Infosys Q4 disappoints, net profit falls 12% YoY to Rs 7,033 cr; guidance for FY26 in single-digits

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India’s second-largest IT services company, Infosys Ltd, reported a 12 percent year-on-year (YoY) fall in net profit to Rs 7,033 crore in the fourth quarter of FY25. This is below the consensus estimates of Rs 7,278 crore.

Infosys guided for a revenue growth in the range of 0-3 percent in constant currency for the financial year 2025-26.

In January, Infosys had raised its constant currency (CC) revenue growth guidance for FY25 to 4.5-5% for a third quarter in a row, as against its previous guidance of 3.75-4.5%.

Consolidated revenue for the quarter came in at Rs 40,925 crore, up 7.9 percent YoY. Revenue for the quarter was also below analyst estimates of Rs 42,133 crore.

On a sequential basis, the company’s bottomline rose 3.3 percent, the Bengaluru-based company said in a regulatory filing on April 17. Ahead of the Q4 results, Infosys shares rose over 1 percent to close at Rs 1,427.7 on NSE.

In constant currency terms, the topline grew by 4.2 percent YoY.

The EBIT (earnings before interest and tax) margin or the operating margin was up by 90 basis points (bps) to 21 percent, beating consensus estimates of 20.7 percent. Margins were marginally affected by bonus pay and wage hikes rolled out partially in January and April.

The company retained its operating margin guidance of 20-22 percent.

Meanwhile, the IT giant also declared an interim dividend of Rs 20 per share.

For the full year of FY24, revenue grew by 6.1 percent YoY to Rs 1,62,990 crore. Net profit for the year increased by 1.9 percent to Rs 26,750 crore. Operating margin for the year was 21.1 percent, an increase of 40 bps.

“Our performance for the year has been robust in terms of revenues, expansion in operating margins, and the highest ever free cash generation," Salil Parekh, CEO and MD, was quoted as saying in a press release.

“Our depth in AI, cloud, and digital and strength in cost efficiency, automation, and consolidation position us well for the needs of our clients,” he added.

In geography-wise performance, the North America region declined by 40 bps YoY in CC terms, and accounted for 57.1 percent of the total revenue share. This was followed by a growth of 15 percent from the European region, 2.2 percent decline from the rest of the world, and 43 percent increase from the India region.

Parekh said the Eurozone had good growth in FY25, however, the automotive sector was tepid.

The IT major only reports the total contract value of its large deals, and reported a TCV of $2.6 billion, which is lower than last quarter’s $3.2 billion. For the full year, TCV stood at $11.6 bilion.