Infosys Q2 net profit rises 13 pc to Rs 7,364 cr, ups growth outlook

New Delhi, Oct 16 (PTI) IT company Infosys on Thursday posted a 13.2 per cent increase in consolidated net profit to Rs 7,364 crore for the second quarter ended September 30, mainly on account of large deal wins.

The company had posted a net profit of Rs 6,506 crore a year ago.

Its revenue from operations grew 8.6 per cent to Rs 44,490 crore during the quarter from Rs 40,986 crore in the year-ago period.

The company increased the lower base of the growth outlook for FY26 to 2-3 per cent in constant currency terms from 1-3 per cent it had projected in the June 2025 quarter.

"We had a strong performance in Q2. Our operating margin was 21 per cent. Deals were at USD 3.1 billion out of which 67 per cent were net new work. In addition, we announced a mega deal worth USD 1.6 billion after the close of the quarter. We have added 8,000 employees during the quarter," Infosys MD and CEO Salil Parikh said.

The company posted a marginal decline in operating margin to 21 per cent on a year-on-year and quarterly basis.

The free cash flow generation was 131 per cent of net profit to Rs 9,677 crore and TCV (total contract value) of large deal wins was USD 3.1 billion (about Rs 27,525 crore). The company bagged deals worth USD 2.4 billion in the September 2025 quarter.

The financial services segment, the biggest contributor in Infosys revenue at 27.7 per cent, grew by 5.6 per cent.

The manufacturing segment revenue increased 9.3 per cent, energy and utilities by 2.4 per cent, communications 5.7 per cent and the hi-tech segment surged 8.3 per cent.

Its retail segment revenue declined marginally, and the life sciences dipped 8.9 per cent.

The company increased the employee headcount during the quarter by 8,203 to 3,31,991 from 3,23,788 reported in the June 2025 quarter.

The attrition rate at the company increased to 14.3 per cent during the reported quarter from 12.9 per cent a year ago, while it was marginally lower compared to the June 2025 quarter.

"With a strong performance in Q2, we changed our revenue growth guidance for the financial year. The new guidance is growth between 2 and 3 per cent in constant currency terms for the full year. Our operating margin guidance remains the same as in the past quarter at 20-22 per cent for the full year," Parikh said.

When asked about the impact of H1B visa fee to USD 100,000, Parikh hinted at increasing local hiring and said the number of people who require Infosys sponsorship for immigration in the US is a minority.

"The majority of the people don't require it from our perspective. Second, we've built a large number of centres and hubs, which are focused on digital, on innovation, on technology and AI in the US. We have relationships with universities, we have a training facility there. With all of that in mind, we are clear today that we will work with our clients without any disruption to their services and into the future," he said.

Revenues from North America increased 1.7 per cent to account for 56.3 per cent of the total earnings during the reported quarter.

Infosys' business in Europe rose 10.6 per cent, accounting for 31.7 per cent of the company’s total revenue, while India business contributed 2.9 per cent to the total business.

Parikh said that the approach on visa-related matters will depend on the work done by the company with clients, local hiring, localisation, etc “We have been working with our clients over the last few weeks to make sure that the service delivery and business continuity remain current,” Parikh said.

Talking about business from the artificial intelligence segment, Parikh said that the company has strong partnerships with a lot of different large tech companies and the company sees a huge amount of opportunity in the enterprise AI space. Parikh said the overall market environment is still uncertain.

“We still see in some of our large markets that there is growth, but there's also some inflation, and the job creation is constrained. In some other markets, there are cost constraints. Some industries are seeing that. So that's a mix. Equally, we are seeing a lot of strength, for example, in financial services,” he said.

Infosys announced an interim dividend of Rs 23 per share, an increase of 9.5 per cent over the last fiscal.

"In line with our capital allocation policy, we have announced a share buyback for Rs 18,000 crores during the quarter and an interim dividend of Rs 23 per share, an increase of 9.5 per cent over last fiscal,” Infosys chief financial officer, Jayesh Sanghrajka, said.

He said that the company is in the process of seeking shareholders' approval for the buyback.

Shares of Infosys settled 0.08 per cent lower at Rs 1,472.75 apiece on the BSE on Thursday. PTI PRS BAL MR