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Infosys Limited

IT-Software

Head Quarters:Bengaluru, Karnataka
Managing Director: Mr. Salil Parekh

Company Overview

Infosys Limited, founded in 1981 and headquartered in Bengaluru, India, is a global leader in next-generation digital services and consulting. It is one of the largest IT companies in India and among the top global providers of technology solutions. Infosys offers a broad range of services including application development and maintenance, cloud computing, data analytics, enterprise systems, artificial intelligence, and business process management.

The company serves clients across multiple industries such as financial services, retail, manufacturing, communication, energy, and healthcare. Infosys has a global footprint with operations in over 50 countries and a workforce of more than 300,000 employees. It is known for its strong emphasis on innovation, research and development, and sustainable business practices.

Infosys pioneered the Global Delivery Model, which revolutionized outsourcing with distributed project management capabilities. Its flagship platform, Infosys Cobalt, enables enterprises to accelerate their cloud journeys. The company invests heavily in talent development, digital upskilling, and partnerships with major tech providers.

Infosys is listed on the NSE and BSE in India and on the NYSE in the U.S. Its consistent financial performance, robust corporate governance, and client-centric approach have made it a trusted partner for digital transformation across the globe.

Head Quarters: Bengaluru, Karnataka

Managing Director: Mr. Salil Parekh

Financial Highlights

  1. Quarterly Performance:

    INR Crores
    Metric Mar 25 Dec 24 Mar 24 YoY % QoQ %
    Revenue 42,115 42,623 40,652 ▲ 4% ▼ 1%
    Operating Profit 10,962 10,873 11,403 ▼ 4% ▲ 1%
    Profit After Tax 7,038 6,822 7,975 ▼ 12% ▲ 3%

    Insights:

    Revenue:

    • FY25 revenue grew 4.2% in constant currency despite challenging environment
    • Q4 revenue decline of 3.5% reflects seasonal weakness and reduced third-party revenues

    Operations:

    • Seeing strong demand for AI-led transformations with 400+ active projects
    • Large deal pipeline remains healthy with $11.6 billion TCV signed in FY25

    Profit:

    • Achieved 50bps margin expansion to 21.1% through operational efficiencies
    • Maintaining 20-22% margin guidance despite wage hike impacts
    • Record $4.1 billion free cash flow demonstrates strong execution

    Outlook:

    • 0-3% growth guidance reflects current macroeconomic uncertainty
    • Positioned to capitalize on both growth and cost optimization opportunities

  2. Segment Wise Revenue

  3. Geography Revenue

Key Ratios

Key Ratios Latest (Q4FY25) Industry Benchmark Remarks
EPS 82.3 70–90 ✅ In range
P/E Ratio 24.5 15–25 ⚠️ Slightly high
RoA (%) 2.36% 1.5%–2.0% ✅ Above average
RoE (%) 13.1% 12%–15% ✅ Healthy
DE Ratio 2.8 6–9x ✅ Very low
OPM (%) 52.8% 40%–55% ✅ Strong

Management Updates

Industry Update

  • Clients are prioritizing AI-led transformations over isolated use cases, with demand shifting toward scalable solutions
  • Cost optimization and efficiency gains have become non-negotiable in client negotiations, especially for large deals
  • Sector divergence is clear - BFSI and manufacturing show resilience while retail and communications face persistent headwinds
  • Geographic performance is bifurcating, with Europe delivering strong growth while North America slows
  • Pricing models are evolving to include more outcome-based structures, particularly for AI and automation projects

Management Guidance

Key Focus Area Guidance/Target Current Status Timeline
Revenue Growth 0-3% CC growth 4.2% FY25 FY26
Margin Maintenance 20-22% operating margin 21.1% FY26
AI Transformation Scale to 500+ AI Projects 400+ Active Next 12M
Geographic Rebalancing Increase Europe contribution 30% of revenue (15% growth) Medium-term
Cash Flow Optimization Sustain >100% FCF conversion 129% in FY25 Ongoing

Guidance Tracker

Guidance Parameter Previous Target Current Status (Q4 FY25) Status Comment
Revenue Growth (CC) 4-7% (FY25) 4.2% (FY25 actual)     ❗ Missed Macro pressures led to lower growth; FY26 guidance cut to 0-3%
Operating Margin 21-22% (FY25) 21.1% (FY25) ✅ Achieved FY26 target maintained at 20-22%
Large Deals (TCV) $10B+ annually $11.6B (FY25) ✅ Exceeded 56% net new deals; pipeline robust but decision cycles slowing
AI Projects 300+ deployments 400+ active ✅ Exceeded Demand shifting to enterprise-scale AI transformation
Europe Growth Increase share to 25% 30% of revenue ✅ Exceeded 15% YoY growth vs. company avg of 4.2%
Free Cash Flow >100% conversion 129% of Net Profit ✅ Exceeded Record $4.1B FCF; strong collections and cost control

Shareholding Pattern

Category Mar 2024 Dec 2024 Mar 2025 YoY Change QoQ Change
Promoters 14.71% 14.43% 14.60% ▼ -0.11% ▲ +0.17%
FIIs 34.11% 33.30% 32.89% ▼ -1.22% ▼ -0.41%
DIIs 35.62% 38.19% 38.32% ▲ +2.70% ▲ +0.13%
Government 0.21% 0.20% 0.21% — ▲ +0.01%
Public 15.06% 13.62% 13.72% ▼ -1.34% ▲ +0.10%
Others 0.29% 0.27% 0.26% ▼ -0.03% ▼ -0.01%

Red Flags

Red Flag Parameter Status Severity
Management Changes No Changes Low
Auditor Exit No Changes Low
Credit Rating No Changes Low
Share Holding Pattern No Major Changes Low
Liquidity Adequate Low

Conclusion

Infosys delivered a strong FY25 with $19.3B revenue (4.2% CC growth), 21.1% operating margin, and $11.6B in large deals. The company expanded strategically in AI, energy consulting, and cybersecurity, while navigating macroeconomic uncertainties. FY26 guidance of 0–3% CC growth reflects cautious optimism amid global volatility.

Key Positives

  • Steady Growth – Achieved 4.2% CC growth in FY25, with Europe growing 3x company rate (15% CC).
  • Margin Improvement – Expanded operating margins by 50 bps YoY to 21.1% despite headwinds.
  • AI Leadership – 200+ AI agents deployed; 400+ AI projects underway, driving transformational client outcomes.

Key Negatives

  • Weak Guidance – FY26 growth guidance (0–3%) signals near-term uncertainty and softer demand.
  • Attrition & Hiring – 14% attrition persists; campus hiring delays (337 layoffs reported) raise talent concerns.
  • Discretionary Spend Pressure – Clients prioritizing cost optimization, potentially delaying non-critical projects.
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