Published: October 24, 2026 • Category: Indian Tech • IT Services Earnings • By Mahesh
BENGALURU: Infosys reported a 6.2% rise in consolidated net profit to Rs 7,823 crore for the September quarter on Friday, October 23. It also cut its FY27 constant-currency revenue growth guidance to 1% to 2% from 1.5% to 3%.[4][5] Large deal wins were 5.2 billion dollars, well above brokerage forecasts of 2 billion to 3 billion dollars. The board declared an interim dividend of Rs 26 per share.[4][5][11] The results were filed with the NSE and BSE.[2][3]
Q2 FY27 Results at a Glance
| Metric | Q2 FY27 | YoY | QoQ |
|---|---|---|---|
| Net profit (Rs crore) | 7,823 | +6.2% | +0.7% |
| Revenue from operations (Rs crore) | 49,244 | +10.7% | Not stated |
| Revenue (USD million) | 5,145 | +1.5% in constant currency | +1.2% in constant currency |
| EBITDA (Rs crore) | 10,330 | +10.4% | +1.6% |
| Operating margin | 21.0% | Flat | About -10 bps |
| Free cash flow | USD 928 million (Rs 8,898 crore) | -8.1% in rupees | Not stated |
| Large deal TCV | USD 5.2 billion | Not stated | Up from USD 3.6 billion |
Source: Infosys results as reported by Upstox, ThePrint (PTI), Goodreturns and Storyboard18.[4][5][6][7] Revenue growth in rupees is a Depth Grid calculation; PTI reported 10.2%.
Revenue from operations of Rs 49,244 crore is 10.7% above the Rs 44,490 crore of a year earlier on Depth Grid's calculation, although PTI's report gave 10.2%.[5][7] Constant-currency growth of 1.5% year on year shows how much of the rupee growth comes from currency moves, since the rupee has weakened against the dollar.[7] First-half revenue was Rs 97,454 crore, up 12.3% in rupees and 1.9% in constant currency, with an operating margin of 21%.[7]
Against Expectations: Deals Beat, Profit Slightly Short
| Measure | Expected | Reported | Result |
|---|---|---|---|
| Revenue (Rs crore) | 49,090 to 49,323 | 49,244 | In range |
| Net profit (Rs crore) | 8,026 to 8,100 (brokerage poll); 7,904 (Bloomberg consensus); 7,689 (Kotak) | 7,823 | Below poll and consensus; above Kotak |
| Constant-currency growth QoQ | 1.1% to 1.7% | 1.2% | Low end of range |
| Large deal TCV | USD 2 billion to 3 billion | USD 5.2 billion | Well above |
| FY27 guidance | Cut to 1.5% to 2.5% (Emkay) | Cut to 1% to 2% | Deeper cut |
Sources: forecasts from BusinessLine and Business Today; reported figures from Upstox and ThePrint.[9][11][4][5]
On Depth Grid's calculation, net profit of Rs 7,823 crore is about 1% below the Bloomberg consensus of Rs 7,904 crore, about 2.5% to 3.4% below the brokerage poll range cited before the results and about 1.7% above Kotak Institutional Equities's Rs 7,689 crore estimate.[9][11]
The Guidance Cut Was Deeper Than Feared
Infosys lowered its FY27 revenue growth range to 1% to 2% in constant currency, which moves the midpoint from 2.25% to 1.5%, a cut of 75 basis points on Depth Grid's calculation.[4][7] Emkay Global had expected a range of 1.5% to 2.5% with a midpoint of 2%, so the actual cut was larger.[9] Margin guidance of 20% to 22% was unchanged.[4][5]
First-half constant-currency growth was 1.9%, against a full-year range of 1% to 2%, which implies second-half growth of roughly 0% to 2% year on year if both halves carry equal weight, on Depth Grid's approximation.[7] Management has not given a quarterly path, so this is an inference and not company guidance.
Large Deals and AI Revenue
Large deal total contract value was 5.2 billion dollars, with 62% net new. It included a mega deal of more than 2 billion dollars over seven years, according to CEO Salil Parekh.[4][5] That is up from 3.6 billion dollars in Q1 and well above the 2 billion to 3 billion dollar forecast.[11] On Depth Grid's calculation, net new deals were about 3.2 billion dollars and the single mega deal was at least 38% of the total, so excluding it intake would have been near the top of the forecast range.
