Infosys Q2 results: Net profit jumps 13.2% to ₹7,364 cr, revenue up 8.6%

Infosys lifts base sales outlook as IT spending rises

Infosys raised the lower end of its annual revenue guidance and reported a 13.2 per cent year-on-year (Y-o-Y) rise in second-quarter net profit to ₹7,364 crore, buoyed by a robust large-deal pipeline and broad-based growth across verticals despite an uncertain macroeconomic backdrop. 

India’s second-largest information technology (IT) services company now expects revenue to grow between 2 and 3 per cent in constant currency for the financial year ending March 2026, compared with 1 to 3 per cent previously. The revision signals growing confidence in the company’s deal momentum even as demand remains uneven across key markets. 

Revenue for the three months to September rose 8.6 per cent Y-o-Y to ₹44,490 crore, led by financial services and manufacturing. Both profit and revenue surpassed Bloomberg consensus estimates, marking two consecutive quarters of steady growth for the Bengaluru-based company. 

On a constant currency basis, excluding the impact of exchange-rate movements, Infosys grew 3.7 per cent, outperforming larger rival Tata Consultancy Services (TCS) but trailing HCLTech, which posted the strongest growth among the top five Indian IT firms at 5.8 per cent. Wipro’s revenue fell 2.6 per cent, while LTIMindtree grew 4.4 per cent. 

“The environment continues to remain uncertain,” said Salil Parekh, chief executive officer and managing director of Infosys. “While the second half of the year is usually slower than the first, we see good traction in large deals and have thus increased the guidance. We are more confident about the lower end of our outlook.”

 

While the unchanged upper end indicates stability, the lower end still suggests the worsening of the global environment, the company clarified.

 

Parekh added that Infosys had delivered two consecutive quarters of solid growth, supported by large contract wins such as the £1.2 billion (₹14,000 crore) deal with the UK’s National Health Service (NHS) announced earlier this week. The 15-year contract is expected to contribute about £120 million annually and underscores the company’s strength in cost optimisation, automation and AI-led transformation programmes.

 

The total contract value of large deals signed in the quarter reached $3.1 billion, up 29 per cent year-on-year. Financial services and manufacturing grew 5.4 per cent and 6.6 per cent respectively, while retail declined 2.3 per cent.

 

“Modernisation of legacy technology platforms is a big opportunity due to AI,” Parekh said. “In the past, you could do it without AI but now with it, the time horizon is less and the return on investment (RoI) for clients in the programme is better.”

 

North America and Europe, Infosys’s two largest markets, rose 2 per cent and 6.8 per cent respectively. Europe remained a relative bright spot as firms there ramped up spending on transformation and cost-efficiency projects.

 

Operating margin stood at 21 per cent, the midpoint of the company’s 20–22 per cent guidance range. “We continue to make strategic investments to future-proof the business with a tight focus on execution, amidst high uncertainty,” said Jayesh Sanghrajka, chief financial officer.