Infosys posted a resilient performance in Q4 FY25 despite a slight 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, up from ₹6,806 crore in the previous quarter, reflecting effective cost management and operational efficiency but missed estimates.
According to the average estimates from seven brokerages, Infosys’ revenue from operations was expected to rise 10% YoY. However, net profit forecasts remained uncertain, with projections ranging from a 10% increase to a 19% YoY decline, largely due to cost-related pressures and the impact of wage hikes.
Infosys reported a steady performance in Q4 FY25 with revenue rising 4.8% year-on-year (YoY) in constant currency terms, though it declined 3.5% quarter-on-quarter (QoQ). Reported revenue stood at ₹40,925 crore, registering a 7.9% YoY growth. The company’s operating margin came in at 21.0%, marking a 0.9% YoY expansion despite a marginal 0.3% QoQ dip.
Free cash flow (FCF) during the quarter was robust at ₹7,737 crore, up 10% YoY, with a conversion rate of 109.9% of net profit. Basic earnings per share (EPS) stood at ₹16.98, down 11.8% YoY.
For the full fiscal year FY25, Infosys delivered $19,277 million in revenue, translating to a 4.2% YoY growth in constant currency. The operating margin for the year stood at 21.1%, expanding 50 basis points YoY. Notably, the company posted its highest-ever annual free cash flow at $4.1 billion, a 41.8% YoY increase.
The company also reported large deal total contract value (TCV) of $11.6 billion in FY25, with 56% being net new wins.
Commenting on the results, CEO & MD Salil Parekh highlighted the company’s resilience and focus on client-centricity. CFO Jayesh Sanghrajka added that the margin expansion was driven by the successful execution of Project Maximus, aimed at improving operational efficiency.
Infosys has provided FY26 guidance of 0%-3% revenue growth in constant currency and an operating margin range of 20%-22%.
The Board has proposed a final dividend of ₹22 per share, taking the total FY25 dividend payout to a 13.2% increase over last year.
“We have built a resilient organization with sharp focus on client-centricity and responsiveness to the market, thanks to the trust of our clients and dedication of our employees. Our performance for the year has been robust in terms of revenues, expansion in operating margins and highest ever free cash generation”, said Salil Parekh, CEO and MD. “Our depth in AI, cloud and digital and strength in cost efficiency, automation, and consolidation position us well for the needs of our clients”, he added.
“FY25 operating margins expanded by 0.5% which reflects our relentless focus on identifying opportunities for efficiency and executing Project Maximus with discipline, after navigating through multiple headwinds in a challenging macro environment. We delivered the highest ever free cash flows in the history of the company in FY25,” said Jayesh Sanghrajka, CFO. The Board has proposed a final dividend of `22, which along with the interim dividend, is an increase of 13.2% over last year.” he added.
The operating margin stood at 21.0%, improving by 0.9% YoY, though slightly down by 0.3% from the previous quarter. Total income for the quarter was ₹42,115 crore, and profit before tax came in at ₹9,663 crore.
For the full fiscal year FY25, Infosys reported revenue of ₹162,990 crore, a 6.1% increase YoY, and net profit of ₹26,713 crore, up from ₹26,233 crore in FY24. The company also recorded its highest-ever free cash flow of ₹34,549 crore, a YoY growth of 44.8%.
A final dividend of ₹22 per share has been declared, taking the total dividend for the year to a 13.2% increase over last year.
