Infosys Q1 Results: A Mixed Bag for Indian Investors
Infosys Ltd., India’s second-largest IT services company, has reported its Q1 results for the fiscal year 2025-26. The company has raised its lower-end revenue guidance for the ongoing fiscal year, citing strong deal wins and client consolidation.
The IT giant’s revenue for the quarter ending June 2025 rose 3.3% over the previous quarter to Rs 42,279 crore, beating analysts’ estimates of Rs 41,724 crore. The company’s profit for the quarter, however, declined by 2% to Rs 6,921 crore, meeting analysts’ expectations.
Key Takeaways from Infosys Q1 Results
- Raised lower-end revenue guidance for FY26 to 1-3% from 0-3% previously.
- Revenue rose 3.3% to Rs 42,279 crore, beating estimates of Rs 41,724 crore.
- Profit declined by 2% to Rs 6,921 crore, meeting analysts’ expectations.
- EBIT margin contracted by 20 basis points to 20.8%.
- Net new deals accounted for 55% of the total contract value.
- Employee attrition rose to 14.4% in the June quarter, up from 13.1% in the March quarter.
What it Means for Indian Investors
Infosys’ Q1 results are a mixed bag for Indian investors. On the positive side, the company’s revenue guidance has been raised, indicating strong deal wins and client consolidation. The company’s large deal wins of $3.8 billion also reflect its distinct competitive positioning and deep client relationships.
However, the decline in profit and contraction in EBIT margin may raise concerns among investors. The company’s employee attrition rate has also risen, which may impact its ability to deliver services to clients.
Impact on Indian Stock Market
Infosys’ Q1 results are likely to have a significant impact on the Indian stock market. The company’s stock price has already reacted positively to the results, rising 0.3% ahead of the announcement. The Nifty and Sensex indices may also be influenced by the company’s results, as IT stocks are a significant component of the two indices.
Conclusion
In conclusion, Infosys’ Q1 results are a mixed bag for Indian investors. While the company’s revenue guidance has been raised, its profit decline and contraction in EBIT margin may raise concerns. The company’s employee attrition rate has also risen, which may impact its ability to deliver services to clients. As Indian investors, it is essential to stay updated with the company’s performance and market trends to make informed investment decisions.
