Infosys Limited Overview
Infosys is India's second-largest IT services company by revenue. It crossed US$20 billion in annual revenue for the first time in FY26 (US$20,158 million) and serves 1,965 active clients from a delivery base of about 325,000 people. It now describes itself as an "AI-first" business consulting and technology services firm. The franchise rests on three things: long-running application development, maintenance and modernisation relationships with Global 2000 enterprises; a growing large-deal engine (US$14.9 billion of large-deal TCV in FY26 and US$5.2 billion in Q2 FY27 alone); and a portfolio of proprietary platforms (Topaz for AI, Cobalt for cloud, Finacle for banking software). Its link to the semiconductor value chain runs through Engineering Services. That unit was strengthened by the 2024 purchase of InSemi, a semiconductor design and embedded-services firm. It provides chip-design, verification, embedded-software and "chip-to-cloud" engineering to semiconductor, consumer-electronics, automotive and hi-tech clients. Infosys combines industry-leading margins (about 21% operating margin) with net cash and over 100% cash conversion. Its main challenge is organic growth that has slowed to low single digits as AI deflates traditional service lines.
What the company does. Infosys sells consulting, technology, outsourcing and engineering services. It also licenses a smaller set of software products and platforms. Its work spans the full enterprise technology stack: strategy and business consulting; application development and maintenance; packaged-application implementation (SAP, Oracle, Salesforce, ServiceNow, Workday, Guidewire, Epic and others); cloud and infrastructure management; data, analytics and AI; cybersecurity; business process management through Infosys BPM; engineering and R&D services through Infosys Engineering Services, in-tech and InSemi; and industry platforms such as Finacle, McCamish and Stater.
Company's own description. In its October 2026 results release, Infosys calls itself "a global leader in AI-first business consulting and technology services". Its FY26 annual report frames the strategy around "AI-first" value delivery through Infosys Topaz, a "Topaz Fabric" layer of agents and platforms, and cloud foundations through Infosys Cobalt.
Independent characterisation. Infosys is a scaled, India-centric offshore services franchise. Over the past decade it moved from pure application outsourcing toward transformation programmes, and it is now trying to re-price that model around AI-enabled productivity. Its economics come from labour arbitrage combined with growing non-linear assets: platforms, automation and reusable agents. Management states openly that AI is compressing legacy service lines while creating new demand in AI strategy, data, engineering, legacy modernisation and "physical AI". The investment debate centres on whether that net effect turns positive.
Revenue model mix
Services: time-and-materials: Description: Effort-based billing for development, consulting and staffing-style engagements; Relative weight: Major share
Services: fixed-price and fixed-capacity: Description: Outcome or milestone-based projects and multi-year managed-services contracts; most large deals use this form; Relative weight: Major share, rising with large deals
Business process management: Description: Transaction-based and FTE-based BPM contracts (Infosys BPM, McCamish, Stater mortgage servicing); Relative weight: Mid-single-digit share
Software licences, subscriptions and SaaS: Description: Finacle core banking (including SaaS on Microsoft Azure), EdgeVerve platforms, Panaya, Equinox, McCamish platforms; Relative weight: Low single-digit share
Engineering and R&D services: Description: Product engineering, embedded, semiconductor design, automotive software (in-tech); Relative weight: Embedded in Manufacturing, Hi-Tech and Communication
Infosys does not report product revenue as a separate segment. Product and platform revenue sits inside the industry segments; Finacle, for example, falls within Financial Services.
Value-chain position. Infosys is a Tier-1 systems integrator and managed-services provider. It sits between hyperscalers and model providers (Microsoft, AWS, Google, OpenAI, Anthropic, NVIDIA) and enterprise end-users. Its value-add is integration, domain process knowledge, change management and run-operations at scale. In semiconductors it works upstream in design services (RTL/ASIC design, physical design, verification, embedded firmware) rather than in fabrication or equipment.
Customer types. Its clients are large and very large enterprises, mainly in the Fortune 500 and Global 2000. It also serves public-sector bodies, including the UK NHS Business Services Authority through a 15-year, £1.2 billion workforce-management contract signed in 2025, plus Infosys Public Services in the US. A long tail of mid-market clients is reached through acquisitions such as Optimum, Stratus, Versent and The Missing Link. Active clients numbered 1,965 at the end of FY26, with 111 gross additions in Q4 FY26. In FY26 the company added 3 clients in the US$50 million+ revenue band, 3 in the US$100 million+ band and 2 in the US$400 million+ band.
End-markets served (FY26 share of revenue). Financial Services 27.9%; Manufacturing 16.3%; Energy, Utilities, Resources & Services 13.3%; Retail 12.9%; Communication 12.2%; Hi-Tech 7.8%; Life Sciences 6.9%; Others 2.7%. By geography: North America 56.1%; Europe 32.1%; Rest of the World 8.9%; India 2.9% (FY26 Form 20-F).
Strategy
Stated strategy
The FY26 annual report and recent investor communications frame the strategy around these themes:
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"AI-first" enterprise value. Position Infosys as the partner that turns enterprise AI from pilots into production through Infosys Topaz and Topaz Fabric. Management defines a broad AI-services addressable market across AI strategy, AI engineering, data, process AI, legacy modernisation, physical AI and "trust" (responsible AI).
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Cloud foundations. Infosys Cobalt for migration, modernisation and multi-cloud operations.
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Large-deal engine and vendor consolidation. Win multi-year cost-takeout and transformation deals; in FY26 it signed 96 large deals worth US$14.9 billion, including 3 mega deals.
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Industry depth through targeted M&A. Healthcare providers (Optimum), P&C insurance (Stratus), Australian cloud (Versent), cybersecurity (The Missing Link), energy trading (MRE), automotive engineering (in-tech) and semiconductors (InSemi).
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Operational efficiency and margin resilience. Project Maximus levers (pricing, automation, pyramid, onsite mix, subcontractor reduction) to hold 20–22% margins.
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Talent model. About 20,000 fresher hires a year, AI reskilling of the existing workforce, and a build-out of about 6,000 "frontier engineers" specialised in AI. Management has said it does not plan large-scale restructuring.
