Infosys Q3 net may rise 1.7% at Rs 3148.9 cr: Motilal Oswal

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26 Aug, 2025 12:21

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Motilal Oswal has come out with its third quarter (October-December) earnings estimates for the IT sector. The brokerage house expects Infosys to report a 1.7 percent growth quarter-on-quarter (growth of 9.5 percent year-on-year) in net profit at Rs 3148.9 crore.

Sales are expected to increase by 3 percent Q-o-Q (up 5.5 percent Y-o-Y) to Rs 13748.3 crore, according to Motilal Oswal.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 3 percent Q-o-Q (up 7.4 percent Y-o-Y) to Rs 3888.5 crore.

Motilal Oswal on Infosys:

In 2QFY15, Infosys retained its guidance of 7-9 percent Y-o-Y growth in FY15 USD revenue (our estimate was 8.1 percent), despite depreciation in currencies like EUR, GBP, CHF and AUD. This implied 80bp increase in CC revenue estimate, in our view.

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Cross currency movements will likely have a 150bp impact on revenue in 3QFY15, of which 100bp was factored in the guidance. This would imply restated full year guidance of 6.75-8.75 percent.

For 3QFY15, we expect Infosys to grow its revenue by 1.2 percent Q-o-Q to USD 2.22 billion. In CC terms, we expect a revenue growth of 2.7 percent, and cross currency to have a negative impact of 150bp Q-o-Q.

We expect the EBIT margin to be flattish Q-o-Q at 26.2 percent. INR depreciation and ongoing cost rationalisation should offset continued investments for growth.

Our other income estimate for the quarter is INR 7.4 billion, while the PAT estimate is INR 31.5 billion, up 1.7 percent Q-o-Q.

The stock trades at 18.2x FY15E and 16x FY16E earnings.

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