Infosys net profit up 8.7 per cent to Rs 6,921 crore in Q1 of FY26

The IT company said it is on track to hire 20,000 freshers this fiscal year

Bengaluru: Infosys Ltd on Wednesday reported an 8.7 per cent rise in its June quarter net profit and narrowed its full-year revenue forecast after stronger-than-expected earnings growth.

Consolidated net profit stood at Rs 6,921 crore in April-June — the first quarter of 2025-26 fiscal year — compared with Rs 6,368 crore earnings in the same period a year ago, according to a company statement.

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Revenue from operations at Rs 42,279 crore was higher 7.53 per cent year-on-year and 3.3 per cent quarter-on-quarter, on the back of strong performance in AI and deal wins.

Net profit, howeve,r fell 1.5 per cent sequentially when compared with the January-March quarter.

“Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 3,00,000 employees. Our large deal wins of USD 3.8 billion reflect our distinct competitive positioning and deep client relationships,” Infosys CEO and MD Salil Parekh said.

Briefing media at the Q1 earnings call, Parekh noted that the start to financial year had been strong.
“The main drivers of our growth were leadership in enterprise AI, and a continued success in clients selecting us for consolidations. We are seeing good demand for AI agents,” he said.

Enthused by its performance in the June quarter, the company has raised the lower-end of its full-year constant currency revenue growth guidance to 1–3 per cent (it was earlier 0-3 per cent), with margin guidance retained at 20–22 per cent.

Total headcount rose marginally by 210 employees during the quarter, bringing the workforce to 3,23,788 level — an increase of 2.6 per cent year-on-year. The company said it is on track to hire 20,000 freshers this fiscal year, as announced earlier.

Financial services remained the largest sector, contributing about 27.9 per cent of total revenue in Q1 FY26, followed by manufacturing at 16.1 per cent and retail at 13.4 per cent.

Geographically, North America accounted for 56.5 per cent of quarterly revenue, down from 58.9 per cent in the corresponding period of the previous fiscal. Europe increased its share to 31.5 per cent, up from 28.4 per cent in the Q1 FY25.

Infosys CFO Jayesh Sanghrajka said Europe has been a strong footing for the company for the past many quarters.

“That’s on the back of the investment that we made a few years back in Europe. We had identified Europe as a geography to invest in and all of that is working well across sectors….but still, the US remains the largest geography for us,” Sanghrajka said.