Infosys posted a resilient performance in Q4 FY25 despite a sequential dip in revenue. The company’s revenue from operations declined 2% QoQ to ₹40,925 crore, compared to ₹41,764 crore in Q3 FY25. However, net profit attributable to owners rose 3.3% QoQ to ₹7,033 crore, reflecting disciplined cost control and operational efficiency. Infosys announced a conservative FY26 revenue growth guidance of 0%-3% in constant currency, which came in below market expectations—Kotak Institutional Equities and Ambit had anticipated a 1%-4% range, while JPMorgan projected 2%-5%, signaling a more cautious outlook from the IT major.
On a year-on-year basis, Infosys recorded a 4.8% revenue growth in constant currency terms and 7.9% in reported terms. Operating margin for the quarter came in at 21.0%, expanding 0.9% YoY, though slightly down by 0.3% QoQ. Free cash flow (FCF) remained strong at ₹7,737 crore, up 10% YoY, with a conversion rate of 109.9% of net profit. Basic EPS for the quarter stood at ₹16.98, down 11.8% YoY.
For the full year FY25, Infosys reported revenue of ₹162,990 crore, a 6.1% increase YoY, with operating margin expanding by 50 basis points to 21.1%. The company posted its highest-ever annual free cash flow of ₹34,549 crore, a 44.8% jump YoY. Net profit stood at ₹26,713 crore, up from ₹26,233 crore in FY24.
The Total Contract Value (TCV) of large deals for FY25 was $11.6 billion, with 56% being net new wins.
CEO & MD Salil Parekh emphasized the company’s focus on client-centricity and adaptability, saying, “Our performance has been robust in terms of revenues, expansion in operating margins and highest ever free cash generation.” CFO Jayesh Sanghrajka added, “FY25 operating margins expanded by 0.5% which reflects our relentless focus on identifying opportunities for efficiency and executing Project Maximus with discipline.”
FY26 Guidance
For FY26, Infosys expects:
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Revenue growth of 0%-3% in constant currency
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Operating margin between 20%-22%
This indicates a cautious but stable outlook amid evolving macroeconomic conditions.
The Board has declared a final dividend of ₹22 per share, taking the total FY25 dividend payout to a 13.2% increase over the previous year.
