Infosys FY26 revenue rises 9.6 per cent to Rs 1.79 lakh crore

MUMBAI: When the code compiles cleanly, the numbers tend to follow and Infosys seems to have delivered just that in FY26. The IT major reported FY26 revenue of Rs 1,78,650 crore, marking a 9.6 per cent year-on-year rise, while net profit climbed 10.2 per cent to Rs 29,440 crore. Operating margin for the year stood at 20.3 per cent, slightly lower than 21.1 per cent in FY25, reflecting a mix of investments and structural cost changes.

Growth, however, told two stories. On a constant currency basis, revenue expanded 3.1 per cent for the full year and 4.1 per cent in Q4, even as reported numbers were aided by currency movements. Adjusted operating margin came in at 21.0 per cent for FY26.

The March quarter capped the year on a stronger note. Revenue rose 13.4 per cent year-on-year to Rs 46,402 crore, while net profit surged 20.9 per cent to Rs 8,501 crore. Earnings per share jumped 23.8 per cent YoY to Rs 21.01.

Deal momentum remained a standout. Large deal total contract value (TCV) came in at $14.9 billion for FY26, including $3.2 billion in Q4 alone, underlining sustained enterprise demand despite a mixed macro environment.

Free cash flow for the year stood at $3.7 billion, with Q4 contributing $0.8 billion. In rupee terms, quarterly free cash flow was Rs 7,711 crore, even after accounting for one-off outflows linked to labour code payments.

Segment-wise, financial services continued to anchor the business at 28.0 per cent of revenue, followed by manufacturing at 15.9 per cent and energy, utilities and resources at 13.2 per cent. Life sciences emerged as a faster-growing vertical, expanding 15.5 per cent year-on-year in reported terms.

Geographically, North America remained dominant, contributing 55.7 per cent of revenue, while Europe grew faster at 11.4 per cent YoY. The company closed the year with 1,965 active clients, adding 111 during the quarter.

Operational metrics reflected a steady workforce recalibration. Total headcount stood at 3,28,594, down from the previous quarter, while voluntary attrition eased to 12.6 per cent. Utilisation levels remained stable at 83.0 per cent excluding trainees.

Cash reserves also strengthened, with consolidated cash and investments at $4.5 billion (Rs 43,075 crore) at the end of the quarter.

One notable factor shaping reported numbers was the impact of tax reversals linked to Income Tax Act orders and provisions under newly notified labour codes. Excluding these, EPS growth stood at 12.1 per cent for FY26 and 13.9 per cent for Q4.

Margins may have softened slightly, but with double-digit profit growth, strong deal wins, and resilient cash flows, Infosys’ FY26 scorecard suggests a company still coding for scale even if the pace has turned more measured than meteoric.