In a significant financial update from India’s thriving IT services sector, Infosys Ltd, the country’s second-largest IT services firm, announced its Q4 results for the fiscal year 2024-25
In a significant financial update from India’s thriving IT services sector, Infosys Ltd, the country’s second-largest IT services firm, announced its Q4 results for the fiscal year 2024-25 on April 17, 2025. The company reported a 12% year-on-year (YoY) decline in its consolidated net profit, falling to Rs 7,033 crore. This figure came in below market expectations, as analysts had estimated the net profit to be around Rs 7,278 crore for the quarter.
The Bengaluru-based tech giant also provided revenue guidance for the upcoming fiscal year 2025-26, projecting a modest growth in the range of 0-3% in constant currency terms. This guidance is notably conservative compared to previous years, indicating a cautious outlook amid ongoing global economic uncertainties and challenges faced by the technology services industry.
While the net profit recorded a significant decline on a year-on-year basis, Infosys did manage to register a sequential rise in profits, reporting a 3.3% increase compared to the previous quarter. Despite this marginal improvement, the results have reflected the broader headwinds affecting the IT services sector globally, including tightening client budgets, project delays, and a slowdown in discretionary IT spending.
During the quarter, Infosys continued to face pressures in its key markets, particularly the United States and Europe, where clients have remained cautious about new tech investments amid inflationary trends and macroeconomic concerns.
Infosys’ revenue growth guidance of 0-3% for FY26 has been one of the talking points of the earnings announcement. This is a sharp contrast from the company’s earlier performance and guidance in FY25, where it had revised its constant currency revenue growth guidance to 4.5-5% in January 2025, up from an earlier 3.75-4.5% range.
The subdued growth forecast highlights the challenging environment for IT service providers in the post-pandemic world, where enterprises are prioritizing cost optimization over new technology adoption. Infosys cited factors such as delayed deal ramp-ups, slower decision-making cycles, and ongoing geopolitical tensions as key reasons behind its conservative revenue projection.
Infosys’ top leadership acknowledged the tough market conditions and reaffirmed the company’s commitment to delivering value through operational efficiency and strategic partnerships. The management emphasized its focus on large deal wins, digital transformation services, and strengthening capabilities in areas like AI, cloud computing, and cybersecurity.
Salil Parekh, CEO and MD of Infosys, commented, “The market environment continues to be uncertain, and our clients remain cautious with their discretionary spends. However, our strong large deal pipeline and strategic investments in next-gen technologies position us well for future growth. We remain optimistic about our long-term prospects.”
Despite the profit dip, Infosys secured significant large deals in Q4, reflecting continued client trust and demand for digital transformation services. The company signed several multi-year contracts in sectors such as banking, healthcare, and retail.
The company also expanded its strategic partnerships with global technology players and cloud providers to strengthen its service offerings in AI-led transformation, enterprise modernization, and business process management.
Infosys’ total headcount stood at over 320,000 employees by the end of March 2025, with the company continuing to invest in talent upskilling and leadership development programs to drive innovation and client value delivery.
Infosys’ Q4 results come at a time when the entire Indian IT sector is navigating through a period of uncertainty. Top IT firms, including TCS, Wipro, and HCLTech, have all reported mixed earnings for the latest quarter, with muted deal momentum and client budget cuts weighing on growth prospects.
The market reacted cautiously to Infosys’ earnings announcement. Shares of Infosys slipped marginally in the immediate aftermath of the results, reflecting investor concerns over the lower-than-expected profit numbers and conservative revenue guidance for the coming year.
Looking forward, Infosys plans to focus on enhancing its digital and cloud capabilities while accelerating AI-driven solutions for clients across industries. The company’s leadership remains committed to exploring new opportunities in emerging technologies, including generative AI, sustainable IT solutions, and advanced cybersecurity services.
Infosys also intends to leverage its global delivery model and strategic partnerships to navigate the prevailing market challenges and sustain long-term value creation for stakeholders.
Source – moneycontrol.com
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