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Informist, Thursday, Apr. 23, 2026

 

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--Infosys: Expect growth in financial services, energy utility verticals FY27 
--CONTEXT: Infosys management's comments at post-earnings press conference 
--Infosys: Expect to hire 20,000 freshers in FY27 
--Infosys: Q4 margin reflects higher investments, absorbed higher costs 
--Infosys: Haven't yet decided on wage hike cycle, quantum 
--Infosys: Challenges in auto vertical baked into margin guidance for FY27 
--Infosys: Have a good pipeline for acquisitions going forward 

 

MUMBAI – Infosys Ltd. Thursday said it expects its revenue to grow 1.5-3.5% in constant currency for 2026-27 (Apr-Mar), mainly led by an accelerated growth in financial services and energy, utility, resources and services verticals. The company is already seeing growth in these verticals and expects momentum to pick up going forward, Chief Executive Officer Salil Parekh said at a post-earnings press conference Thursday.

 

"Manufacturing per se is going through a challenging environment, especially the European automobile sector," Chief Financial Officer Jayesh Sanghrajka said. "And within that, we do have certain headwinds from a particular client, which will wind down towards the end of the year. That is baked in in the guidance right now."

 

The demand scenario across sectors and verticals has remained more or less unchanged from the projections made at the company's AI Investor Day held on Feb. 17, Parekh said. Infosys reported a consolidated net profit of INR 85.01 billion for the March quarter – above analysts' projections – and a revenue of INR 464.02 billion – below Street's expectations.

Infosys reported a consolidated operating margin of 20.9% in the March quarter. The margin includes the impact of acquisition-related amortisation which was partially offset by currency benefit. "This year, while we have maintained margins at 21%, I think we have absorbed a lot of headwinds and we have also invested a lot in the business," Sanghrajka said.

 

The company is in a "good position" when it comes to the order pipeline, Parekh said. "Look at manufacturing, telco, there are large programs in the pipeline...," he said. "We are also seeing a lot of discussions with clients which are a combination of tech services and operations type of businesses."

 

Infosys also has a "good" pipeline for acquisitions going forward, the CEO said. "We are looking (at more acquisitions)...healthcare, we see a good market, we have a good business, we think we can do more. So it was a good way to expand," Parekh said. Additionally, the Bengaluru-based technology major is also "very keen" on expanding its presence in the insurance space. However, even without acquisitions, Infosys expects to see growth in 2026-27 (Apr-Mar). 

 

Infosys ended the March quarter with 328,594 employees, lower than 337,034 as of Dec. 31 but higher than 323,578 employees in the year-ago quarter. "There's always some quarterly seasonality, headcount is a function of the number of people that you have, the utilisation that you have, the volumes that you see," Sanghrajka said. "If you look at this quarter, the volumes were softer and utilisation was lower, that is where our result in headcount is lower," he said. Infosys expects to hire at least 20,000 freshers in FY27, similar to FY26.

 

The pricing environment remained stable in the March quarter for Infosys, Sanghrajka said. "Actually, most of our growth this year has been pricing-led because the volumes have been softer. And that, in a way, corroborates with the fact that the AI revenue are coming at a better pricing," he said.

 

Analysts had expected Infosys' visa costs to inch up in the March quarter, but the company said costs remained stable. The company has not yet finalised its wage hike cycle and the quantum of the hikes.

 

Infosys reported its March quarter earnings after market hours. Thursday, its shares closed 2.2% lower at INR 1,240.60 on the National Stock Exchange.   End

 

Reported by Anand JC and Arya S. Biju

Edited by Tanima Banerjee

 

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