Big-ticket deals help Infy raise guidance for FY26
In the April-June quarter, Infosys reported an 8.7 per cent increase in its consolidated net profit to Rs6,921 crore. Its revenue stood at Rs42,279 crore, a rise of 7.5 per cent over the same period of last year. In dollar term, revenue was at $4.94 billion, an increase of 2.6 per cent sequentially in constant currency term.
'Our growth in Q1 was broad-based. Our large deal wins stood at $3.8 billion. A large driving factor is our success in enterprise AI (implementation). The economy worldwide has come to a stable situation, but it is not fully settled. As we get closer, we narrowed our guidance keeping in mind the changes seen in the US and Europe,' Salil Parekh, CEO of Infosys, said in the post results press conference.
'We have benefited from deployment of AI agents and from consolidation (deals) that clients have looked at us and being positive,' he added. For the quarter, operating margin of Infosys was at 20.8 per cent, a dip of 20 basis points from previous quarter. The company maintained its operating margin guidance of 20-22 per cent for the whole financial year.
'We continue to leverage Project Maximus to make investments in strategic priorities to drive profitable growth,' JayeshSanghrajka, Chief Financial Officer of Infosys, said.
During the June quarter, financial services vertical grew 5.6 per cent YoY basis, while manufacturing vertical rose 12.2 per cent. Energy vertical saw a growth of 6.4 per cent, while retail grew marginally at 0.4 per cent.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
41 minutes ago
- Time of India
Sattva-Blackstone backed KRT gets Sebi nod to launch Rs 4,800-cr REIT-IPO
Knowledge Realty Trust , sponsored by realty firm Sattva Group and Blackstone , has got Sebi approval to launch its REIT public offering to raise Rs 4,800 crore fund. Last month, Knowledge Realty Trust (KRT) had raised Rs 1,400 crore from investors ahead of its maiden REIT public issue. Explore courses from Top Institutes in Please select course: Select a Course Category Healthcare Data Science Cybersecurity PGDM Data Science Project Management Public Policy healthcare Leadership Design Thinking Data Analytics Technology MCA Product Management others Operations Management MBA Others Degree Finance Management CXO Digital Marketing Artificial Intelligence Skills you'll gain: Financial Analysis in Healthcare Financial Management & Investing Strategic Management in Healthcare Process Design & Analysis Duration: 12 Weeks Indian School of Business Certificate Program in Healthcare Management Starts on Jun 13, 2024 Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No annual fees for life UnionBank Credit Card Apply Now In early March, the KRT filed the draft red herring prospectus (DRHP) with Sebi to launch an initial public offering (IPO) and list the REIT on stock exchanges. This is part of a strategy to monetise its 30 prime office assets across major cities. According to sources, KRT received Sebi approval to launch its REIT-IPO, which is scheduled to hit the capital markets in the first week of August. Live Events The company plans to raise Rs 4,800 crore through the public issue as it has already raised Rs 1,400 crore from investors, they added. Sattva Group spokesperson declined to comment. The company will start the roadshow this week, and the price band is likely to be announced on August 30. KRT is set to become India's largest REIT by gross asset value (around Rs 62,000 crore). Its net operating income stood at Rs 3,432 crore in the previous fiscal year. The KRT owns over 46 millions sq ft of office assets across 29 assets in six cities, primarily Mumbai, Bengaluru, and Hyderabad. The assets include One BKC and One World Center in Mumbai, Knowledge City, and Knowledge Park in Hyderabad and Cessna Business Park and Sattva Softzone in Bengaluru. Blackstone and Sattva will continue to own about 80 per cent of the REIT. At present, there are four listed REITs in India -- Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. Apart from Nexus Select Trust, the other three REITs are backed by rent-yielding office assets. Nexus owns a large portfolio of retail real estate spaces. Bengaluru-based Sattva Developers has so far constructed 74 million sq ft across seven Indian cities in commercial, residential, co-living, co-working, hospitality, and data centre sectors. An additional 75 million sq ft is in planning and implementation stage. Blackstone, one of the leading global investment firms, has a huge exposure in the Indian real estate market. The two sponsors have decided to adopt brand brand-neutral strategy to grow the KRT portfolio inorganically through third-party acquisitions. The existing four REITs have a combined portfolio of over 126 million sq ft of Grade A office and retail space across the country. Since their inception, these REITs have collectively distributed over Rs 21,000 crore to unitholders. PTI
Deccan Herald
2 hours ago
- Deccan Herald
'India will have 2,500 GCCs by 2030'
Bengaluru-based J2W offers end-to-end solutions to enterprises develop and scale up their GCCs in India.
