Shares of Infosys Ltd closed 1.09% higher at ₹1,428.50 on the NSE on Wednesday, ahead of the company’s highly anticipated Q4 FY25 results due later today. The stock traded in the range of ₹1,378.30 to ₹1,429.80 during the session and currently holds a market capitalization of ₹5.92 trillion.
Investor sentiment remained cautiously optimistic even as analysts projected a subdued quarter for the IT major amid margin pressures and seasonal softness.
Revenue and profit expectations:
According to the average estimates from seven brokerages, Infosys’ revenue from operations is expected to rise 10% YoY. However, net profit forecasts remain 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.
Brokerage previews:
- BNP Paribas Exane Research expects a 0.5% QoQ decline in constant currency (CC) revenue and a 0.9% drop in USD terms, citing seasonal weakness. EBIT margin is expected to contract 79 basis points to 20.5%, factoring in wage hikes for junior staff and a $17.5 million hit from the McCamish lawsuit settlement, partially offset by favorable forex.
- Kotak Institutional Equities anticipates a 2.3% sequential drop in revenue, with EBIT margin seen declining by 60 basis points, again due to wage-related expenses. However, rupee depreciation may offer limited margin support.
- Nuvama Institutional Equities forecasts a 1% revenue decline in CC terms and 1.5% in USD terms, in line with Infosys’ guidance. EBIT margin is expected to compress by 100 basis points. For FY26, it expects revenue growth in the 2–5% range and margin guidance to remain stable at 20–22%.
As Infosys prepares to release its numbers, the market remains divided on the outlook, reflecting broader uncertainties in the IT sector.
