Infosys Reports 9.6% Revenue Growth for FY26, Reaching Rs 1.79 Lakh Crore

The Indian information technology giant Infosys has announced a revenue increase of 9.6 per cent for the fiscal year 2026, reaching Rs 1,78,650 crore. This growth was accompanied by a net profit rise of 10.2 per cent to Rs 29,440 crore, underscoring the company's strong financial performance over the past year.

For the entirety of FY26, Infosys achieved an operating margin of 20.3 per cent, slightly declining from 21.1 per cent in FY25. The marginal drop in the margin is attributed to a mix of new investments and changes in structural costs. Despite these challenges, the company reported a stable growth rate, particularly when assessed on a constant currency basis, revealing a 3.1 per cent revenue growth year-on-year. In the fourth quarter alone, revenue increased by 4.1 per cent when adjusted for currency fluctuations.

The March quarter capped off the fiscal year with a robust performance. Infosys reported revenue of ₹46,402 crore for Q4, marking a substantial 13.4 per cent year-on-year increase. Net profit for the same quarter surged by 20.9 per cent to ₹8,501 crore, while earnings per share rose to ₹21.01, reflecting a year-on-year jump of 23.8 per cent.

Key financial metrics indicate strong business momentum. The company's total contract value for large deals reached $14.9 billion for the entire fiscal year, with a notable $3.2 billion generated in the fourth quarter alone. This demonstrates persistent demand from enterprises amid varied macroeconomic conditions. Overall, Infosys reported a free cash flow of $3.7 billion for the year, including $0.8 billion in Q4. In rupee terms, the quarterly free cash flow equated to ₹7,711 crore, notwithstanding one-off payments related to labour code obligations.

In terms of business segments, financial services constituted the largest revenue share, accounting for 28.0 per cent of total revenue, followed by manufacturing at 15.9 per cent and energy, utilities, and resources at 13.2 per cent. Life sciences emerged as a significant growth area, expanding by 15.5 per cent year-on-year.

Geographically, North America remains the largest market for Infosys, contributing 55.7 per cent of the company’s revenue. However, Europe exhibited faster growth of 11.4 per cent year-on-year in FY26. By the end of the fiscal year, Infosys had 1,965 active clients, adding 111 new clients in the fourth quarter.

Additionally, operational metrics revealed a slight reduction in workforce, with the total headcount at 328,594. Voluntary attrition rates decreased to 12.6 per cent, with stable utilisation levels recorded at 83.0 per cent, excluding trainees. The company's cash reserves also showed strength, with consolidated cash and investments totalling $4.5 billion (approximately ₹43,075 crore) at the end of the quarter.

A significant factor influencing the reported figures was the impact of tax reversals associated with Income Tax Act provisions and changes under recently introduced labour codes. After accounting for these variables, the growth in earnings per share stood at 12.1 per cent for FY26 and 13.9 per cent for Q4. While profit margins experienced modest pressure, the overall picture painted by Infosys for FY26 indicates a company poised for future growth, characterised by solid profit increases, strong deal acquisitions, and healthy cash flows.