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ESG Vision 2030. Climate positive by 2030, zero waste to landfill, 45% women in the workforce, and digital skills for 18 million people.
Initiative register (last 24 months)
| Date | Initiative | Detail |
|---|---|---|
| Nov 2024 – 2025 | Topaz SLMs and agents | Industry small language models and agent libraries, built partly with NVIDIA |
| Apr 2025 | Australian cybersecurity build-out | Acquisition of The Missing Link |
| Aug 2025 | Versent joint venture with Telstra | 75% stake; AI-enabled cloud for Australian enterprises and government |
| Sep 2025 | NHS BSA programme | £1.2 billion, 15-year workforce-management modernisation |
| Sep–Dec 2025 | ₹18,000 crore buyback | Largest buyback in Infosys' history |
| FY26 | Project Maximus | Margin programme; contributed about 30 basis points of tailwind in Q4 FY26 |
| FY26 | Topaz Fabric | Agentic AI platform with 600+ agents |
| Early 2026 | Agentic engineering partnerships | Devin (Cognition) and Cursor deployed in internal engineering and client work |
| 17 Feb 2026 | Anthropic collaboration | Claude models, including Claude Code, integrated with Topaz; an Anthropic Centre of Excellence; agents for telecom, financial services, manufacturing and software development |
| Mar–May 2026 | Healthcare and insurance M&A | Optimum (up to US$465 million) and Stratus (US$95 million) |
| Apr 2026 | OpenAI partnership | Integration of OpenAI models into Infosys platforms for software development and IT modernisation |
| Jul 2026 | 6,000 frontier engineers | AI-specialist talent build-out |
| Jul 2026 | CEO succession | Internal successor named eight months ahead of transition |
| Sep 2026 | Indore expansion | New delivery capacity in central India |
| 1 Oct 2026 | Columbia University collaboration | Research on AI applications |
| 19 Oct 2026 | Truist GCC | Build-operate model for Truist's India Global Capability Center |
Nov 2024 – 2025: Initiative: Topaz SLMs and agents; Detail: Industry small language models and agent libraries, built partly with NVIDIA
Apr 2025: Initiative: Australian cybersecurity build-out; Detail: Acquisition of The Missing Link
Aug 2025: Initiative: Versent joint venture with Telstra; Detail: 75% stake; AI-enabled cloud for Australian enterprises and government
Sep 2025: Initiative: NHS BSA programme; Detail: £1.2 billion, 15-year workforce-management modernisation
Sep–Dec 2025: Initiative: ₹18,000 crore buyback; Detail: Largest buyback in Infosys' history
FY26: Initiative: Project Maximus; Detail: Margin programme; contributed about 30 basis points of tailwind in Q4 FY26
FY26: Initiative: Topaz Fabric; Detail: Agentic AI platform with 600+ agents
Early 2026: Initiative: Agentic engineering partnerships; Detail: Devin (Cognition) and Cursor deployed in internal engineering and client work
17 Feb 2026: Initiative: Anthropic collaboration; Detail: Claude models, including Claude Code, integrated with Topaz; an Anthropic Centre of Excellence; agents for telecom, financial services, manufacturing and software development
Mar–May 2026: Initiative: Healthcare and insurance M&A; Detail: Optimum (up to US$465 million) and Stratus (US$95 million)
Apr 2026: Initiative: OpenAI partnership; Detail: Integration of OpenAI models into Infosys platforms for software development and IT modernisation
Jul 2026: Initiative: 6,000 frontier engineers; Detail: AI-specialist talent build-out
Jul 2026: Initiative: CEO succession; Detail: Internal successor named eight months ahead of transition
Sep 2026: Initiative: Indore expansion; Detail: New delivery capacity in central India
1 Oct 2026: Initiative: Columbia University collaboration; Detail: Research on AI applications
19 Oct 2026: Initiative: Truist GCC; Detail: Build-operate model for Truist's India Global Capability Center
Guidance and medium-term targets
| Item | FY26 initial | FY26 final | FY27 initial (Apr 2026) | FY27 Q1 (Jul 2026) | FY27 Q2 (Oct 2026) |
|---|---|---|---|---|---|
| Revenue growth, constant currency | 0–3% | 3.0–3.5% | 1.5–3.5% | 1.5–3.0% | 1.0–2.0% |
| Operating margin | 20–22% | 20–22% | 20–22% | 20–22% | 20–22% |
Revenue growth, constant currency: FY26 initial: 0–3%; FY26 final: 3.0–3.5%; FY27 initial (Apr 2026): 1.5–3.5%; FY27 Q1 (Jul 2026): 1.5–3.0%; FY27 Q2 (Oct 2026): 1.0–2.0%
Operating margin: FY26 initial: 20–22%; FY26 final: 20–22%; FY27 initial (Apr 2026): 20–22%; FY27 Q1 (Jul 2026): 20–22%; FY27 Q2 (Oct 2026): 20–22%
FY26 actual growth was 3.1% in constant currency, inside the upgraded band. The FY27 revisions came from a European manufacturing client's programme termination (a 0.75–1 point headwind), further onsite mix reduction (0.75–1 point), pricing pressure from AI-driven productivity commitments and softer macro assumptions. The 1.5–3.0% guidance included about 1.7 points of inorganic contribution, which implies roughly flat organic growth. The 1–2% band implies limited sequential growth in H2 FY27. Annualised margin dilution from the Optimum, Stratus and Versent acquisitions is about 70 basis points, and management guides a 29–30% effective tax rate for FY27.
