Infosys walked into April with a quarter nobody quite saw coming. The profit number was big. The stock didn’t care. And somewhere between those two facts lies a story worth reading carefully. Whether you’re holding shares, watching from the sidelines, or just trying to make sense of what India’s IT sector is doing right now, this guide cuts through the noise and tells exactly what the Infosys Q4 FY26 results actually mean.
Infosys Q4 Overview
Infosys closed the March 2026 quarter on a surprisingly strong note. Revenue hit ₹46,402 crore, profit climbed over 20% year on year, and the operating margin held firm at 21%, a level most peers would be quietly relieved to report right now.
What made this quarter stand out was not just the numbers. The total contract value (TCV) of deals reached $3.2 billion in Q4 alone. The full-year large deal TCV landed at $14.9 billion. It signals that client conversations are turning into real business despite the global unrest in the IT industry.
Infosys Q4 Financial Results
The given table compares Infosys’ performance in Q4FY26 with the previous quarter and the fourth quarter of FY25:
| Metric | Q4 FY25 | Q3 FY26 | Q4 FY26 | QoQ | YoY |
| Revenue (₹ crore) | 40,925 | 45,479 | 46,402 | +2.0% | +13.4% |
| Cost of Sales (₹ crore) | 28,575 | 32,652 | 32,058 | (1.8%) | +12.2% |
| Gross Profit (₹ crore) | 12,350 | 12,827 | 14,344 | +11.8% | +16.1% |
| Total Operating Expenses (₹ crore) | 3,775 | 4,472 | 4,601 | +2.9% | +21.9% |
| Operating Profit (₹ crore) | 8,575 | 8,355 | 9,743 | +16.6% | +13.6% |
| Operating Margin (%) | 21.0% | 18.4% | 21.0% | +2.6 pp | Flat |
| Net Profit (₹ crore) | 7,033 | 6,654 | 8,501 | +27.8% | +20.9% |
| Basic EPS (₹) | 16.98 | 16.17 | 21.01 | +29.9% | +23.8% |
| Free Cash Flow (₹ crore) | 7,737 | 8,176 | 7,711 | (5.7%) | (0.3%) |
| Dividend Per Share (₹) | 22.00 | — | 25.00 | — | +13.6% |
Infosys Revenue & Profit
Revenue landed at ₹46,402 crore, a 13.4% jump from where it stood a year ago. Before anyone gets too excited, the constant currency (CC) growth tells a more grounded story at 4.1%. That gap between reported and CC numbers deserves attention as Infosys heads into FY27.
The cost side is where it gets interesting. Total operating expenses of ₹4,601 crore barely moved relative to the revenue base, which kept the costs under control. Net profit reached ₹8,501, rising 27.8% from the previous quarter, holding up well against the sector uncertainty all year.
Infosys EPS (Earnings Per Share)
The per-share earnings story is one of the clearest wins in this report. Basic EPS hit ₹21.01 in Q4, up 23.8% from ₹16.98 in Q4 FY25. On a sequential basis, it jumped nearly 30% from ₹16.17 in Q3, a swing that partly reflects the reversal of income tax provisions of ₹774 crore.
Strip that out, and the picture is still healthy. Adjusted EPS growth for the full year FY26 works out to 12.1%, and 13.9% for Q4 specifically. The full year basic EPS settled at ₹71.58 versus ₹64.50 in FY25, an 11% compounding year.
Infosys Strong Capital Position
The balance sheet stayed in good shape. The consolidated value of cash and investments stands at ₹43,075 crore. A sharp rise from ₹35,206 crore in the last quarter.
Free cash flow came in at ₹7,711 crore for the quarter, similar to Q4 FY25. Operating margin recovered to 21.0%. It bounced back from 18.4% in Q3, which was distorted by the Labour Codes provision of ₹1,289 crore. Without it, the underlying margin barely moved all year.
Infosys Asset Quality
Days Sales Outstanding fell to 67 days in Q4 from 74 days in Q3. That compression means clients are paying faster, which is a quiet but telling sign of contract strength. A rising DSO is usually where revenue quality problems first surface, so seeing it move in the other direction is worth noting.
Client concentration also kept improving. It went down from 13.1% to 12.6% for the top five clients. This gradual broadening makes the business less exposed to the loss of any single large account.
