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Informist, Thursday, Apr. 23, 2026

By Arya S. Biju and Astha Oriel

MUMBAI – Information technology major Infosys Ltd. expects to hire around 20,000 freshers in 2026-27 (Apr-Mar), similar to FY26, its management said at the post-earnings conference call with analysts Thursday. "We have a model which does some of it (hiring freshers) at one particular time and the rest of it throughout the year," a top company official said.

"We think 20,000 looks like a good place to start. We still have, at least on the lookout for this quarter and next quarter, very good demand for people which are coming at higher levels, lateral recruitment," the official said. As of Mar. 31, Infosys had a headcount of 328,594 employees, lower than the 337,034 employees as of Dec. 31 but higher than 323,578 employees in the corresponding quarter a year ago. 

Going forward, Infosys expects its subcontract employee count to remain in similar levels in near term, while in the medium term it expects the count to go down. "So typically, you know, we use subcons (subcontract employees) to meet the demand, because if it comes in immediately, we don't have the requirements, etc. And then we backfill that through the employees, and that's the cycle that goes on," a company official said. 

On FY27 wage hike plans, the company management said it has not decided on the timeline yet and would consider multiple factors such as level of attrition, the market scenario and inflation among others while deciding on wage hikes for the year. Infosys' last 12 month voluntary attrition improved 30 basis points sequentially but declined 150 bps on year to 12.6% as of Mar. 31.     

The IT company expects its revenue growth in the ongoing financial year to be supported by higher growth in the financial services, energy, and utilities verticals. Earlier in the day, the company announced revenue growth guidance of 1.5–3.5% in constant currency terms and an operating margin guidance of 20-22% for FY27. 

In FY26, revenue from the financial services grew above the company average at 4.4%, led by ramp-up of large-deals and continued momentum in AI-led transformation, legacy modernisation, and vendor consolidation, the company's management said. "Overall market sentiment remains positive, resulting in continued consumer spending across US banking, capital markets, and Europe. FY26 budgets are expected to grow in the US," a company official said. In contrast, clients in the manufacturing segment remain cautious amid softer demand, particularly in automotive and parts of Europe. Further, there is continued uncertainty on account of tariffs and ongoing West Asia war, which is resulting into delayed decision-making by clients, the official said. 

In energy space, Infosys sees increased outsourcing, leading to heavy deal momentum for the company. Meanwhile, "utilities demand is structurally higher, driven by grid constraints, renewable integration, and acceleration electricity needs for data centers," a company official said.

However, the company expects its revenue in the near term and FY27 to be impacted by low revenue from one large European client. The company has factored in a 75-100 bps impact from this on its revenue guidance for FY27. The company also bakes in a 75–100 bps reduction in on-site mix and expects its FY27 third-party costs to remain similar to the levels in FY26.

Post-market hours Thursday, Infosys reported consolidated net profit of INR 85.01 billion for the March quarter, up around 28% sequentially and well above the analysts' estimate of INR 75.56 billion. Its consolidated revenue rose 2% sequentially to INR 464.02 billion, slightly below the consensus view of INR 465.79 billion. Ahead of the earnings, shares of the company closed over 2% lower at INR 1,240.60 on the National Stock Exchange.  End

Edited by Akul Nishant Akhoury

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