Infosys delivered a strong set of Q4 FY26 results, with consolidated net profit surging 20.90% year-on-year to ₹8,509 crore from ₹7,038 crore, revenue growing 13.38% to ₹46,402 crore from ₹40,925 crore, and EBITDA expanding 13.09% to ₹11,167 crore — across-the-board double-digit growth that reaffirms India’s second-largest IT services company’s recovery trajectory after a period of demand softness that weighed on the sector through FY24 and early FY25.
The quarter also produces a striking sequential PAT jump of 27.65% — partly explained by the ₹1,289 crore exceptional loss that Q3 FY26 carried, which is absent in Q4, but also reflecting genuine underlying business improvement that makes this one of Infosys’s stronger quarterly performances in recent memory.
Q4 FY26 Key Financials
Revenue of ₹46,402 crore was up 13.38% year-on-year and 2.03% sequentially — consistent, compounding growth that signals the demand environment for large-deal execution and enterprise technology transformation has stabilised and is recovering. At ₹46,402 crore, Infosys is operating at an annualised revenue run rate approaching ₹1.85 lakh crore — a scale that makes even modest percentage growth impressive in absolute terms.
EBITDA of ₹11,167 crore was up 13.09% year-on-year and 5.01% sequentially. EBITDA margin of 24.07% is essentially flat year-on-year from 24.13% — a 6 basis point compression — but up 69 basis points sequentially from 23.38% in Q3 FY26. The near-perfect margin stability on a 13.38% revenue growth year demonstrates Infosys’s cost discipline and pyramid management — the company has grown its top line significantly without allowing cost to expand at the same pace, keeping margins in the 24% band it has consistently targeted.
PBT excluding exceptional items was ₹10,797 crore, up 11.74% year-on-year and 2.65% sequentially — healthy underlying profitability growth that reflects both the revenue and margin performance.
PAT of ₹8,509 crore and PAT after minority interest of ₹8,501 crore both grew approximately 20.87-20.90% year-on-year — a rate of profit growth that outpaced revenue growth, reflecting the operating leverage and lower exceptional charge burden in Q4 compared to Q3.
The Exceptional Item Effect — Cleaning Up From Q3
Q3 FY26 carried an exceptional loss of ₹1,289 crore — a significant one-time charge that suppressed the Q3 PAT figure. Q4 FY26 carries no exceptional items. This creates a mechanical Q3-to-Q4 sequential PAT jump that accounts for a meaningful portion of the 27.65% sequential PAT improvement. Stripping out the ₹1,289 crore Q3 exceptional loss and tax-adjusting it, the underlying sequential PAT improvement is more moderate — but the 20.90% year-on-year growth rate, which is not affected by the exceptional item in the comparator quarter, is the cleaner and more meaningful metric for assessing business performance.
What 13.38% Revenue Growth Means for Indian IT
Infosys reporting 13.38% constant currency or rupee revenue growth in Q4 FY26 is a statement about where the enterprise technology demand cycle is. The slowdown fears of FY24 — when discretionary technology spending was being cut across banking, financial services, insurance and retail — have given way to a recovery driven by large deal wins in cloud migration, AI implementation, core systems modernisation and cost transformation programmes.
For Indian IT as a sector, an Infosys Q4 at 13.38% revenue growth sets a strong benchmark. TCS, which reported earlier in the season, and Wipro, which reported weaker CC growth and negative FY27 guidance, provide the contrast that makes Infosys’s performance stand out. The divergence within Indian IT — between companies winning large transformation deals and those struggling with discretionary spend and client-specific headwinds — is the defining theme of the Q4 FY26 results season.
Margin Stability — The 24% Band Holds
The 24.07% EBITDA margin is the fourth consecutive quarter in which Infosys has maintained margins in the 23.38% to 24.13% range. This consistency — through a period of wage inflation, visa cost pressures, subcontracting rationalisation and currency fluctuations — reflects deliberate and effective margin management. The company has used levers including pyramid optimisation, onsite-offshore mix management, utilisation improvement and subcontractor reduction to offset headwinds and keep the 24% EBITDA band intact.
For FY27, the margin question is whether Infosys can sustain the 24% band while absorbing the annual wage cycle, investing in AI capabilities and maintaining competitive pricing to win large deals. Management’s guidance on FY27 margins will be among the most closely watched elements of the post-results communication.
The Sequential PAT Jump in Context
PAT up 27.65% sequentially from ₹6,665 crore in Q3 FY26 to ₹8,509 crore in Q4 FY26 is the headline sequential number. Adjusted for the ₹1,289 crore Q3 exceptional loss, the underlying sequential improvement is approximately ₹6-7% — still solid but not the transformational jump the unadjusted number suggests. Both readings are valid for different purposes: the adjusted sequential tells you about underlying business momentum, the unadjusted sequential tells you about reported earnings quality improvement from Q3 to Q4.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers are advised to consult a SEBI-registered financial advisor before making investment decisions.