Products & Services
Cross-industry AI, cloud and digital platforms
| Offering | Description and capabilities | Target customer | Launch / latest | Pricing model |
|---|---|---|---|---|
| Infosys Topaz | AI-first suite of services, solutions and platforms built on generative and agentic AI. Covers AI strategy, data readiness, AI engineering, process AI, responsible AI and industry-specific agents | Enterprises across all verticals | Launched May 2023; Anthropic Claude integration Feb 2026; OpenAI integration Apr 2026 | Embedded in services contracts; outcome-linked and platform components |
| Topaz Fabric | Composable stack of AI agents, workflows and models that provides governance, enterprise context and infrastructure "runways". It carries more than 600 AI agents and is the company's main platform for AI at scale | CIOs and COOs scaling AI from pilots to production | Launched FY26 | Platform and services |
| Infosys Topaz small language models | Industry-tuned SLMs such as BankingSLM and ITOpsSLM, built on NVIDIA AI Enterprise | Banks and IT operations | 2,024 | Licence and services |
| Agentic AI Foundry / AI agents | Library of industry and function agents (KYC/AML, credit, IT operations, service provisioning, code modernisation), deployed together with Anthropic Claude Code, Cognition's Devin and Cursor | Regulated industries, telecom, software engineering | 2025–2026 | Services and outcome-based |
| Infosys Cobalt | Cloud services, solutions and platforms with more than 35,000 cloud assets and industry blueprints across AWS, Azure, GCP and Oracle Cloud | Cloud migration and modernisation buyers | Aug 2020 | Services and assets |
| Infosys Polycloud / Cobalt Airports | Multi-cloud management platform and accelerators | Large multi-cloud enterprises | 2021 onward | Services |
| Infosys Live Enterprise Suite | Platforms for continuous adaptation (Live Enterprise, Live Operations) | Enterprise operations | 2,020 | Services |
| Infosys Cyber Next / Cyber Defense Centers | Managed detection and response, zero trust and identity services, delivered through 8 cyber defence centres in India, the US and Europe and 4,500+ cybersecurity professionals | All verticals | Ongoing; strengthened by The Missing Link (2025) | Managed services |
| Infosys Applied AI | Data science and machine-learning services and platforms | Analytics-led enterprises | 2020 onward | Services |
| Infosys Aster | AI-amplified marketing suite | CMOs | 2,024 | Services and assets |
| Infosys Meridian | Metaverse and immersive-experience offerings | Retail, manufacturing, training | 2,022 | Services |
| Infosys Cortex | AI-driven customer-service and contact-centre platform | Customer-service operations | 2,023 | Platform and services |
| Infosys Energy Transition Office / Sustainability services | Decarbonisation strategy, ESG data and reporting, and energy transition services | Energy, utilities, manufacturing | 2022 onward | Consulting |
| Infosys Equinox | Headless, microservices-based digital commerce platform (from the Skava acquisition) | Retail and B2B commerce | 2015; rebranded 2020 | Subscription and services |
| Infosys Wingspan / Lex | Enterprise learning platform | HR and L&D functions | 2,019 | Subscription |
Financial Services portfolio
| Offering | Description | Target customer | Latest | Pricing |
|---|---|---|---|---|
| Infosys Finacle (EdgeVerve) | Core banking, digital banking, payments, treasury, wealth and Islamic banking suite. Available on premises and as SaaS on Microsoft Azure; Investec moved to Finacle SaaS on Azure in Q2 FY27 | Retail, corporate and universal banks | Continuous releases; Finacle SaaS | Licence, AMC, subscription |
| Infosys McCamish | Policy administration, distribution and BPM for life insurance and annuities | US life insurers | Ongoing | Platform plus BPM |
| Stater | Mortgage servicing platform and BPM | Dutch, Belgian and German lenders | Ongoing | Transaction-based |
| Stratus (Guidewire practice) | Guidewire implementation and consulting for P&C insurers | P&C insurers | Acquired Apr 2026 | Services |
| Banking and capital-markets services | Core modernisation, KYC/AML agents, credit, payments modernisation, regulatory reporting | Banks, asset managers, payments firms | Ongoing | Services |
Engineering, semiconductor and product engineering
| Offering | Description | Target customer | Latest | Pricing |
|---|---|---|---|---|
| Infosys Engineering Services | Product design, embedded systems, PLM, digital twins, IoT and software-defined products | Manufacturing, hi-tech, medical devices | Ongoing | Services |
| InSemi semiconductor design services | End-to-end semiconductor design: circuit design and layout, RTL and ASIC design, physical design, verification, electronic and platform design, automation, embedded software. Supports Infosys' "chip-to-cloud" strategy | Semiconductor companies, consumer electronics, automotive, hi-tech OEMs | Founded 2013; acquired May 2024 with ~900 design specialists | Services (T&M and fixed-scope) |
| in-tech | Automotive software (software-defined vehicle, e-mobility, ADAS testing) and rail engineering | European automotive OEMs and Tier-1s | Acquired Jul 2024 | Services |
| Kaleidoscope Innovation | Product design, human factors and medical-device engineering | Medical devices, consumer products | Acquired 2020 | Services |
| Physical AI | Robotics, edge AI and industrial AI engineering, which management names as an AI-services growth vector | Manufacturing and energy | FY26–FY27 | Services |
Industry and function solutions
| Offering | Description | Target customer |
|---|---|---|
| Optimum Healthcare IT | Epic EHR implementation, optimisation and cloud migration, plus provider operations | US health systems and providers |
| Infosys Public Services | Systems integration and BPM for US federal, state and local government | US public sector |
| NHS BSA workforce solution | 15-year programme to replace the NHS electronic staff record and workforce management system | UK National Health Service |
| Infosys BPM | Finance and accounting, procurement (including HIPUS in Japan), HR, customer service and industry operations | Global enterprises |
| Panaya | SaaS change-impact analysis and test automation for SAP, Oracle and Salesforce | ERP owners |
| Infosys Consulting | Management and technology consulting, operating-model redesign, AI value consulting | C-suite |
| Versent Group | Cloud-native engineering and digital transformation for Australian enterprises and government | Australian government, education, financial services, energy, utilities |
| The Missing Link | Cybersecurity services and managed security | Australian enterprises |
| MRE Consulting | Energy trading and risk management consulting | Energy traders and utilities |
| Infosys Springboard | Free digital-skilling platform (CSR) that has reached 13.3 million learners over five years | Students and the public |
Packaged-application practices
Infosys runs large practices for SAP (including S/4HANA and SAP Commerce Cloud; NTN Corporation migrated in Q2 FY27), Oracle, Salesforce, ServiceNow, Workday, Microsoft Dynamics, Adobe, Guidewire and Epic. These are services practices built on partner software and are not separate products.
