Q1 Results Highlights: Infosys net profit rises 9%, Tata Consumer revenue jumps 10%

Tata Starbucks added 6 net new stores during the June quarter. This brings the total number of stores to 485 across 80 cities. The firm said that its Cold Brew category continued to grow, contributing to a larger share of the beverage menu mix.

"Gen-Z focused 'Refreshers' further contributed to growth by driving incremental trials," the firm said.

"We delivered a steady topline growth of 10% in Q1 FY26, with double-digit net profit growth. During the quarter, we recorded double-digit growth in the core India business across both tea and salt backed by volume growth. Tata Sampann continued its strong trajectory, with new launches & innovations performing well. However, unfavourable weather impacted volume growth in the RTD business. While transitory issues impacted growth in Capital Foods and Organic India, our focus now turns to delivering on our aspirations in these businesses through ramping up advertising, innovation and distribution expansion," said Tata Consumer Products CEO Sunil D'Souza.

"We delivered yet another quarter of strong performance in the International Business; with margin being accretive to the India business margins. In India, we continued to strengthen omni channel capabilities including food services and pharmacy, with channels of the future (e-commerce and modern trade), demonstrating robust growth," he added.

During the quarter, the company recorded a revenue growth of 12 percent for its India packaged beverages business. Its coffee segment saw a strong revenue growth of 67 percent. Its RTD (Ready to Drink) business was impacted by unseasonal rains and recorded a moderate volume growth of 3 percent, the firm added.

Tata Consumer’s EBITDA however fell 8 percent on-year to Rs 615 crore, due to higher tea costs in India and coffee price corrections in the non branded business

The firm’s Indian business recorded double digit growth, on the back of strong growth in both core categories of tea and salt, supported by underlying volume gains, the firm said in its press release.

Tata Consumer Products reported a net profit of Rs 334 crore for the first quarter of the financial year 2026. This marks a 15 percent on-year jump from the Rs 290 crore net profit reported in the corresponding quarter of the previous financial year. The company’s revenue from operations meanwhile rose 10 percent on-year to Rs 4,778.91 crore during the quarter under review. The Tata Group company had reported revenue from operations at Rs 4,351 crore in the same period last year.

“During the last guidance (0-3%), we had clearly called out that at the lower end of the guidance, we expect heightened uncertainty, and at the upper end we are expecting steady to marginally improving environment. One quarter gone by, we have a strong deal. That is why we have increased the lower end of the guidance. But we still see possible uncertainty on the back of tariff or other macroeconomic triggers. But our deal wins and other metrics give us more confidence," said Infosys CFO Jayesh Sanghrajka.

"There are macroeconomic changes in North America but market is quite strong. We see strong traction in enterprise AI in the region," said Infosys CEO Salil Parekh.

"On a macro level, a lot of large deals are on the back. In Financial Services, we see very strong traction, because of AI, many are consolidation benefits, tech and ops. Some programs, such as banking, are areas where we see more and more IP," said Infosys CEO Salil Parekh.

Dr Reddy’s Labs net profit rose 2 percent on-year to Rs 1,418 crore in Q1 FY26 from Rs 1,392 crore in Q1 FY25. The firm’s revenue from operations 11% YoY to Rs 8,572 crore.

Persistent Systems reported a net profit of Rs 425 crore for Q1 FY26. This marks a 39% YoY jump from the Rs 306 crore net profit reported in the corresponding quarter of the previous financial year. Revenue from operations meanwhile rose to Rs 3,334 crore.

Jayesh Sanghrajka, CFO of Infosys, said that the company has recently rolled out wage hikes to its employees. So it will decide on the next round later.

Infosys CEO Salil Parekh said that the firm has increased the lower end of the guidance due to its strong performance and cooling economic outlook. “With the current outlook where we have seen a lot of the discussions in the economy worldwide coming to a stable situation, but not fully stable. So we have narrowed the guidance,” he said.

North America contributed to 56.5% of Infosys total revenue during the April-June quarter of financial year 2026. This is lower than the 57.1% and 58.9% contribution that area had in Infosys' revenue in Q4 FY25 and Q1 FY25, respectively.

India accounted for 2.9% of the firm's revenue. Take a look at Infosys' revenue contribution in terms of client geography

"Q1 performance is a clear reflection of our unwavering focus on multiple fronts resulting in strong growth at 2.6% QoQ, resilient margins at 20.8% and EPS increase of 8.6% YoY. We continue to leverage Project Maximus to make investments in strategic priorities to drive profitable growth and enhance shareholder value," said Jayesh Sanghrajka, CFO of Infosys. "Cash flow conversion was well above 100% for the fifth consecutive quarter. The impact of currency volatility was effectively managed through our proactive hedging strategy," he added.

"Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees”, said Salil Parekh, CEO and MD of Infosys. "Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships," he added

Bajaj Housing Finance reported a net profit of Rs 583 crore for Q1 FY26. This marks a 21% YoY rise from the Rs 483 crore net profit reported in the corresponding quarter of the previous financial year. Net interest income (NII) rose 33% on-year to Rs 887 crore. Total income meanwhile rose to Rs 2,618 crore.

Voluntary Attrition rate (LTM - IT Services) rose to 14.4%. Total headcount as on June 30 stood at 323,788.

Infosys revised FY26 Revenue Guidance  to 1%-3% from the earlier 0%-3%. It retained margin guidance at 20%-22%.

