Infosys Q4 results: Net profit down 12%; weak revenue guidance amid uncertainity

Infosys, India’s second-largest technology services exporter, reported a 11.7% decline in net profit for the fourth quarter of FY25—much below the market expectations.

The company's subdued performance summarises the disappointment of the Indian IT industry, as evident from the quarterly results of its peers, TCS and Wipro. In fact, Infosys has projected that its revenue for FY26 in US dollar terms will be in the range of 0-3%.

Infosys reported a net profit of Rs 7,033 crore for the fourth quarter of FY25, compared with Rs 7,969 crore a year ago. The revenue for the quarter stood at Rs 40,925 crore—a year-on-year increase of 7.9%.

On the business outlook, Infosys CEO Salil Parekh said, “The environment remains uncertain and we are keeping a close watch.”

The upheavel in the business environment is primarily due to tariff wars unleashed by US President Donald Trump, which has also had an impact on the performance of Infosys. The IT giant's revenue in the January-March 2025 quarter in US dollar terms saw a quarter-on-quarter decline of 4.2%.

However, the CEO remained confident about the outlook as he sees a ramp in the large deals Infosys has won. The total contract value of large deals for FY25 stood at $11.6 billion.

The company’s operating profit margins—a key indicator of profitability—remained steady at 21% for the fourth quarter. Infosys has projected that this parameter will be in the range of 20-22% in FY26.

Infosys CFO Jayesh Sanghrajka said, “FY25 operating margins expanded by 0.5% which reflects our relentless focus on identifying opportunities for efficiency and executing Project Maximus with discipline, after navigating through multiple headwinds in a challenging macro environment.”

The company’s largest market—North America—continued to show flat growth, largely due to uncertainty in the business environment.

On the HR front, the company ended the fourth quarter with an employee headcount of 323,578, which was an addition of mere 199 people over the third quarter.

Infosys said it would hire about 20,000 freshers during the current fiscal year.

On the recent layoffs of trainees, the CEO asserted that it has been practice for many years. He added that the company employs a rigorous selection and training process and ensures that the new joinees are placed in some other role within the company and outside.

Infosys also announced the acquisition of two companies in the space of consultancy and cybersecurity. It acquired US-headquartered MRE Consulting for $36 million and Australian firm The Missing Link for AUD 98 million.