Financial Narrative
Income statement
FY24 DPS includes an ₹8 special dividend. FY26 EPS reflects the 11.0% growth reported in INR. FY26 IFRS operating margin was 20.3%. Excluding the one-time US$143 million (0.7% of revenue) gratuity charge from India's Labour Codes, notified on 21 November 2025, the adjusted margin was 21.0%.
Revenue CAGR FY22–FY26: 10.1% in INR and 5.4% in USD.
Gross profit and EBITDA. Infosys does not report EBITDA as a defined line item. Gross margin on an IFRS cost-of-sales basis was 31.5% in Q1 FY27 (gross profit of about US$1.60 billion on revenue of US$5,082 million). Profit before tax was ₹11,063 crore in Q2 FY27, up 8.2% from ₹10,229 crore a year earlier.
Commentary. The five-year record splits into two regimes. FY22–FY23 was a post-pandemic boom: constant-currency growth of 19.7% and 15.4%, with margins falling from the FY21 peak of 24.5% to 21.0% as wage inflation, attrition above 25% and a large fresher intake absorbed the gains. From FY24 to FY26, growth settled into a 1–4% constant-currency band while margins were held within the 20–22% guidance band. That margin discipline came from "Project Maximus", a margin-expansion programme covering pricing, automation, pyramid, subcontractor reduction and onsite mix; third-party costs fell 1 point of revenue and onsite mix fell 0.7 point in FY26.
Reported INR growth has run well ahead of constant currency, at 9.6% against 3.1% in FY26, because of sustained rupee depreciation. The rupee averaged about ₹88.6 to the dollar in FY26 and about ₹95.7 in Q2 FY27, which supports both reported revenue and margins. FY26 net profit growth of 10.2% was helped by reversals of income-tax provisions following tax orders; adjusted EPS growth was 12.1%.
Quarterly trajectory (last six quarters)
The Q3 FY26 reported margin of 18.4% includes the Labour Code charge. AI revenue share was first disclosed for Q3 FY26; the zero values for Q1–Q2 FY26 mark periods before disclosure and do not mean the company had no AI revenue. For Q4 FY26, management said only that AI revenue was above 5.5%.
H1 FY27 (six months to 30 September 2026): revenue ₹97,454 crore (up 12.3% in INR and 1.9% in constant currency); operating profit ₹20,494 crore (21.0% margin); net profit ₹15,592 crore (up 9.1%); basic EPS ₹38.51 (up 11.7%); free cash flow ₹17,949 crore (115% of net profit).
Balance sheet
Debt and net cash. Infosys has no borrowings. Its only debt-like obligations are lease liabilities on offices and data centres under Ind AS 116 and IFRS 16. Net cash was about US$4.5 billion at 31 March 2026, the company's own consolidated figure, after more than US$4 billion was returned to shareholders in FY26. Net debt/EBITDA is negative.
Commentary. Equity fell 12.6% in USD in FY26, entirely because of the ₹18,000 crore buyback and ₹48 per share of dividends. Goodwill and intangibles rose by ₹4,347 crore in H1 FY27 as Optimum, Stratus and other deals were consolidated, which is the source of the 50–70 basis points of amortisation drag management has flagged. Working capital is efficient: DSO including unbilled and net of unearned revenue was 78 days at the end of FY26, the lowest in seven years.
Cash flow and shareholder returns
Capital allocation policy. From FY25, Infosys aims to return about 85% of free cash flow cumulatively over a five-year period through semi-annual dividends, buybacks and/or special dividends. The FY26 buyback was a tender offer of 10 crore shares at ₹1,800 per share, with record date 14 November 2025. The offer opened on 20 November 2025 and was completed in December 2025.
Capex. Capex covers campuses, data centres and technology infrastructure. It typically runs at 1.5–2.5% of revenue, and the gap between operating cash flow and free cash flow has stayed narrow throughout the period.
Ratios
Ratio commentary. Returns on capital are structurally high because the business is asset-light and holds no debt. ROE improved in FY26 mainly because the buyback reduced the equity base. Cash conversion has stayed above 100% for several years and is among the strongest in the peer group.
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Segment Overview
| Segment | Scope |
|---|---|
Financial Services | Banking, capital markets, payments and insurance; includes Finacle and McCamish |
Manufacturing | Discrete and process manufacturing, automotive, aerospace and industrial; much of engineering services and in-tech |
Energy, Utilities, Resources & Services (EURS) | Oil and gas, utilities, mining, and services industries; includes the 2025 MRE Consulting energy-trading acquisition |
Retail | Retail, consumer packaged goods and logistics |
Communication | Telecom, media and entertainment |
Hi-Tech | Software, platform, semiconductor and hi-tech product companies; home of much semiconductor and InSemi engineering work |
Life Sciences | Pharma, biotech, medical devices and healthcare (Optimum Healthcare IT added from May 2026) |
All other segments | India, Japan and China businesses, Infosys Public Services and identified public-services enterprises |
Segment revenue (INR Cr)