Infosys reported a 3.8% revenue YoY growth in CC terms. Operating margin was at 20.8%. Free cash flow generation was strong at $884 million, 109.3% of net profit. TCV of large deal wins was $3.8 billion, with 55% net new. ROE improved by 140 bps to 30.4%.

Infosys reported a net profit of Rs 6,921 crore for Q1 FY26. This marks a 9% YoY rise from the Rs 6,368 crore net profit reported in the corresponding quarter of the previous financial year. Revenue from operations meanwhile grew 7.5% YoY to Rs 42,279 crore.

Infosys shares sharply fell nearly 1 percent just before the markets closed for the day. The stock ended the session at Rs 1,559 per share. The IT company is set to release its results for the first quarter of the financial year 2026.

Syrma SGS reported a net profit of Rs 50 crore for Q1 FY26, marking a rise of nearly 158% from Rs 19.3 crore net profit reported in the year-ago period. The firm’s revenue from operations meanwhile fell around 19% YoY to Rs 944 crore.

• Net profit rises 14.5% YoY to Rs 87 crore
• Revenue from operations rises 11% YoY to Rs 875 crore
• Expenses rise to Rs 791 crore

• Net profit rises 71% YoY to Rs 432 crore
• Revenue from operations rises 10% to Rs 3,819 crore
• Firm announces Rs 4 interim dividend

• Net profit falls 62 YoY to Rs 1.23 crore
• Revenue from operations rises 7% YoY to Rs 658 crore
• EPS at Rs 0.08 per share

• Net profit drops 20% YoY to Rs 94 crore
• Revenue from operations falls 1% YoY to Rs 2,114 crore
• EPS falls to Rs 2.49 per share

Sapphire Foods shares  dropped 4% after the company reported a net loss of Rs 2 crore for the April-June quarter of the financial year 2026. The shares of the company are trading at Rs 322 per share.

• Net loss of Rs 1.8 crore in Q1 FY26, vs net profit of Rs 8.5 crore in Q1 FY25
• Revenue from operations rises 8% YoY to Rs 777 crore
• EPS falls to - Rs 0.06 per share

• Net loss of Rs 25.47 crore in Q1 FY26, vs net profit of Rs 7.78 crore in Q1 FY25
• Total income falls to Rs 157.41 crore
• Real estate revenue more than halves to Rs 130.26 crore

Infosys shares rose 1% to trade at Rs 1,587.20 apiece. The company is set to release its results for the first quarter of the financial year 2026 today.

Infosys is expected to report large deal TCV of around $3 billion, according to brokerages, while steady, the figure would reflect a year-on-year decline. The market will also closely watch annual contract value (ACV), especially as many deals signed in recent quarters are consolidation-led or cost takeout in nature.

“We expect EBIT margin to decline around 25bps on headwinds from senior management wage hike, large deal ramp-up cost and increase in SG&A on account of marketing events conducted in US,” ICICI Securities wrote in its research note. The focus will be on the quality of the pipeline, particularly in GenAI-led or transformation-focused deals, which could provide longer-term visibility.

Operating margins are expected to remain flat sequentially, supported by currency tailwinds and some leverage from revenue growth. Q4 margins had benefited by 80 bps from reversals and additional tailwinds from lower variable compensation payout, Kotak said.

Q1 margins will likely be flat sequentially despite robust revenue growth due to wage hike for a few senior employees and large deal transition costs. Infosys is likely to maintain its FY26 EBIT margin guidance at 20-22 percent, the range it has held for several years.

Infosys is expected to raise its FY26 revenue growth guidance from 0-3 percent earlier to 1-3 percent, factoring in the contribution from acquisitions. Several brokerages, including Kotak and HDFC Securities, see the move as conservative, reflecting continued softness in discretionary tech spending and caution in verticals such as manufacturing and retail.

"Demand deterioration has been consistent with the companies’ expectations, though a bit lower than Street expectations," Kotak analysts said in a pre-earnings note. It added the muted environment is unlikely to result in a meaningful revision to full-year target.

Among Tier-1 IT firms, Infosys is expected to post the highest sequential growth in constant currency (CC). Brokerages Kotak, ICICI Securities and Elara have pegged CC sequential revenue growth between 1 percent and 1.6 percent, largely driven by higher billing days and strength in BFSI.

Most of this growth is organic with about 30 basis points (bps) of the 1.6 percent attributable to the recent acquisitions of The Missing Link and MRE Consulting, Kotak Institutional Equities said. While this might prove to be a welcome turnaround after two quarters of muted performance, brokerages have cautioned against reading too much into it. Centrum expects revenue growth to remain muted, with Infosys showing the best performance among Tier-1, citing macro uncertainty after the US tariff-related announcements.

As Infosys gets ready to announce its first quarter results on July 23, investors will be closely tracking signs of a turnaround at India’s second-largest IT services firm after multiple muted quarters. With peers TCS and HCLTech struggling with weak demand, the Street will keenly follow Infosys’ commentary on deal ramp-ups, AI-led transformation and the pace of recovery in key markets.

While the Street expects Infosys to lead Tier-1 peers in revenue growth, the outlook for the fiscal remains clouded by macro headwinds and delayed decision-making cycles in client organisations.

Infosys shares were trading in the green with marginal gains at Rs 1,579. The company is set to release its results for the first quarter of the financial year 2026 today.