💰 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).

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.

Macro Economic Sensitivity

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

Consumer Behavior

Clients are shifting focus toward deploying AI for both growth and cost efficiency programs.

Geopolitical Risks

Geo-political situations and evolving regulatory landscapes (including immigration) are cited as material risks.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Securities Litigation Reform Act of 1995 and complex evolving regulatory landscapes including immigration changes.

Environmental Compliance

Zero reported material data breaches in FY2025; targeting landfill-free certification for 7 campuses by FY2026.

Taxation Policy Impact

Not disclosed in available documents.

Legal Contingencies

Pending litigations are disclosed in Standalone Financial Statements (Note 2.23); provisions made for material foreseeable losses (Note 2.16).

⚠️ Risk Analysis

Key Uncertainties

Macroeconomic headwinds in key markets (US/Europe), technological disruptions (AI/GenAI), and talent retention (attrition at 14.3%).

Geographic Concentration Risk

88% of revenue is concentrated in the US (58%) and Europe (30%).

Third Party Dependencies

Not disclosed in available documents.

Technology Obsolescence Risk

High risk from AI and Generative AI; company is mitigating this by scaling forward-deployed engineers and AI transformation programs.

Credit & Counterparty Risk

Strong financial risk profile with net worth of Rs 93,369 Cr and surplus cash of Rs 51,027 Cr as of March 2025.