Infosys Q1 Results: FY27 revenue growth seen between 1.5% to 3%; Margin outlook maintained

Bengaluru-based technology services provider Infosys Ltd. now expects revenue growth for financial year 2027 to be between 1.5% to 3%. The management had earlier guided for the figure to be between 1.5% to 3.5% in constant currency terms for the full year. Most analysts were also expecting the upper end of the guidance band to be trimmed by 50 basis points.

EBIT margin guidance for the year was maintained between 20% to 22%.

Infosys reported constant currency revenue growth of 1% on a sequential basis during the June quarter. The figure is lower than Tech Mahindra's 2.6% growth during the quarter, but higher than the rest of its largecap peers such as TCS (+0.4%), HCLTech (-0.5%) and Wipro (-1.2%). Analysts who cover Infosys had projected the figure to be around 1.8%.

CEO Salil Parekh attributed the 1% growth to a one-time impact of a client decision during the quarter.

For the June quarter, Infosys reported US Dollar revenue of $5,082 million, which is in-line with the CNBC-TV18 poll of $5,127 million. On a sequential basis, Infosys reported US Dollar revenue growth of 0.8%.

In rupee terms, Infosys reported topline growth of 3.9% quarter-on-quarter. The ₹48,211 crore figure was marginally with the CNBC-TV18 poll estimate of ₹48,431 crore.

Infosys reported Earnings Before Interest and Tax (EBIT) of ₹10,163 crore, which is higher by 4.3% from the March quarter. A CNBC-TV18 poll was working with a figure of ₹10,212 crore.

EBIT margin for the quarter stood at 21.1%, an expansion of 20 basis points from the previous quarter. The CNBC-TV18 poll was working with a 21.1% EBIT margin figure, which is at the mid-point of the 20-22% guided range.

Infosys has also declared the name of Ashiss Kumar Dash as CEO-designate, who will be taking over from Salil Parekh starting April 1, 2027, when his nine-year term comes to an end. Dash is currently the global head of a diverse business portfolio comprising multiple industry verticals. Dash has spent over three decades at Infosys.

Infosys reported large deal wins worth $3.6 billion during the quarter, 61% of which were net new deals. The company has also disclosed that Artificial Intelligence now forms 8.2% of its overall topline.

In its post-earnings interaction, Nandan Nilekani thanked Salil Parekh for his contributions, stating that he came in at a time when "things were slightly unstable and brought in calm and focus." He went on to add that CEO-designate Dash is based out of the US and will return to India for his new role.

Shares of Infosys ended little changed ahead of the results announcement at ₹1,052.9. The stock has declined 35% so far in 2026.