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Informist, Thursday, Oct. 16, 2025

 

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--Infosys: Majority of co's employees in US don't need immigration support
--CONTEXT: Comments by mgmt of Infosys in post-earnings press call
--Infosys: Second half of a financial year is typically slower for co
--Infosys: Manufacturing, fincl services saw good performance in Q2
--Infosys: Well positioned to help clients in their enterprise AI projects
--Infosys: Looking at acquisitions; have good pipeline
--Infosys: Macroeconomic environment still remains uncertain
--Infosys: Hired 12,000 freshers in first half of FY26
--Infosys: Well on track to hire around 20,000 freshers in FY26
--Infosys: See good deal pipeline in financial svcs, mfg, retail segments
--Infosys: Large deal pipeline remains very strong
--Infosys: Co's capital return policy decides view on share buybacks
--Infosys: Acquisitions will not be main driver of co's growth

 

By Anand JC and Anjana Therese Antony

 

NEW DELHI/MUMBAI – Infosys Ltd. Thursday said that despite lingering uncertainty in the market, the company's large deal pipeline is strong as its clients focus on cost optimisation and consolidation. "Clients are benefiting from consolidation plays on automation and on using artificial intelligence for efficiency," Infosys Managing Director and Chief Executive Officer Salil Parekh told reporters at a post-earnings press conference.

 

The company reported a consolidated net profit of INR 73.64 billion on a revenue of INR 444.90 billion for the September quarter. It retained its operating margin guidance of 20-22% for the financial year 2025-26 (Apr-Mar).

 

"If you look at the commentary last time when we gave a guidance, we very clearly said that the upper end of the guidance is where we are expecting stability in the environment and the lower end of the guidance is where we are expecting worsening in the environment," Infosys Chief Financial Officer Jayesh Sanghrajka said. 

 

The company saw good performance in the manufacturing and financial services verticals in the September quarter. Infosys earns nearly 28% of its revenue from the financial services segment, which recorded growth of 5.6% on year in the September quarter. The manufacturing segment, which accounts for roughly 17% of its revenues, recorded growth of just over 9% on year.

 

The retail segment contributed almost 13% to the company's top line for the September quarter. Revenues from the segment fell 1% in this period. "We still see constraints in retail. We do see a good pipeline there, and we will see how that plays out in the coming quarters," Parekh said. 

 

On the H-1B visa programme, Infosys said only a minority of its workforce in the US requires the company's sponsorship for immigration. US President Donald Trump recently signed an executive order increasing the fee for applicants to the H-1B visa programme, which is aimed at attracting skilled foreign workers into the US. India was the largest beneficiary of H-1B visas in 2024 with applicants from the country accounting for just over 71% of approved applications, followed by China at around 12%, according to media reports.

 

"We have built a large number of centres and hubs which are focused on digital, on innovation, on technology, and AI (artificial intelligence) in the US," Parekh said. "We have relationships with universities and 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."

 

Infosys increased its revenue growth guidance for FY26 to 2-3% from 1-3% previously. "Typically, the second half of the year is slower than the first half, that's the normal pattern. We have seen good traction, and that's how we have actually increased the guidance," Parekh said. 

 

The company is scaling up its artificial intelligence operations, especially in the enterprise space where it sees plenty of opportunities. "We are doing a lot of projects on enterprise AI with clients on growth, which is focused in the sales function or marketing function, on cost, which is focused on many of their processes, optimising them on customer service, on code development," Parekh said.

 

In August, Infosys had announced that it would acquire 75% shareholding in Australia-based Versent Group. The transaction, which is expected to be completed in the second half of FY26, is currently going through the regulatory approval process. "We are very much looking at other acquisitions, we have a good pipeline," the chief executive officer said. "We don't know when they will materialise, but there are some opportunities there which we are looking at." For its growth prospects, the company's primary focus will be on ensuring that its businesses grow well organically.

 

Infosys hired over 12,000 freshers in the first half of FY26. "We had given a guidance in terms of the fresh hiring for the year, and we had said 15,000 to 20,000," Sanghrajka said. "So, we are well on track to hire close to 20,000 this year."

 

The company had announced its largest-ever share buyback programme for INR 180 billion on Sept. 11 at a price of INR 1,800 per share. "We have a capital return policy," Parekh said, "that guides all of our decision-making. We have a policy where we return 85% of our free cash flow over a five-year period." Infosys is seeking shareholder approval for the buyback programme, and the postal ballot is currently active.

 

Infosys reported its September quarter earnings after the markets closed for the day. Thursday, its shares closed slightly lower on the National Stock Exchange at INR 1,471.50 apiece.   End

 

Edited by Rajeev Pai

 

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