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Informist, Wednesday, Jan. 14, 2026

 

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--Infosys: See good traction in large deals in financial services segment 
--CONTEXT: Comments by Infosys management in post-earnings analyst concall 
--Infosys: Challenges continue in automotive sector 
--Infosys: Seeing uptick in discretionary spend in energy, utilities segment 
--Infosys: See growth in fincl services and energy, utilities segments FY27 
--Infosys: Expect demand from automotive sector to remain weak for now 
--Infosys: See constraints in hi-tech segment in near term 
--Infosys: Co likely gaining market share given the large deal wins in FY26 
--Infosys: Co also seeing good growth in smaller accounts 

 

By Shakshi Jain and Simran Rede

 

NEW DELHI/MUMBAI – Information technology services major Infosys Ltd. expects to record growth in at least two segments in the financial year 2026-27 (Apr-Mar)--financial services and energy, utilities, resources, and services--the company's management told investors and analysts in a post-earnings conference call Wednesday.

 

"In financial services and in energy, utilities, resources, and services verticals, we expect acceleration in financial year 2027 over financial year 2026," Managing Director and Chief Executive Officer Salil Parekh said. "This is based on good deal wins and AI (artificial intelligence) partner status with 15 of our largest 25 clients in each of these verticals." Moreover, in the financial services segment, the company sees notable traction in large deals and discretionary projects.

 

Infosys also raised its revenue growth guidance for FY26 to 3.0-3.5% in constant currency, from 2.0-3.0%. In the seasonally-weak December quarter, the IT player's consolidated revenue rose a little over 2% sequentially to INR 454.79 billion. Its net profit, however, fell nearly 10% on quarter to INR 66.54 billion. The company's bottom line was dragged down by a one-time cost of INR 12.89 billion on account of mandates under the new labour codes.

 

Revenue from the company's biggest segment--financial services--grew 3.9% on year in constant currency terms during the December quarter, increasing the contribution to the overall top line to 28.2% from 27.7% in the trailing quarter. On the other hand, revenue from the energy, utilities, resources, and services segment, which accounted for over 13% of the company's total sales in the December quarter, grew 0.5% on year in constant currency terms.

 

DEMAND TRENDS

In the financial services segment, Infosys is seeing continued momentum across sub-verticals like banking, payments, and mortgages, along with assets and wealth management. "There is elevated interest in AI-led transformation, platform modernisation, and vendor consolidation," said Chief Financial Officer Jayesh Sanghrajka. "We are seeing a shift from compliance to business growth."

 

In the energy and utilities sector, the company has observed an increase in discretionary demand. Within the utilities category, demand is being driven by infrastructure investments in AI data centres. In the energy sector, discretionary demand is focused on decarbonisation and low-carbon solutions. "...there is also focus on cost optimisation and consolidation due to enterprise AI adoption," Sanghrajka said.

 

However, in the manufacturing segment, tariff uncertainty is preventing clients from committing to long-term investments, as per the management. Discretionary spending is under pressure and decision-making is slow, Sanghrajka said. While the industrial and aerospace sectors are doing well, the automotive segment continues to see challenges, he added.

 

Parekh said there is weakness in select pockets of the industrial sector across Europe. He expects the weakness in the automotive segment to persist for a while. "...and hi-tech also, at this stage, we see some constraints in that industry," the managing director said.

 

The retail and communications sectors also continue to be affected by geopolitical uncertainties, Sanghrajka said. However, deals bagged in earlier quarters are helping the company to drive growth on a year-on-year basis in the communications segment, he added.

 

Overall, Infosys is registering growth in smaller accounts and is likely to be gaining market share given its large deal wins in FY26, the management said. The company got large deals worth $4.8 billion in the December quarter, higher than $3.1-billion worth of orders it had won in the trailing quarter.

 

Infosys announced its December quarter earnings after market hours Wednesday. Ahead of the earnings, its shares closed marginally higher at INR 1,599.80 on the National Stock Exchange.  End

 

US$1 = INR 90.29

 

Edited by Rajeev Pai

 

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