Infosys Q2 results: IT heavyweight Infosys on Thursday, October 16, reported a 13.2 per cent year-on-year (YoY) rise in its consolidated net profit (after non-controlling interests) to ₹7,364 crore for the July-September quarter of the current financial year (Q2FY26). In the same quarter last year, the company’s profit was ₹6,506 crore.
The company’s consolidated revenue for the quarter under review rose 8.6 per cent YoY to ₹44,490 crore from ₹40,986 crore in Q2FY25.
“We had robust all-round performance in Q2 – strong growth, resilient margins, very high cash generation and 13.1 per cent EPS growth year on year in rupee terms. We continue to make strategic investments to futureproof the business with a tight focus on execution, amidst high uncertainty”, said Jayesh Sanghrajka, CFO, Infosys.
“In line with our capital allocation policy, we have announced a share buyback for ₹18,000 crores during the quarter and an interim dividend of ₹23 per share, an increase of 9.5 per cent over the last fiscal,” Sanghrajka said.
Infosys Q2 results: Key highlights
Let’s take a look at the five key takeaways of Infosys Q2 earnings:
1. Revenue and profitability
In constant currency, the company’s revenue grew by 2.2 per cent quarter-on-quarter (QoQ) and 2.9 per cent YoY.
Operating profit for Q2FY26 rose by 8.1 per cent to ₹9,353 crore from ₹8,649 crore in Q2FY25. Operating margin, however, slipped to 21 per cent from 21.1 per cent YoY.
Among business segments, the revenue from the financial services rose 5.4 per cent YoY in cc terms. Revenue from the hi-tech and the manufacturing segments jumped 8.6 per cent and 6.6 per cent YoY, respectively, in CC.
Among the key markets, revenue from North America increased by 2 per cent YoY in CC, while the European market grew by 6.3 per cent YoY. Revenue from India also saw a decent 6.8 per cent YoY rise in CC.
2. Headcounts and attrition
The total number of employees by the end of Q2FY26 was 3,31,991 compared to 3,23,788 by the end of Q1FY26. Hence, employee headcount increased by 8,203 during the quarter.
The last-twelve-month voluntary attrition in the IT services was 14.3 per cent in the September quarter compared to 14.4 per cent in the June quarter and 12.9 per cent in the September quarter of the previous financial year.
3. Deal TCV
The total contract value (TCV) of large deal wins stood at $3.1 billion in Q2, compared to $3.8 billion in the June quarter.
Out of the total deal TCV in the quarter, as much as 67 per cent was net new.
“We have now delivered two consecutive quarters of strong growth, demonstrating our unique market positioning and client relevance. Strong deal wins, with 67 per cent net new in Q2, reflect our deep understanding of clients’ priorities to deliver value from AI in this environment”, said Salil Parekh, CEO and MD of Infosys.
4. FY26 guidance
Infosys slightly increased its revenue guidance but maintained its margin guidance for FY26.
Infosys expects revenue growth of 2-3 per cent in constant currency compared to 1-3 per cent estimated earlier. Operating margin is projected to be in the range of 20-22 per cent in FY26.
5. Infosys Q2 dividend
Infosys announced a dividend of ₹23 per share for the September quarter. It has fixed October 27 as a record date to determine the eligibility of shareholders to receive the said dividend. November 7 will be the dividend payout date.
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