Infosys cuts FY27 revenue growth forecast to 1–2% as Q2 profit rises 6.2%
Infosys reported a 6.2 per cent rise in September-quarter profit but lowered its full-year revenue growth guidance to 1–2 per cent in constant currency.
The Global Sun Desk ·
Infosys reported a consolidated net profit of Rs 7,823 crore for the quarter ended 30 September, a 6.2 per cent increase on the Rs 7,364 crore earned in the same quarter last year, and trimmed its revenue growth forecast for the financial year. The company announced the results on Friday, 23 October.
Revenue from operations was Rs 49,244 crore, up 10.7 per cent from a year ago and 2.1 per cent from the June quarter's Rs 48,211 crore. Profit was only 0.7 per cent higher than the Rs 7,769 crore reported in the first quarter. For the first half of the year, revenue was Rs 97,454 crore, up 12.3 per cent, and net profit was Rs 15,592 crore, up 9.1 per cent.
Guidance lowered
Infosys now expects revenue to grow by 1 to 2 per cent in constant-currency terms in 2026–27, down from its earlier range of 1.5 to 3 per cent. Its operating margin guidance of 20 to 22 per cent was kept. Free Press Journal reported that operating profit of Rs 10,330 crore, up 10.4 per cent, was below market expectations, and that the operating margin of 21 per cent was 10 basis points lower than in the previous quarter.
Growth in the quarter came from a pick-up in demand from energy and utility clients and from higher spending on AI services, according to the Morung Express report.
Deals, AI and people
The company signed large deals with a total contract value of US$5.2 billion, of which 62 per cent was net new business. "We had strong large deals of $5.2 billion, including a mega deal of over $2 billion," said Salil Parekh, Infosys's chief executive and managing director.
Revenue from AI services rose to 10.5 per cent of the total, from 8.2 per cent in the June quarter, and grew 29 per cent from the previous quarter. Parekh said enterprises were moving towards adopting AI at scale.
Infosys had 332,542 employees on 30 September, up from 328,062 three months earlier. Voluntary attrition over a trailing twelve months fell to 12.7 per cent, compared with 13 per cent in the first quarter and 14.3 per cent a year earlier. Women accounted for 39.8 per cent of staff.
The board announced an interim payout of Rs 26 per share. The record date is 3 November, and the money is due to reach shareholders on 11 November.
Infosys shares closed unchanged at Rs 1,154.50 on the BSE on Friday.