Shares of Infosys Ltd rose 2.5% to ₹1,453.90 on April 21 after the company posted its Q4 FY25 earnings. Despite a sequential dip in revenue, the stock rallied on improved profitability, robust free cash flow, and steady margin guidance for FY26. The day’s range was between ₹1,410.00 and ₹1,462.70, with the company’s market cap standing at ₹6.03 lakh crore.
Infosys reported a net profit of ₹7,033 crore for Q4, marking a 3.3% QoQ increase, even as revenue from operations declined 2% sequentially to ₹40,925 crore. On a YoY basis, revenue grew 4.8% in constant currency terms, while operating margin expanded by 0.9 percentage points to 21.0%. Total income for the quarter stood at ₹42,115 crore, and profit before tax came in at ₹9,663 crore.
The company’s FY25 performance was marked by a 6.1% YoY revenue growth to ₹162,990 crore, and net profit of ₹26,713 crore. Notably, Infosys achieved its highest-ever free cash flow of ₹34,549 crore, registering a YoY growth of 44.8%. The final dividend of ₹22 per share takes the total FY25 payout up by 13.2% over the previous year.
The FY26 guidance remained conservative, with the company projecting constant currency revenue growth in the range of 0-3% and an operating margin of 20-22%. Analysts had expected a slightly higher guidance range of 1-4%.
CEO Salil Parekh cited a strong foundation in AI, digital, and automation as key drivers, while CFO Jayesh Sanghrajka credited Project Maximus for the margin expansion.
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