The company reported a 29% sequential rise in AI revenue.[7] It also said attrition fell to 12.7% and selling and marketing expenses rose 11.9% to Rs 2,489 crore.[7] Parekh said the company is advising some of the largest global enterprises on their AI strategy.[4]
Cash, Dividend and Costs
Free cash flow was 928 million dollars, equal to 113.3% of net profit, although free cash flow in rupees fell 8.1% year on year to Rs 8,898 crore.[5][7] The board declared an interim dividend of Rs 26 per share, 13% higher than a year ago.[5][4]
How the Four Large Companies Now Compare
| Metric | TCS | HCLTech | Wipro | Infosys |
|---|---|---|---|---|
| Revenue growth YoY (Rs) | +11.2% | +11.5% | +9.1% | +10.7% (calc) |
| Net profit growth YoY | +15.0% | +21.2% | -1.4% | +6.2% |
| Sequential growth | +0.5% CC | +2.3% CC | -0.1% (USD, IT services) | +1.2% CC |
| Operating margin | 24.0% | About 18.2% (EBIT) | 16.5% (IT services) | 21.0% |
| Large deals | TCV USD 9.6 billion | Bookings USD 3.26 billion | Large deals -58.6% QoQ | TCV USD 5.2 billion |
| FY27 outlook | Not stated in sources | CC 2.5% to 4%, floor raised | Q3 USD -1.5% to +0.5% CC | CC 1% to 2%, cut |
Sources: company results as reported by Free Press Journal, Kotak Neo, Business Standard, Upstox and ThePrint.[13][14][15][4][5] Bases and definitions differ by company; HCLTech margin is a Depth Grid calculation.
With all four reported, HCLTech leads on growth and profit, Tata Consultancy Services on margin and Infosys on deal intake this quarter, while Wipro trails on most measures. Infosys is the only one of the four to cut its full-year growth range in the September quarter results.
Strategic Implications for Indian IT
The result shows a company winning large contracts while trimming its growth outlook. Large deals of 5.2 billion dollars point to demand for big transformation programmes, but constant-currency growth of 1.2% sequentially and a 1% to 2% annual range show those deals convert to revenue slowly. Stable margins at 21% suggest cost control is offsetting the soft top line, as it did at Wipro.
AI revenue is growing quickly from a small base, which matches what HCLTech reported. Depth Grid's guide to the AI native company covers how businesses are restructuring around AI. Enterprise software moves such as SAP's purchase of TechWolf show where demand is heading. Visa and hiring rules remain a separate variable for onshore delivery, as covered in our report on the US suspension of PERM processing for Indian IT majors.
Common Questions and Direct Answers
What were Infosys' Q2 FY27 results?
Infosys reported consolidated net profit of Rs 7,823 crore for the September 2026 quarter, up 6.2% from Rs 7,364 crore a year earlier and up 0.7% from Rs 7,769 crore in June. Revenue from operations was Rs 49,244 crore. Revenue grew 1.5% year on year and 1.2% sequentially in constant currency. Operating margin was 21.0%.
Did Infosys cut its FY27 revenue guidance?
Yes. Infosys lowered its FY27 constant-currency revenue growth guidance to 1% to 2% from 1.5% to 3%, which moves the midpoint from 2.25% to 1.5%. It kept operating margin guidance at 20% to 22%. Emkay Global had expected a smaller cut to 1.5% to 2.5%, so the revision was deeper than that forecast.
How large were Infosys' large deal wins in Q2 FY27?
Large deal total contract value was 5.2 billion dollars, with 62% net new, including a mega deal of more than 2 billion dollars over seven years. That compares with 3.6 billion dollars in Q1 and with a brokerage forecast of 2 billion to 3 billion dollars. Depth Grid calculates net new deals at about 3.2 billion dollars.
What interim dividend did Infosys declare?
The board declared an interim dividend of Rs 26 per share, 13% higher than last year. Free cash flow was 928 million dollars in the quarter, equal to 113.3% of net profit, although free cash flow in rupees fell 8.1% year on year to Rs 8,898 crore. Check the exchange filing for the record and payment dates.
How does Infosys compare with TCS, HCLTech and Wipro this quarter?
Infosys grew constant-currency revenue 1.2% sequentially, behind HCLTech's 2.3% and ahead of TCS's 0.5% and Wipro's flat dollar revenue. Its profit growth of 6.2% trails HCLTech's 21.2% and TCS's reported 15% but beats Wipro's 1.4% decline. It cut guidance, while HCLTech raised the floor of its range.
Primary Sources and Regulatory Filings
- Infosys: investor relations and quarterly results releases
- National Stock Exchange of India: corporate announcements and results filings
- BSE: corporate announcements and results filings
- Upstox: Infosys Q2 net profit, margin, deals and guidance cut
- ThePrint (PTI): Infosys Q2 net profit rises 6.2% to Rs 7,823 crore
- Goodreturns: Infosys Q2 results, EBITDA, margin and guidance
- Storyboard18: Infosys Q2 FY27 revenue, AI revenue growth, attrition and free cash flow
- Archyde: Infosys Q2 results and Rs 26 interim dividend
- Business Today: Infosys Q2 results preview and Bloomberg consensus
- Upstox: Infosys Q2 results preview, previous-quarter profit
- BusinessLine via TradingView: brokerage expectations for Infosys Q2
- Kotak Neo: HCLTech Q2 FY27 results
- Free Press Journal: TCS Q2 FY27 results
- Business Standard: Wipro shares and brokerage views after Q2 results
Related Intelligence
By Mahesh | Depth Grid News Desk | depthgrid.in
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