| Segment revenue (INR Cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
Financial Services | 42,158 | 45,175 | 49,908 |
Manufacturing | 22,298 | 25,207 | 29,078 |
Energy, Utilities, Resources & Services | 20,035 | 21,710 | 23,818 |
Retail | 22,504 | 22,059 | 23,077 |
Communication | 17,991 | 19,108 | 21,765 |
Hi-Tech | 12,411 | 13,090 | 13,928 |
Life Sciences | 11,515 | 11,831 | 12,267 |
All other segments | 4,758 | 4,810 | 4,809 |
Total revenue | 153,670 | 162,990 | 178,650 |
Segment growth INR (%)
| Segment growth INR (%) | FY25 | FY26 |
|---|---|---|
Financial Services | 7.2 | 10.5 |
Manufacturing | 13.0 | 15.4 |
Energy, Utilities, Resources & Services | 8.4 | 9.7 |
Retail | -2.0 | 4.6 |
Communication | 6.2 | 13.9 |
Hi-Tech | 5.5 | 6.4 |
Life Sciences | 2.7 | 3.7 |
All other segments | 1.1 | 0.0 |
Segment profit (INR Cr)
| Segment profit (INR Cr) | FY25 | FY26 |
|---|---|---|
Financial Services | 11,099 | 12,678 |
Manufacturing | 4,856 | 6,444 |
Energy, Utilities, Resources & Services | 6,097 | 5,984 |
Retail | 7,133 | 7,089 |
Communication | 3,341 | 3,861 |
Hi-Tech | 3,220 | 3,228 |
Life Sciences | 2,663 | 2,444 |
All other segments | 827 | 717 |
Segment margin (%)
| Segment margin (%) | FY25 | FY26 |
|---|---|---|
Financial Services | 24.6 | 25.4 |
Manufacturing | 19.3 | 22.2 |
Energy, Utilities, Resources & Services | 28.1 | 25.1 |
Retail | 32.3 | 30.7 |
Communication | 17.5 | 17.7 |
Hi-Tech | 24.6 | 23.2 |
Life Sciences | 22.5 | 19.9 |
All other segments | 17.2 | 14.9 |
Share of revenue (%)
| Share of revenue (%) | FY24 | FY25 | FY26 |
|---|---|---|---|
Financial Services | 27.4 | 27.7 | 27.9 |
Manufacturing | 14.5 | 15.5 | 16.3 |
Energy, Utilities, Resources & Services | 13.0 | 13.3 | 13.3 |
Retail | 14.6 | 13.5 | 12.9 |
Communication | 11.7 | 11.7 | 12.2 |
Hi-Tech | 8.1 | 8.0 | 7.8 |
Life Sciences | 7.5 | 7.3 | 6.9 |
All other segments | 3.1 | 3.0 | 2.7 |
Group Entities
| Entity | Ownership | Function |
|---|---|---|
Infosys BPM Limited | 100% | Business process management |
EdgeVerve Systems Limited | 100% | Finacle and enterprise AI/automation products |
Infosys McCamish Systems LLC | 100% | Insurance and annuity platforms and BPM (US) |
Infosys Public Services, Inc. | 100% | US public-sector services |
Infosys Consulting (various) | 100% | Management consulting |
Panaya Ltd. | 100% | SaaS change-impact analysis and testing for ERP |
Stater N.V. | 75% | Mortgage servicing platform and BPM (Netherlands) |
HIPUS Co., Ltd. | Majority-owned JV with Hitachi, Panasonic and Pasona | Procurement BPM (Japan) |
Infosys Compaz Pte. Ltd. | 60% JV with Temasek | IT services (Singapore) |
in-tech Holding GmbH | 100% | Automotive and rail engineering R&D (Germany) |
InSemi Technology Services | 100% | Semiconductor design and embedded services (India) |
Versent Group | 75% (Telstra 25%) | Cloud and digital transformation (Australia) |
The Missing Link | 100% | Cybersecurity (Australia) |
Optimum Healthcare IT | 100% (via Infosys Nova Holdings LLC) | Healthcare provider IT and Epic services (US) |
Stratus Global LLC | 100% (via Infosys Nova Holdings LLC) | Guidewire P&C insurance technology (US) |
Income Statement and Margin Analysis (%)
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
Revenue (INR Cr) | 121,641 | 146,767 | 153,670 | 162,990 | 178,650 |
Revenue (USD Mn) | 16,311 | 18,212 | 18,562 | 19,277 | 20,158 |
Revenue growth INR (%) | 21.0 | 20.7 | 4.7 | 6.1 | 9.6 |
Revenue growth constant currency (%) | 19.7 | 15.4 | 1.4 | 4.2 | 3.1 |
Operating profit (INR Cr) | 28,015 | 30,881 | 31,739 | 34,424 | 36,254 |
Operating margin reported (%) | 23.0 | 21.0 | 20.7 | 21.1 | 20.3 |
Net profit attributable (INR Cr) | 22,110 | 24,095 | 26,233 | 26,713 | 29,440 |
Net profit attributable (USD Mn) | 2,963 | 2,983 | 3,169 | 3,155 | 3,313 |
Net margin INR (%) | 18.2 | 16.4 | 17.1 | 16.4 | 16.5 |
Basic EPS (INR) | 52.52 | 57.63 | 63.39 | 64.50 | 71.60 |
Basic EPS (USD) | 0.70 | 0.71 | 0.77 | 0.76 | 0.81 |
Dividend per share (INR) | 31 | 34 | 46 | 43 | 48 |
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View Subscription PlansIncome Statement and Margin Analysis (%) (Quarterly)
| Metric | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|---|---|
Revenue (INR Cr) | 42,279 | 44,490 | 45,479 | 46,402 | 48,211 | 49,244 |
Revenue (USD Mn) | 4,941 | 5,076 | 5,101 | 5,040 | 5,082 | 5,145 |
Constant currency YoY growth (%) | 3.8 | 2.9 | 1.7 | 4.1 | 2.4 | 1.5 |
Operating margin reported (%) | 20.8 | 21.0 | 18.4 | 20.9 | 21.1 | 21.0 |
Net profit attributable (INR Cr) | 6,921 | 7,364 | 6,666 | 8,501 | 7,769 | 7,823 |
Large-deal TCV (USD Bn) | 3.8 | 3.1 | 4.8 | 3.2 | 3.6 | 5.2 |
AI revenue share (%) | 0 | 0 | 5.5 | 5.5 | 8.2 | 10.5 |
Balance Sheet
| Metric (USD Mn) | FY25 | FY26 |
|---|---|---|
Cash and cash equivalents | 2,861 | 2,341 |
Current investments | 1,460 | 1,365 |
Non-current investments | 1,294 | 942 |
Total cash and investments | 5,615 | 4,648 |
Total assets | 17,419 | 16,446 |
Total equity | 11,255 | 9,840 |
Equity attributable to shareholders | 11,205 | 9,786 |
Balance Sheet (Mar-2026–Sep-2026)
| Metric (INR Cr) | Mar-2026 | Sep-2026 |
