Key Takeaways:
- Profit and Revenue Surge: Net profit rose 21% year-over-year to ₹8,501 crore, while revenue climbed 13.4% to reach ₹46,402 crore.
- Shareholder Returns: The board declared a final dividend of ₹25 per share, bringing the total capital returned to shareholders this year to over ₹37,500 crore.
- AI Momentum: CEO Salil Parekh cited a record $14.9 billion in large deal wins for the year, fueled by high demand for generative AI and digital transformation.
Infosys Q4 reports a 21% year-over-year rise in net profit to ₹8,501 crore, driven by steady deal wins and AI-led growth, while announcing a final dividend of ₹25 per share.
Infosys on Thursday posted consolidated revenue of ₹46,402 crore for the March quarter, up 13.4% from a year earlier, with profit rising 27.75% sequentially. The company also issued a modest growth outlook for fiscal year 2027 amid global macroeconomic uncertainty.
Profit Growth Driven by Deals and AI Strategy
The Bengaluru-based IT services firm said its performance reflects resilience in a challenging environment, supported by strong, large deal wins totaling $14.9 billion during the fiscal year.
Chief Executive Officer Salil Parekh said the company’s artificial intelligence strategy is gaining traction across industries. “We delivered a resilient performance in FY26 with growth of 3.1%… reflecting the robustness of our enterprise AI value proposition and market share gains,” Parekh said.
Infosys Q4 review highlighted multiple global collaborations, including partnerships with companies such as ExxonMobil, Crocs, and Intel, aimed at advancing AI adoption, automation, and digital transformation.
Basic earnings per share for the quarter stood at ₹21.01, marking a 23.8% increase from a year earlier.
Dividend Announcement and Financial Discipline
The company’s board recommended a final dividend of ₹25 per equity share for the financial year ended March 31, 2026. The record date is set for June 10, and the payout is scheduled for June 25.
Chief Financial Officer Jayesh Sanghrajka said the company maintained strong margins and cash flow through disciplined execution. “FY26 was a year of disciplined execution and financial resilience… with healthy free cash flow of $3.7 billion,” he said.
Sanghrajka added that cost optimization initiatives under Project Maximus helped fund investments in talent, artificial intelligence, and sales capabilities. The company returned more than ₹37,500 crore to shareholders during the fiscal year through dividends and buybacks.
Operating margins remained strong at around 21%, aligning with the company’s long-term profitability goals.
FY27 Outlook Remains Cautious
Infosys Q4 projected revenue growth of 1.5% to 3.5% in constant currency for FY27, signaling cautious optimism as global demand remains uneven. The company expects operating margins in the range of 20% to 22%.
The guidance reflects ongoing macroeconomic challenges, including cautious client spending and slower decision-making cycles in key markets.
Despite strong quarterly results, Infosys shares closed about 2% lower at ₹1,231.80 on the National Stock Exchange ahead of the earnings announcement, indicating investor concerns over future growth prospects.
Market analysts had earlier expected a more modest profit increase, making the reported figures stronger than anticipated. However, the subdued outlook tempered investor sentiment.
Infosys said it will continue to focus on large transformation deals and scale AI-driven solutions to sustain growth momentum.
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