Infosys Q2 preview: Revenue to rise on deal wins; BFSI vertical resilient

Revenue growth for Infosys is likely to be led by the recent deal ramp-ups and inorganic contribution from its recent acquisitions, analysts said

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Information technology major (IT) Infosys Ltd. is set to report its September quarter earnings, with analysts expecting a sequential uptick in the bottom line and top line, driven by deal ramp-up and inorganic contribution.  

 

The IT bellwether will report its earnings for the second quarter ended September on Thursday, October 16.

 

Infosys’ revenue is expected to come in at ₹44,068.63 crore, marking a 4.23 per cent quarter-on-quarter (Q-o-Q) increase, according to consensus estimates tracked by Business Standard. On a year-on-year (Y-o-Y) basis, the company’s top line is projected to grow by 7.52 per cent.

 

The revenue growth is likely to be led by the recent deal ramp-ups and inorganic contribution from its recent acquisitions, analysts said. 

 

Meanwhile, the IT major is expected to post a 4.04 per cent increase in net profit for the September quarter sequentially to ₹7,200.22 crore. On a Y-o-Y basis, the net profit is expected to grow at an average of 10.67 per cent. 

 

In the June quarter, the net profit of Bengaluru-based company came in at ₹6,921 crore, a sequential decline of 1.6 per cent. The top line grew 3.3 per cent on Q-o-Q to ₹42,279 crore. Both the numbers beat Bloomberg's estimates.   ALSO READ | Tech Mahindra Q2 preview: IT major to see profit uptick led by margin boost

Here's how analysts of various brokerages expect Infosys to fare in Q2:

Kotak Securities:  The brokerage forecasts revenue growth of 1.8 per cent Q-o-Q, driven by higher billing days and continued strength in the financial services vertical. Tailwinds from rupee depreciation are likely to be offset by the normalisation of post-sales client support provisions, compared with a reversal benefit of 40 basis points in the June 2025 quarter.

 

It expects the Ebit margin to remain stable both Y-o-Y and sequentially. Kotak Securities estimates large-deal total contract value (TCV) at $3 billion, implying around 22 per cent Y-o-Y growth but a sequential decline. It believes Infosys will raise its FY26 revenue growth guidance to 2-3 per cent from 1-3 per cent earlier.

 

Motilal Oswal:  The brokerage expects Infosys to report 2.4 per cent Q-o-Q revenue growth in CC terms, supported by recent deal ramp-ups and a 30 basis points inorganic contribution from its latest acquisition. Growth is expected to remain first-half heavy, as in prior years, it said. 

 

The brokerage expects the operating margin to improve by 40 basis points, aided by better realisation, the absence of wage hikes, and lower third-party expenses. It expects Infosys to maintain its revenue growth guidance of 1-3 per cent Y-o-Y in constant currency.  ALSO READ | HCLTech Q2 result: Net profit flat at ₹4,235 cr, dividend declared 

Motilal Oswal notes that the US banking, financial services and insurance (BFSI) segment should remain resilient, while retail continues to face softness due to tariff uncertainty. The auto segment is likely to stay weak, but strength in core manufacturing and industrial verticals from prior deal wins could partially offset this weakness.

 

Nuvama Institutional Equities:  Infosys' revenue is expected to grow 1.8 per cent sequentially in CC and 2.1 per cent in US dollar terms, with a 10-15 basis points contribution from acquisitions. The brokerage expects the Ebit margin to expand by around 20 basis points sequentially, supported by operating leverage and currency tailwinds.

 

Nuvama also expects Infosys to maintain its FY26 revenue growth guidance of 1-3 per cent Y-o-Y in CC (including 0.4 per cent inorganic) and margin guidance of 20-22 per cent.