Infosys Q2 net jumps 6%to ₹7,823 crore, to pay interim dividend of ₹26/share

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Updated - October 23, 2026 09:36 pm IST - Bengaluru

Infosys CEO and Managing Director Salil Parekh addresses a press conference on the financial results of Infosys Q2 FY27 at the Infosys campus, in Bengaluru on October 23, 2026. | Photo Credit: ANI

Infosys on Friday reported a 6.2% growth in its net profit to ₹7,823 crore in the second quarter of FY27 up from ₹7,364 crore a year ago while its revenue grew 10.7% to ₹49,244 crore up from ₹44,490 crore.

Company said during the quarter it won large deals worth $5.2 billion, with 62% of these wins being net new.

Cautioned by overall market environment, the company trimmed its revenue growth projection for FY27 to 1% to 2%, down from its previous guidance of 1.5% to 3%, although retained its full-year operating margin guidance at 20% to 22%.

The company indicated that guidance was cut due to various factors including a softer second quarter, subdued volumes, ongoing pricing pressure, and higher productivity expectations from clients, in addition to weakness in discretionary spending across retail and high-tech sectors, even as the IT services major reported strong AI and large deal wins in the September quarter.

It also said the revised revenue outlook reflected the challenges of converting AI-led productivity gains into incremental revenue while managing competitive intensity in the traditional services business.

Jayesh Sanghrajka, Chief Financial Officer in an earnings call said, “Our Q2 has been softer and our volume continues to remain softer.

We have also seen pricing pressure on the back of competitive intensity and higher ask on productivity.’’

The Q2 also saw a risein AI-related revenue, accounting for 10.5% of total revenue, up from 8.2% in the corresponding period and 29% sequentially.

Company recorded large deals of $5.2 billion, including a mega deal of over $2 billion, reinforcing its position in the marketplace when global clients embarked on large and complex transformation programmes, said company CEO and MD, Salil Parekh.

“As enterprises move to AI adoption at scale, the strong growth in AI revenues is a recognition of our differentiated market positioning and client confidence,” he said adding that the company was advising some of the largest global enterprises on their AI strategy and continue to invest in deep domain and technology capabilities to bring new ideas and an integrated ecosystem to help businesses unlock AI value at scale.

The company delivered operating margins of 21.0% in Q2 amid heightened volatility and would focus on cost and operational efficiency measures while making the required investments for stable margins, Mr.

Sanghrajka said.

“A free cash flow of $928 million, representing 113.3% of net profit, underscores the financial strength of the business.

The Board has announced an interim dividend of ₹26 per share, an increase of 13% from last year,’’ he added.

In his commentary, Mr.

Parekh said, the demand was particularly strong in financial services, energy and utilities, and manufacturing, while retail and high technology continued to face weakness, partly owing to lower discretionary spending.

According to Mr.

Parekh, the net-new contract was expected to contribute more than 1% to revenue growth in the next financial year.

The company’s large deal pipeline remained healthy, with additional mega deals under consideration.

He also said AI was creating productivity-driven pricing pressures across the industry, as clients seek greater output from technology spending.

Infosys has also reported a net addition of 4,000 employees in the quarter, including 8,000 fresh graduates.

The tech firm’s target for the full year of hiring 20,000 graduates remained unchanged.

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