Infosys Q2FY26 net profit rises 13% Y-o-Y to ₹7,364 cr
Bengaluru: Infosys reported a 13.2 percent year-on-year increase in net profit to ₹7,364 crore for the September quarter, as all major business verticals recorded growth across key markets, despite a persistently uncertain macroeconomic environment.
Revenue grew 8.6 percent year-on-year to ₹44,490 crore, driven mainly by financial services and manufacturing, according to a Business Standard report.
In constant currency terms, the Bengaluru-based IT major registered 3.7 percent growth.
Buoyed by a steady deal pipeline, Infosys raised the lower end of its full-year revenue guidance.
India’s second-largest software exporter now expects FY26 growth between 2 and 3 percent, compared with 1–3 percent projected in July.
“The environment continues to remain uncertain,” said CEO and MD Salil Parekh. “While the second half is generally softer, we are seeing strong traction in deal wins and hence raised our guidance. We are much more confident of achieving the lower-end outlook.”
The company clarified that although the upper end of the guidance remains unchanged, the lower range reflects lingering global headwinds that could weigh on performance.
Parekh noted that Infosys has delivered two consecutive quarters of solid growth, bolstered by its recently announced £1.2-billion deal with the UK’s National Health Service (NHS).
The contract, expected to contribute £120 million annually over the next 15 years, underlines the company’s strength in long-term engagements.
Most of Infosys’ large deals continue to focus on cost optimisation, automation, and AI-led efficiency improvements.
The deal pipeline remains concentrated in financial services, manufacturing, and retail.
Financial services grew 5.4 percent and manufacturing 6.6 percent, while retail declined 2.3 percent in Q2.
The total contract value (TCV) of large deal wins stood at $3.1 billion, up 29 percent year-on-year.
“Modernisation of legacy technology platforms is a huge opportunity due to AI,” Parekh said. “Earlier, it was possible without AI, but now the timeline is shorter and the RoI for clients is higher.”
Geographically, North America grew 2 percent and Europe 6.8 percent, with Europe showing particular strength in transformation and cost-efficiency projects.
Operating margin stood at 21 percent — the midpoint of the company’s guidance range of 20–22 per cent. “We continue to make strategic investments to future-proof the business, maintaining a tight focus on execution amid high uncertainty,” said CFO Jayesh Sanghrajka.
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