|---|---|---|
Cash and cash equivalents | 22,201 | 24,350 |
Current investments | 12,950 | 13,761 |
Non-current investments | 8,930 | 8,390 |
Goodwill and intangible assets | 14,942 | 19,289 |
Trade receivables | 35,234 | 34,821 |
Unbilled revenue (current) | 15,483 | 16,609 |
Total assets | 155,967 | 163,480 |
Total liabilities | 62,670 | 63,937 |
Total equity | 93,297 | 99,543 |
Dividends & Capital Returns and Per-Share Data
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
Share buyback (INR Cr) | 9,200 | 9,300 | 0 | 0 | 18,000 |
Dividend per share (INR) | 31 | 34 | 46 | 43 | 48 |
Cash-flow metric | Value | — | — | — | — |
FY26 free cash flow (reported, USD) | US$3,733 million (112.6% of net profit) | — | — | — | — |
FY26 free cash flow (adjusted, USD) | about US$3.5 billion (106% of net profit) | — | — | — | — |
Q4 FY26 free cash flow (adjusted) | US$882 million (111% of net profit) | — | — | — | — |
Q1 FY27 free cash flow | US$955 million (over 116% of net profit) | — | — | — | — |
Q2 FY27 free cash flow | ₹8,898 crore / about US$928 million (113.5% of net profit) | — | — | — | — |
FY26 total returned to shareholders | over ₹37,500 crore (over US$4 billion), including dividends and the buyback | — | — | — | — |
Financial Analysis
| Ratio | Value | Basis |
|---|---|---|
Return on equity | 31.6% | FY26, company-reported |
Return on assets | about 19% | FY26 net profit / average total assets |
Yield on cash and investments | 6.7% (FY26); 6.2% (Q4 FY26) | Company-reported |
Debt / equity | 0.0x (no borrowings) | 31 Mar 2026 |
Net debt / EBITDA | negative (net cash) | 31 Mar 2026 |
Interest coverage | not meaningful (no borrowings; interest relates to leases) | FY26 |
Asset turnover | about 1.1x | FY26 revenue / average total assets |
DSO (incl. unbilled, net of unearned) | 78 days | Q4 FY26 |
Cash conversion (FCF / net profit) | 112.6% reported; 106% adjusted | FY26 |
Utilisation excluding trainees | 84.4% (FY26); 83.0% (Q4 FY26) | Company-reported |
Effective tax rate guidance | 29–30% | FY27 |
Region share (%)
| Region share (%) | FY25 | FY26 |
|---|---|---|
North America | 57.9 | 56.1 |
Europe | 29.8 | 32.1 |
Rest of the World | 9.2 | 8.9 |
India | 3.1 | 2.9 |
Region revenue (USD Mn)
| Region revenue (USD Mn) | FY25 | FY26 |
|---|---|---|
North America | 11,161 | 11,309 |
Europe | 5,745 | 6,471 |
Rest of the World | 1,773 | 1,794 |
India | 598 | 585 |
Valuation Snapshot
| Metric | Value |
|---|---|
NSE close, 23 Oct 2026 | ₹1,153.80 |
52-week high | ₹1,728.00 (3 Feb 2026) |
52-week low | ₹982.40 (1 Jul 2026) |
Year-to-date 2026 | down about 28% (as of late October 2026) |
Rebound from July low | about 17% |
NYSE ADS range | about US$12–14 in Q3–Q4 2026 |
Approximate 1-year return | about −25% (from about ₹1,549 in mid-November 2025) |
Approximate 3-year return | about −17% |
Approximate 5-year return | about −32% |
Valuation Snapshot by Multiple
| Multiple | Value |
|---|---|
Market capitalisation | about ₹4.68 lakh crore (about US$49 billion) |
Enterprise value | about ₹4.22 lakh crore (net of about ₹46,500 crore of cash and investments) |
P/E (trailing) | about 15x |
P/E (FY27E consensus) | about 14–15x |
EV / Sales (trailing) | about 2.2x |
EV / EBITDA (trailing) | about 10x |
P / B | about 4.7x |
Dividend yield | about 4% (FY26 DPS ₹48 plus FY27 interim ₹26) |
Per-Share Data and Dividends & Capital Returns
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
Dividend per share (INR) | 31 | 34 | 46 | 43 | 48 |
Buyback (INR Cr) | 9,200 | 9,300 | 0 | 0 | 18,000 |
Capital Programmes
| Programme | Approved | Size | Mode | Price | Status |
|---|---|---|---|---|---|
| 2,021 | Apr 2021 | ₹9,200 crore | Open market | max ₹1,750 | Completed Sep 2021 |
| 2,022 | Oct 2022 | ₹9,300 crore | Open market | max ₹1,850 | Completed Feb 2023 |
| 2,025 | 11 Sep 2025 | ₹18,000 crore (10 crore shares) | Tender offer | ₹1,800 | Completed Dec 2025 |
Analyst Conclusions
Management guidance (FY27, as of 23 October 2026)
| Item | Guidance |
|---|---|
| Revenue growth (constant currency) | 1.0–2.0% |
| Operating margin | 20.0–22.0% |
| Effective tax rate | 29–30% |
| Fresher hiring | about 20,000 |
| H1 FY27 actual | 1.9% constant-currency growth; 21.0% margin |
Revenue growth (constant currency): Guidance: 1.0–2.0%
Operating margin: Guidance: 20.0–22.0%
Effective tax rate: Guidance: 29–30%
Fresher hiring: Guidance: about 20,000
H1 FY27 actual: Guidance: 1.9% constant-currency growth; 21.0% margin
Delivering the 1–2% band requires only modest sequential growth in H2 FY27, so the guidance looks conservative. However, Q3 includes furlough seasonality, and the Q2 mega deal of over US$2 billion will ramp only gradually.
Consensus expectations
Brokerage forecasts made after Q1 FY27 (Prabhudas Lilladher, Anand Rathi) put FY27 revenue at about ₹1.92–1.95 lakh crore and FY28 at about ₹2.02–2.07 lakh crore. That implies high-single-digit INR growth driven mainly by currency, with low-single-digit constant-currency growth. Analysts expect EPS to grow at a high-single to low-double-digit annual rate from FY26 to FY28, helped by the share count reduction.
