Listen to this article in summarized format
Revenue from operations in the reporting period increased 11% YoY to Rs 49,244 crore.
The company has also declared an interim dividend of Rs 26 per share and fixed November 3, 2026 as a record date for the same.
Catch all the latest updates on Infosys Q2 Results here
Infosys cited a challenging demand environment as a reason for lowering its guidance. The Bengaluru-based company retained its operating margin guidance of 20-22% for the full financial year.
The results were broadly in line with Street expectations on revenue, although profit growth came below estimates. An average of seven brokerages had projected an 11% rise in revenue and an 8% increase in net profit for the quarter.
On a sequential basis, net profit edged up 0.7% from Rs 7,769 crore in the June quarter, while revenue increased 2% from Rs 48,211 crore.
In dollar terms, revenue stood at $5.15 billion, growing 1.3% year-on-year and 1.2% sequentially. Constant-currency revenue growth was 1.5% year-on-year and 1.2% quarter-on-quarter.
Operating profit increased 10.4% year-on-year to Rs 10,330 crore from Rs 9,353 crore. Operating margin stood at 21%, unchanged from a year earlier and marginally lower than 21.1% in the June quarter.
Deal bookings
Despite the cautious revenue outlook, Infosys reported strong large deal bookings during the quarter. Total contract value of large deals stood at $5.2 billion, with new business accounting for 62% of the total. The bookings included a mega deal valued at more than $2 billion."We had strong large deals of $5.2 billion, including a mega deal of over $2 billion, reinforcing our position as a trusted partner in the marketplace when clients embark on large and complex transformation programs," said Salil Parekh, CEO and MD of Infosys.
AI revenue
Infosys reported a 29% sequential increase in revenue from artificial intelligence services, which accounted for 10.5% of its total revenue during the quarter.The company has been expanding its AI services business as clients seek automation, productivity improvements and technology-led transformation.
"Our AI revenue was at 10.5% and grew 29% quarter-on-quarter. As enterprises move to AI adoption at scale, the strong growth in AI revenues is a recognition of our differentiated market positioning and client confidence," Parekh said.
Also Read: Infosys dividend alert! IT major announces Rs 26 per share dividend. Check record date
Segment results
Among business segments, life sciences reported the strongest constant-currency growth of 32.5% year-on-year, followed by energy, utilities, resources and services at 7.3%. Financial services revenue grew 2.1% in constant currency terms, while communication recorded growth of 4.1%.However, the hi-tech business declined 17.3% year-on-year, while retail revenue fell 7.7% in constant currency terms. Manufacturing revenue declined 0.7%.
Geographically, Europe recorded constant-currency growth of 4.6%, while North America, which accounted for 54.6% of revenue, declined 1.5%.
Other details
Infosys reported free cash flow of Rs 8,898 crore during the quarter, down 8.1% year-on-year. Its consolidated cash and investments stood at Rs 45,232 crore at the end of September."We delivered operating margins of 21% in Q2 amidst heightened volatility. Focus on cost and operational efficiency measures while making the required investments have led to stable margins," said CFO Jayesh Sanghrajka.
The company's total employee strength increased to 3,32,542 at the end of September from 3,28,062 in the preceding quarter, a net addition of 4,480 employees. Voluntary attrition in IT services declined to 12.7% from 13% in the June quarter.
For the first half of FY27, Infosys reported a 9% rise in net profit to Rs 15,592 crore, while revenue increased 12% to Rs 97,454 crore.
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price