Infosys Reports 6.2% Net Profit Increase to ₹7,823 Crore in Q2, Revises FY27 Revenue Guidance

Infosys reported a 6.2 percent growth in net profit, reaching ₹7,823 crore for the second quarter ended September 30, 2026, compared to the previous year. Revenue for the quarter also increased by 10.7 percent year-on-year to ₹49,244 crore. This revenue growth was primarily led by strong performance in the life sciences and energy, utilities, resources, and services sectors. Sequentially, profit saw a marginal rise of 0.7 percent. The company's financial results showed a mixed performance, beating Bloomberg analysts' revenue estimates of ₹49,107.9 crore but falling short of their net profit estimates of ₹7,904 crore.

Amidst continued global uncertainty and tight discretionary spending, Infosys revised its revenue guidance for FY27 downwards, now projecting growth between 1 percent and 2 percent, a reduction from the earlier 1.5 percent to 3 percent. Despite this, the company secured strong large deal wins totaling $5.2 billion during the quarter, with 62 percent of this value being net new. This includes a significant mega deal exceeding $2 billion, which CEO Salil Parekh noted reinforces their position as a trusted partner for complex transformation programs. Parekh also highlighted that AI revenue reached 10.5 percent and grew 29 percent quarter-on-quarter, indicating strong adoption as enterprises move towards AI at scale.

Geographical performance varied, with North America experiencing a 1.6 percent year-on-year decline (1.5 percent in constant currency). In contrast, Europe grew by 3.9 percent, and the rest of the world saw a 15 percent increase on a year-on-year basis. In constant currency, overall revenue growth was 1.2 percent quarter-on-quarter and 1.5 percent year-on-year. CFO Jayesh Sanghrajka stated that operating margins were maintained at 21.0 percent in Q2, attributing this stability to a focus on cost and operational efficiency measures alongside necessary investments.

The company's financial strength was further underscored by a free cash flow of $928 million, representing 113.3 percent of net profit. The Board also announced an interim dividend of ₹26 per share, marking a 13 percent increase from the previous year. Infosys's total headcount at the end of Q2 FY27 stood at 332,542, with 4,480 new employees added compared to the first quarter. Attrition for the quarter was recorded at 12.7 percent.

What to watch: The company's strategy for navigating global uncertainties and sustaining large deal momentum in upcoming quarters.

Editor's note: The draft provides an excellent summary of the financial data and corporate context. It captures almost all pertinent figures and strategic details provided in the source.