Bull case
-
AI revenue becomes the growth engine. AI services rose from 5.5% to 10.5% of revenue in three quarters. If the 20–30% quarterly growth continues even partly, AI work could more than offset legacy compression by FY28.
-
Bookings far exceed current revenue. Large-deal TCV of US$8.8 billion in H1 FY27, including a mega deal above US$2 billion, plus a trailing-twelve-month TCV run-rate near US$17 billion, point to a revenue re-acceleration in FY28 once the European manufacturing headwind annualises.
-
Valuation cushion. About 15x trailing P/E, a dividend yield near 4%, net cash of about US$4.5 billion and 85% FCF payout give an unusually strong floor for a 31.6%-ROE franchise.
Bear case
-
Organic stagnation. Excluding about 1.7 points of acquired revenue, FY27 organic growth is roughly zero. Volumes were flat in FY26 and headcount is shrinking, so the core is ex-growth.
-
Persistent AI deflation. Gartner is shifting budgets away from services, and Infosys is passing AI productivity gains to clients. Revenue per unit of work may keep falling faster than new AI demand replaces it.
-
Accumulating event risk. The CEO transition (April 2027), the TriZetto litigation, the DOJ H-1B inquiry, the GST dispute and acquisition margin dilution of about 70 basis points all fall within the next 12–18 months.
Key catalysts and monitorables (next 12 months)
| Timing | Catalyst / monitorable |
|---|---|
| Mid-Jan 2027 | Q3 FY27 results: H2 run-rate, AI revenue share, guidance narrowing |
| Q4 FY27 | Ramp of the Q2 FY27 mega deal (over US$2 billion) and the NHS programme |
| 1 Apr 2027 | Ashiss Kumar Dash becomes CEO & MD; watch for strategy and organisational changes |
| Mid-Apr 2027 | FY28 guidance, the first under the new CEO |
| Ongoing | AI revenue share trajectory (10.5% in Q2 FY27) |
| Ongoing | Cognizant TriZetto litigation milestones (depositions, summary judgment) |
| Ongoing | US immigration policy and the DOJ H-1B inquiry |
| Ongoing | FII flows and any new buyback announcement under the 85% FCF policy |
| Ongoing | Integration of Optimum, Stratus and Versent; margin dilution versus the 70 basis-point estimate |
| Ongoing | INR/USD trajectory as a reported-margin tailwind |
Mid-Jan 2027: Catalyst / monitorable: Q3 FY27 results: H2 run-rate, AI revenue share, guidance narrowing
Q4 FY27: Catalyst / monitorable: Ramp of the Q2 FY27 mega deal (over US$2 billion) and the NHS programme
1 Apr 2027: Catalyst / monitorable: Ashiss Kumar Dash becomes CEO & MD; watch for strategy and organisational changes
Mid-Apr 2027: Catalyst / monitorable: FY28 guidance, the first under the new CEO
Ongoing: Catalyst / monitorable: AI revenue share trajectory (10.5% in Q2 FY27)
Ongoing: Catalyst / monitorable: Cognizant TriZetto litigation milestones (depositions, summary judgment)
Ongoing: Catalyst / monitorable: US immigration policy and the DOJ H-1B inquiry
Ongoing: Catalyst / monitorable: FII flows and any new buyback announcement under the 85% FCF policy
Ongoing: Catalyst / monitorable: Integration of Optimum, Stratus and Versent; margin dilution versus the 70 basis-point estimate
Ongoing: Catalyst / monitorable: INR/USD trajectory as a reported-margin tailwind
Analyst verdict
Infosys enters the final months of Salil Parekh's tenure with a contradiction that defines the investment case. Commercially it has rarely been stronger. FY26 large-deal TCV of US$14.9 billion was 28% higher than the year before, and Q2 FY27 added US$5.2 billion more, including a mega deal of over US$2 billion. The AI revenue share almost doubled in three quarters to 10.5%. Partnerships with Anthropic, OpenAI and the agentic-coding vendors put the company at the frontier of enterprise AI delivery. Financially it remains a model of discipline: operating margins of about 21% through a cycle that pushed peers below 18%, more than 100% cash conversion, no debt, and more than US$4 billion returned to shareholders in a single year.
Yet the core engine has stopped growing. FY27 guidance of 1–2% in constant currency, cut twice within six months, implies organic growth of about zero once acquisitions are removed. FY26 growth came from pricing rather than volume. Headcount is shrinking, and management openly concedes that AI is compressing parts of the legacy portfolio. Gartner's latest forecasts show enterprise budgets moving from services to AI infrastructure, which is a structural rather than cyclical challenge.
On balance, the market at about 15x trailing earnings is pricing Infosys as a melting asset. The evidence instead points to a high-quality franchise in a transition whose timing is uncertain but whose direction is improving. Record bookings and AI share gains are leading indicators, and revenue usually follows them within 12–24 months. The near-zero organic growth, by contrast, reflects one large client termination and a cautious macro backdrop. The most likely path is that growth bottoms in FY27 and recovers to mid-single digits in FY28 as the mega deals ramp, with margins held at 20–22% and shareholder returns sustained.
The key risks are AI deflation outrunning AI demand, adverse developments in the TriZetto litigation, and execution slippage during the CEO handover. Since the successor is a 31-year insider, the transition is more likely to bring continuity than upheaval. The most important single monitorable is the FY28 guidance due in April 2027. If it confirms re-acceleration, today's valuation will look like the cyclical low it currently appears to be. If it does not, Infosys risks a lasting re-rating to a lower-growth, utility-style multiple.