Infosys Dividend Announcement
The board signed off on a final dividend of ₹25 per share. Hold the stock by June 10, 2026, and the payment lands in your account by June 25.
Total payout for FY26 works out to ₹48 per share. The yield sits near 2% at current prices, which is modest. But Infosys has kept its payout ratio steady for several years running, and that kind of reliability is valued by investors.
Segment Performance
How does Infosys fare against its domestic peers in Q4 FY26? Let’s compare it with TCS and HCLTech.
| Metric | Infosys | TCS | HCLTech |
| Revenue (₹ crore) | 46,402 | 70,698 | 33,981 |
| Revenue Growth (YoY) | 13.4% | 9.6% | 12.3% |
| Net Profit (₹ crore) | 8,501 | 13,718 | 4,488 |
| Operating Margin | 21.0% | 25.3% | 16.5% |
| EPS (₹) | 21.01 | 37.92 | 19.8 |
| Dividend (FY26, ₹/share) | 48.00 | 110.00 | 60.00 |
| Deal TCV (Q4) | $3.2 Bn | $12 Bn | $1.9 Bn |
- TCS is the scale story. ₹70,698 crore in revenue, ₹13,718 crore in profit, and a 25.3% operating margin that is the highest in the sector. Its deal TCV of $12 billion for Q4 alone is a number that puts everyone else’s pipeline in perspective.
- Infosys sits comfortably in the middle of this comparison. Better margin than HCLTech, faster reported revenue growth than TCS, and a deal book that has been strengthening across the year.
- HCLTech had the hardest quarter of the three. Revenue grew 12.3% YoY, which looks fine on the surface, but operating margin dropped to 16.5%, and management guided FY27 growth at a cautious 1% to 4%. This tends to unsettle markets more than a single quarter’s underperformance.
Market Reaction
Results came out on April 23, 2026, after market hours. The headline numbers cleared the bar comfortably. Analysts had been estimating a modest growth in profit, but the actual 20.9% was a meaningful beat, aided partly by the tax reversals but also by genuine operational improvement.
Infosys Stock Price Movement
Shares were trading at ₹1,230 just before the results dropped. The 52-week high is ₹1,728, and the 52-week low touched ₹1,167, which means the stock was sitting barely above its annual floor on results day.
The stock opened near ₹1,202 on April 24, 2026. The P/E ratio at current levels is approximately 18x, which is well below the premium multiples the stock has historically commanded.
Investment Implications
Q4 FY26 confirmed that Infosys has the operating engine running well. Margins are stable, profits are growing, and deal wins are improving. But the first quarter of FY27 will determine whether the stock finds its footing or continues to consolidate around current levels.
Long-Term Outlook
For patient investors, the structural picture holds up better than the stock price currently suggests.
- The 21% operating margin has absorbed the labour provision charges and still held its line, which says something about cost discipline at the business level.
- Full-year large deal TCV of $14.9 billion is the strongest evidence that enterprise transformation spending is not disappearing; it is just lumpy quarter to quarter.
- The OpenAI collaboration announced on April 22, 2026, and the Infosys Topaz platform are moving from pilot conversations to actual billable engagements, a shift that typically takes a few quarters to show up in revenue.
- Europe now contributes 32.6% of revenue and grew 11.4% YoY, reducing the company’s dependence on a single geography for growth.
- FY26 dividend per share of ₹48 grew 11.6% over the previous year. A consistent payout ratio % maintained over several years is a credibility signal that doesn’t get enough attention.
Short-Term Trading Opportunities
Traders need patience for the near-term setup. The support sits between ₹1,215 and ₹1,230. It has been tested multiple times in the past quarter without breaking.
The resistance zone is layered. The first level is at ₹1,280. After it, the next zone is in the ₹1,340 to ₹1,360 range, where the stock consolidated for a good part of February 2026.
Taking an entry in the ₹1,215 to ₹1,235 range with a stop-loss below ₹1,190 seems viable. It will keep the risk defined and the setup clean. The target will be close to ₹1,310. A move above ₹1,360 needs either a revision in the next quarter or more stability in the IT sector.
Final Thoughts
Infosys closed the financial year with strong profits, a clean margin recovery, and higher dividends. The numbers were genuinely good. The industry injected just enough uncertainty to keep the rally in check. For a business this size, operating at 21% margins through a year of choppy global demand, the Q4 FY26 result deserves more credit than the stock’s muted reaction suggests.