Mint
2 hours ago
- Mint
India gets a new No. 7 IT services company as churn continues
Coforge Ltd is now the country's seventh-largest software services outsourcer by revenue as it toppledMphasis Ltd, reflecting the competition and churn in India's mid-sized information technology segment. Noida-based Coforge, formerly NIIT Technologies Ltd, reported $442 million in revenue for the three months ended June 2025, growing 9.6% sequentially. Bengaluru-based Mphasis's revenue rose 1.6% to $437 million during the first quarter. Coforge has jumped three spots in less than a year. It had nudged ahead ofPersistent Systems Ltd in September 2024, and overtookHexaware Technologies Ltd last December. Growth has slowed for Pune-based Persistent and Mphasis due to client and sector-specific concerns. This is the fifth instance of a change in the pecking order in the country's $283-billion IT industry in less than two years, a period also marked by global uncertainties and caution among clients. Many of the changes in Indian IT's revenue ranking involved mid-cap firms. Analysts at Kotak Institutional Equities expect Coforge will break into the top six, which generate at least $1 billion in revenue annually. 'We believe Coforge will exit FY2026, with a revenue run-rate of US$2 bn and on [a] ttm (trailing twelve months) basis by the June 2026 quarter. This is impressive against the backdrop of the industry slowdown where peers are struggling," said Kotak's Kawaljeet Saluja, Sathishkumar S, and Vamshi Krishna, in a 25 July note. Mphasis ceded ground to Coforge after losing business from Fedex Corp, which is one of its oldest clients and accounted for 8% of its revenue. The company's revenue from logistics and transportation companies fell by almost half to ₹2,171 million (about $25 million) in the June quarter. The big four of the information technology (IT) services sector include Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies Ltd andWipro Ltd, which together account for 26% of the Mahindra Ltd andLTIMindtree Ltd are the fifth and the sixth-largest IT outsourcers. Coforge on a roll At the heart of Coforge's growth is the 13-year software product delivery deal with Sabre, a Texas-based travel tech company with a deal value of $1.56 billion and signed in March this year. The company's revenue also got a big boost from its biggest acquisition in May last year, that of Hyderabad-basedCigniti Technologies,a digital assurance and engineering services company. Coforge acquired a 54% stake in the company for $220 million. Even investors are buying into the Coforge story. Its share price has almost jumped fourfold since May 2017, when Sudhir Singh joined as its chief executive, to ₹1,689.35 on Friday's close. By comparison, the benchmark BSE Sensex rose almost threefold to 81,463.09 points during the period. Still, Coforge has its challenges. For one, there was not much cheer on the profitability front as Coforge's operating margins at 13.1% were largely flat on a sequential basis in the first quarter of FY26. Another concern for the company is its free cash flow, or the cash left after operating expenses and capital expenditure. Coforge spent more money than it earned through its operations as negative free cash flow for the quarter totalled $21.5 million. It is optimistic about a turnaround. 'I would expect quarter 2 also to be an equally robust quarter. And H2, just using that term for a third time, should also be a robust second half for us," said CEO Singh during the company's post-earnings analyst call on 24 July. Mid-cap churn Mid-cap companies stay neck-and-neck by revenue. Mint's April analysis revealed that the revenue gap between the seventh and the twelfth-largest IT outsourcers is about $600 million. Persistent Systems, Hexaware and L&T Technology Services ended the June 2025 quarter with a revenue of $389.7 million, $382.1 million, and $335 million, respectively. At the same time,Sonata Software Ltd overtook L&T Technology Services Ltd to become the country's 11th-largest IT services provider. Firstsource Solutions Ltd could be the latest to enter the Indian IT's $1-billion revenue club. The Billionaire Sanjiv Goenka-owned firm ended the January-March period with $250 million in top line, up 0.4% sequentially. If the company generates at least $250 million each in the rest of the four quarters, it would hit $1 billion in yearly revenue. Firstsource has yet to announce its results for the June first quarter of the current fiscal year. Stability at top While the mid-cap IT has seen frequent churn over recent years, the top order is intact. And it's likely to stay stable for some time as the difference in the quarterly revenue of LTIMindtree and Coforge is now $711 million–or about 60% Coforge's current Q1 revenue. The pecking order at the top has been stable since 2018, when HCL Technologies Ltd overtook Wipro Ltd as the country's third-largest IT outsourcer. Even though the second-largest Infosys Ltd and Nasdaq-listed Cognizant Technology Solutions Corp have been edging past each other, the rankings have not changed materially.