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Executive Leadership Team
| Name | Title | In role since | Prior roles | Education |
|---|---|---|---|---|
Salil S. Parekh (age 62) | CEO & Managing Director | 2 Jan 2018 (term ends 31 Mar 2027) | Member of the Group Executive Board at Capgemini; nearly 25 years at Capgemini, Sogeti and Ernst & Young | B.Tech, Aeronautical Engineering, IIT Bombay; M.Eng (Computer Science and Mechanical Engineering), Cornell University |
Ashiss Kumar Dash | CEO-Designate (CEO & MD from 1 Apr 2027, subject to shareholder approval) | 23 Jul 2026 | 31-year Infosys veteran; EVP and Global Head of Services, Utilities, Resources, Energy (SURE) and Enterprise Sustainability; senior roles across client businesses, delivery and global operations | IIT Kharagpur |
Jayesh Sanghrajka | Chief Financial Officer (KMP) | 1 Apr 2024 | Long-serving Infosys finance leader, previously EVP and Deputy CFO | Chartered Accountant |
A. G. S. Manikantha | Company Secretary and Compliance Officer (KMP) | 2019 | Long-serving member of the Infosys secretarial function | Company Secretary |
Inderpreet Sawhney | Group General Counsel and Chief Compliance Officer | 2017 | General Counsel, Wipro | Law |
Shaji Mathew | EVP and Group Head of Human Resources | 2023 | Senior delivery and HR leadership at Infosys | — |
Dinesh R. | EVP and Co-Delivery Head | Ongoing | Infosys delivery leadership; sponsor of the InSemi acquisition | — |
Satish H. C. | EVP and Co-Delivery Head | Ongoing | Infosys delivery leadership | — |
Mitrankur Majumdar | EVP and Global Head, SURE | 2026 | About three decades at Infosys; succeeded Dash in the SURE role | — |
Rafee Tarafdar | EVP and Chief Technology Officer | Ongoing | Head of Infosys strategic technology group | — |
Dennis Gada | EVP and Global Head, Financial Services | Ongoing | Infosys financial services leadership | — |
Directors' Remuneration
| Component (INR Cr) | FY26 |
|---|---|
Base salary | 7.97 |
Retiral and other benefits | 0.53 |
Performance-linked variable pay and incentives | 23.35 |
Perquisite value of RSUs and stock incentives exercised | 50.75 |
Total remuneration | 82.60 |
Metric | FY25 |
CEO total remuneration (INR Cr) | 80.6 |
Median employee remuneration (INR) | 1,072,008 |
Board of Directors
| Director | Category | Background |
|---|---|---|
Nandan M. Nilekani (age 71) | Non-Executive, Non-Independent Chairman (since 24 Aug 2017); co-founder and promoter | Co-founder; CEO 2002–2007; founding Chairman of UIDAI (Aadhaar) 2009–2014; B.Tech Electrical Engineering, IIT Bombay |
Salil S. Parekh | Executive Director (CEO & MD) | See above |
D. Sundaram | Lead Independent Director | Former Vice Chairman and CFO, Hindustan Unilever |
Bobby Parikh | Independent Director | Chartered accountant; founder of Bobby Parikh Associates; former CEO of Ernst & Young India |
Chitra Nayak | Independent Director | Technology and go-to-market executive (Comverge, Salesforce, GE) |
Govind Vaidiram Iyer | Independent Director | Former Managing Partner, Egon Zehnder India; leadership advisory |
Helene Auriol Potier | Independent Director | Former executive at Dimension Data, Orange and Microsoft in Europe and Asia |
Nitin Paranjpe | Independent Director | Non-Executive Chairman, Hindustan Unilever; former Unilever COO |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
23 Jul 2026 | Ashiss Kumar Dash named CEO-Designate; Salil Parekh to step down on 31 Mar 2027 when his second term ends | An internal succession that followed investor concern after the FY26 annual report and AGM notice were silent on Parekh's future. HFS Research called it a deliberate rather than reactive change |
| 2026 | Mitrankur Majumdar appointed EVP and Global Head, SURE | Backfills Dash's vertical role |
1 Apr 2024 | Jayesh Sanghrajka became CFO | Replaced Nilanjan Roy, who resigned in December 2023 |
Mar 2023 | President Mohit Joshi resigned to become CEO of Tech Mahindra | Second senior President exit in six months |
Oct 2022 | President Ravi Kumar S. resigned and later became Cognizant CEO | Ravi Kumar is now a named figure in the Cognizant–Infosys TriZetto litigation |
Major Shareholders
| Shareholder category | % of equity |
|---|---|
Promoters and promoter group (founders and families) | 13.90 |
Foreign institutional / portfolio investors | 27.44 |
Mutual funds | 22.96 |
Insurance companies | 16.02 |
Other domestic institutions | 3.89 |
Retail and other public | 15.78 |
Others | 0.01 |
Total | 100.00 |
Competitive Landscape
Competitors by Segment
| Segment / capability | Principal competitors |
|---|---|
Application and digital transformation services | Accenture, Tata Consultancy Services (TCS), Cognizant, Capgemini, HCLTech, Wipro, IBM Consulting, Deloitte, NTT DATA |
Mid-tier and specialist digital | LTIMindtree, Tech Mahindra, EPAM Systems, Globant, Persistent Systems, Coforge |
Infrastructure and managed services | HCLTech, Kyndryl, DXC Technology, TCS, NTT DATA |
Engineering R&D and semiconductor design | HCLTech (ER&D), L&T Technology Services, Tata Elxsi, Cyient, Wipro (Eximius), Capgemini Engineering, Alten, Akkodis, Quest Global |
Banking software (Finacle) | Temenos, Oracle FSS (Flexcube), TCS BaNCS, FIS, Fiserv, Thought Machine, Mambu |
Healthcare payer/provider IT | Cognizant (TriZetto), Accenture, Deloitte, Optum, NTT DATA |
BPM | Genpact, TCS, Accenture Operations, WNS (Capgemini), Concentrix |
Peer Comparison FY2025
| Company | Fiscal year | Revenue (USD Bn) | Growth (constant currency, %) | Operating margin (%) |
|---|---|---|---|---|
Infosys | FY25 (Mar 2025) | 19.28 | 4.2 | 21.1 |
Accenture | FY25 (Aug 2025) | 69.7 | about 7 (local currency) | about 15.6 (adjusted) |
TCS | FY25 (Mar 2025) | 30.18 | 4.2 | 24.3 |
Cognizant | CY2024 | 19.74 | about 2 | 15.3 (adjusted) |
HCLTech | FY25 (Mar 2025) | 13.84 | 4.7 | 18.3 |
Wipro (IT services) | FY25 (Mar 2025) | 10.51 | −2.3 | 17.1 (adjusted) |
