarter, while revenue registered modest growth, as the IT services major also revised its FY27 revenue growth guidance to 1-2%.
The company's consolidated net profit stood at Rs 7,823 crore in the second quarter, compared with Rs 7,769 crore in the preceding quarter, marking a 0.7% sequential increase. Revenue rose 2.1% quarter-on-quarter to Rs 49,244 crore from Rs 48,211 crore in the June quarter.
On a sequential basis, Infosys' operating performance improved marginally. Earnings before interest and tax (EBIT) increased 1.6% to Rs 10,330 crore from Rs 10,163 crore in the previous quarter. However, the EBIT margin edged down to 21% from 21.1% in the June quarter.
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The company's net profit came in below market estimates of Rs 7,905 crore. Revenue, however, marginally exceeded the estimate of Rs 49,135 crore.
Operating profit increased 10.4% year-on-year to Rs 10,330 crore, while the operating margin remained unchanged at 21%. Earnings per share rose 8.7% year-on-year in rupee terms, according to the company.
Infosys said its large-deal total contract value stood at $5.2 billion during the quarter, with 62% of the value coming from net-new deals. The company also reported a 29% sequential increase in AI revenues, highlighting its focus on expanding artificial intelligence-led services.
However, growth remained uneven across business segments. Life Sciences recorded 32.5% year-on-year revenue growth in constant-currency terms, while energy, utilities, resources and services grew 7.3%. Communication services expanded 4.1% and financial services grew 2.1%.
Retail revenue declined 7.7% in constant-currency terms, while the high-tech segment contracted 17.3%. Manufacturing revenue fell 0.7%.
Geographically, Europe grew 4.6% year-on-year in constant-currency terms, while North America, Infosys' largest market, declined 1.5%. Revenue from India fell 3.5%, while the rest of the world grew 10.9%.
The company revised its revenue growth guidance for FY27 to 1%-2% in constant-currency terms, while retaining its operating margin guidance of 20%-22%. Revenue growth for the first half of the financial year stood at 1.9% in constant-currency terms, with an operating margin of 21%.
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The board declared an interim dividend of Rs 26 per equity share, compared with Rs 23 a share in the year-ago period. November 3, 2026, has been fixed as the record date, while the dividend payment is scheduled for November 11.
The September-quarter results reflect steady margins and a healthy deal pipeline, but the revised full-year outlook and weakness in some major business segments underline the challenges facing the IT services sector.
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