Infosys Q1 Profits Surge Amid Strong AI Capabilities

Infosys reported an 8.7% rise in Q1 net profit, reaching Rs 6,921 crore, with revenues up by 7.5% to Rs 42,279 crore. The firm's AI strength and strategic client consolidation underpinned this growth. Despite a year-to-date share decline, efforts focus on strategic investments and valued client relationships.

IT giant Infosys announced a significant 8.7% increase in net profits for the April-June quarter, totaling Rs 6,921 crore, compared to last year's Rs 6,368 crore during the same period.

Revenues also saw a positive uptick of 7.5%, reaching Rs 42,279 crore, a rise from Rs 39,315 crore in the prior year. CEO and MD Salil Parekh cited the growth as evidence of Infosys' robust enterprise AI capabilities, effective client consolidation, and the hard work of its vast 300,000-strong workforce.

Highlighting substantial contract successes, Parekh noted the firm's USD 3.8 billion in large deal wins as indicative of its unique market stance and solid client connections. CFO Jayesh Sanghrajka emphasized ongoing strategic investments via Project Maximus, aiming to bolster profitable growth and shareholder value. Moreover, Sanghrajka reported exceptional cash flow management amid currency volatility.

Despite these positive outcomes, Infosys shares ended the day 0.8% lower at Rs 1,558.90 and have seen a total decline of 17.2% this year. Looking ahead to 2025-26, the company anticipates a revenue growth of 1-3% in constant currency terms, projecting an operating margin between 20-22%.

(With inputs from agencies.)