Image Source : Financial Express
Infosys reported Q3 consolidated revenue of ₹454.79 billion, slightly above estimates, but net profit fell to ₹66.54 billion due to a one-time ₹12.89 billion charge from new labour codes. Large deal TCV stood at $4.8 billion, while FY26 revenue growth guidance was revised to 3.0–3.5%, with operating margins seen at 20–22%.
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Infosys Ltd., India’s second-largest IT services company, announced its December-quarter (Q3 FY26) results, reflecting resilient revenue growth but weaker profitability due to regulatory costs.
Notable Updates
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Revenue Performance: Consolidated revenue came in at ₹454.79 billion, ahead of IBES estimates of ₹452.27 billion.
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Net Profit: Profit dropped to ₹66.54 billion, below analyst expectations of ₹73.79 billion, impacted by a one-time labour code charge.
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Major Takeaways
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Labour Code Impact: Infosys booked a ₹12.89 billion charge to comply with new labour regulations, weighing on earnings.
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Large Deals: Total contract value (TCV) for large deals reached $4.8 billion, underscoring strong client demand.
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Guidance Revision: FY26 revenue growth guidance narrowed to 3.0–3.5%, while operating margins are expected between 20–22%.
Important Points
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Despite profit pressure, revenue growth remained steady, reflecting resilient demand in digital and cloud services.
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The narrowed guidance signals cautious optimism amid global macroeconomic uncertainties.
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Large deal wins highlight Infosys’ ability to secure long-term contracts despite near-term margin challenges.
Sources: NDTV Profit – Infosys Q3 Results, Zee Business – Infosys Q3FY26 Earnings, NDTV Profit – Detailed Earnings Report
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