Infosys Ltd — FY25 / Q4 FY25 Summary & Outlook

Financial Highlights (Q4 FY25 & FY25) • In Q4 FY25, Infosys reported consolidated revenue of ₹40,925 crore, growing about 7.9% year-on-year. • Q4 net profit declined 11.75% YoY to ₹7,033 crore, though sequentially it rose around 3.3% from the prior quarter. • Operating margin stood near 21%, improving slightly YoY. • Free cash flow in Q4 was ₹7,737 crore, with conversion of 109.9% of net profit. • For full FY25, revenue grew about 4.2% in constant currency. • The board announced a final dividend of ₹22 per share for FY25. Guidance & Strategic Moves • Infosys guided for 0–3% constant currency revenue growth and 20–22% operating margin in FY26. • The firm is focusing on artificial intelligence, automation, and cloud services to boost growth. • It acquired MRE Consulting Ltd to enhance its presence in the energy and trading sector. • The company sold its stake in HIPUS Japan JV to Mitsubishi Heavy Industries for strategic realignment. • Infosys approved a ₹18,000 crore share buyback at ₹1,800 per share, its largest ever. Strengths • Strong client base across multiple industries and countries. • Excellent cash generation and balance sheet health. • Clear digital and AI-driven strategy for next phase of growth. • Consistent shareholder returns through dividends and buybacks. Risks & Challenges • Decline in Q4 profit reflects margin pressure from rising costs and wage hikes. • FY26 growth outlook remains muted due to macroeconomic uncertainty and weak client spending. • Global IT demand slowdown could continue to weigh on short-term revenues. • Execution risk in scaling AI and automation projects while maintaining profitability. Outlook Infosys maintains strong fundamentals and leadership in digital transformation. Its AI and cloud initiatives could drive medium-term growth, but near-term revenue visibility remains weak. Margins may remain stable within the guided range, with potential upside as discretionary IT spending improves globally.