INFY - Infosys

📊 NSE: INFY 🏢 Computers - Software - Large 📅 Last Updated: 12/14/2025 8:05

💰 Financial Performance

Revenue Growth by Segment

In FY2025, revenue grew 6.1% (4.2% CC). Segment growth: Manufacturing (11.2%), Financial Services (5.2%), Retail (13.5%), Communication (11.7%), Energy/Utilities (13.3%), Hi-tech (8.0%), Life Sciences (7.3%), and Others (3.0%). In Q2 FY2026, Financial Services and Manufacturing both grew >5% YoY in CC terms.

Geographic Revenue Split

North America (US) contributes ~58% and Europe contributes ~30% of total revenue. In Q2 FY2026, Europe grew >5% YoY in constant currency terms.

Profitability Margins

FY2025 operating margin was 24.4% (up 50 bps from 23.9% in FY2024). H1 FY2026 gross margin was 30.8% (flat YoY). Q2 FY2026 operating margin was 21% (up 20 bps sequentially). FY2026 operating margin guidance is set at 20-22%.

EBITDA Margin

FY2024 EBITDA margin was 23.9% (moderated by 90 bps). Medium-term EBITDA margin is expected to be 24-26% driven by cost optimization and moderated attrition.

Capital Expenditure

Not disclosed in absolute INR Cr for future plans; however, the company maintained a strong net worth of Rs 93,369 Cr and surplus cash of Rs 51,027 Cr as of March 31, 2025.

Credit Rating & Borrowing

Rated by CRISIL Ratings. Total debt as of March 31, 2025, was Rs 8,227 Cr, which is entirely attributed to lease financing. Surplus cash stood at Rs 51,027 Cr.

⚙️ Operational Drivers

Raw Materials

Not applicable for IT services; primary cost driver is human capital (employee compensation).

Import Sources

None

Key Suppliers

None

Capacity Expansion

None

Raw Material Costs

Sales & Marketing (S&M) costs grew 12.8% YoY in H1 FY2026. Employee compensation is a primary headwind, partially offset by Project Maximus (cost optimization).

Manufacturing Efficiency

Employee utilization (excluding trainees) remained stable at 85% in Q2 FY2026. Onsite mix reduced by 40 bps in Q2 FY2026.

Logistics & Distribution

Not applicable for IT services industry.

📈 Strategic Growth

Expected Growth Rate

2-3%

Growth Strategy

Growth is driven by large deal wins ($11.6 bn in FY2025; $3.1 bn in Q2 FY2026), a mega deal worth $1.6 bn announced post-Q2, and leadership in enterprise AI transformation. Strategic acquisitions like the Versent JV in Australia and cost optimization via Project Maximus are key levers.

Products & Services

IT services, enterprise AI transformation programs, digital services, cloud services, and forward-deployed engineering capabilities.

Brand Portfolio

Infosys, Project Maximus (internal program), Versent (JV).

New Products/Services

Enterprise AI transformation programs and forward-deployed engineering services; 12,000 freshers onboarded in H1 FY2026 to support new service delivery.

Market Expansion

Expansion in the Australian market through the Versent JV; growth in Europe (>5% YoY CC in Q2 FY2026).

Market Share & Ranking

Company reported 'increased market share gains' in Q2 FY2026; ranking not specified but described as a leading market position.

Strategic Alliances

Joint venture with Versent in Australia.

🌍 External Factors

Industry Trends

Revival in discretionary spending and AI-driven transformation are key trends; industry saw muted growth of 1.4% CC in FY2024.

Competitive Landscape

Intense competition in the global IT industry from both established and emerging players.

Competitive Moat

None

Macro Economic Sensitivity

High sensitivity to US and European markets which contribute 88% of revenue; growth is constrained by global inflation and macroeconomic uncertainties.