Infosys Q3 preview: Revenue may rise 2% QoQ; Project Maximus to aid margins

Infosys Q3 results preview: Brokerages tracked by Business Standard estimate Infosys to report a net profit on average at ₹7,315.83 crore as compared to ₹6,822 crore Y-o-Y, up 7 per cent

Infosys Q3 results preview: Information technology major (IT) Infosys Ltd. is set to report its December quarter earnings on Wednesday, January 14, 2026. 

 

Brokerages tracked by Business Standard estimate Infosys to report a net profit on average at ₹7,315.83 crore as compared to ₹6,822 crore year-on-year (Y-o-Y), up 7 per cent. On the quarter-on-quarter (Q-o-Q) basis, the profit is anticipated to decline 0.64 per cent from ₹7,364 crore in Q2FY26.

 

The company's revenue for the quarter under review is expected to rise 8  per cent in Q3FY26, on average, to ₹45,206.68 crore as compared to ₹41,764 crore a year ago. Sequentially, the revenue is poised to climb 2 per cent from ₹44,490 crore in Q2FY26, led by the ramp-up of deals, while furloughs and lower working days will keep the pace modest.

 

Analysts and investors will keep an eye out for commentary on the deal pipeline, margins, utilisation, and client spending in the wake of rising macro volatility in the United States (US). 

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Here's how Infosys is expected to fare in Q3FY26:

Nomura: Analysts expect revenue to decline 0.5 per cent Q-o-Q in CC in a seasonally weak quarter. On a Y-o-Y basis, pass-through revenues may come lower.  Discretionary demand in financial services should remain improved modestly. 

 

Earnings before interest and tax (Ebit) margin is likely to improve by 40 basis points (bps) Q-o-Q to 21.4 per cent, driven by currency. Infosys is anticipated to tighten its guidance to 2.5-3 per cent Y-o-Y growth in revenues with a 20-22 per cent Ebit margin band for FY26F.

 

Kotak Institutional Equities: The brokerage expects a gradual Ebit margin improvement Q-o-Q, primarily driven by benefits from Project Maximus. A large deal TCV of $4.5-5 billion (2X Y-o-Y), led by a GBP 1.2 billion mega deal win from NHSBSA, is anticipated. 

 

Ebit is likely to come in at ₹9,513 crore, as compared to ₹9,353 crore in Q2FY26. Analysts believe Infosys will revise FY2026E revenue growth guidance to 2.5-3 per cent from 2-3 per cent. The guidance will imply -2 per cent to flat Q-o-Q in Q4FY26. Its guidance estimate does not include the Versent Group acquisition, which is yet to close.

 

Motilal Oswal Financial Services: Analysts anticipate flat revenue growth Q-o-Q in constant currency (CC) terms due to seasonal furloughs, with H2 weaker than H1 as growth was front-ended, in line with prior years. 

 

Operating margin is likely to remain flat given the absence of wage hikes and lower third-party costs. Ebit for the December quarter (Q3FY26)  is pegged at ₹9,500 crore, as compared to ₹9,400 crore in Q2, and Ebit margin is expected at 21.1 per cent, as compared to 21 per cent in Q2.

 

Further, US Banking, Financial Services, and Insurance (BFSI) is expected to remain resilient, with some pockets of discretionary spend, particularly in rate-sensitive portfolios such as mortgages, while retail remains soft amid tariff uncertainty. The company is likely to maintain its guidance of 2 to 3 per cent Y-o-Y CC.  

 

Axis Direct: The brokerage expects revenue growth to increase by 2.7 per cent to ₹45,679 crore from ₹44,490 crore a year ago. Ebit margins are likely to improve 14 basis points (bps) sequentially to 21.2 per cent from 21 per cent in Q2, led by the cost optimisation program, i.e, Project Maximus.    Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.