Infosys, India's second-largest IT services company, announced its Q3 FY26 results, revealing a mixed performance. While the company's consolidated revenue from operations witnessed a surge, its net profit experienced a decline.
The IT giant reported a consolidated net profit of ₹6,654 crore for the third quarter, a 2.2% decrease compared to ₹6,806 crore in the same period last year. Sequentially, the profit fell by 9.64%. The profit was impacted by exceptional expenses of ₹1,289 crore due to the impact of labour codes in the reporting quarter. In contrast, the company's consolidated revenue from operations saw an 8.9% year-on-year increase, reaching ₹45,479 crore compared to ₹41,764 crore in the corresponding quarter of the previous year. On a sequential basis, revenue increased by 2.22%.
Despite the dip in net profit, Infosys has raised its revenue growth guidance to 3.0%-3.5% in constant currency for FY26, revised upwards from the previous guidance of 2% to 3%.
Other key highlights from the Q3 results include:
- Attrition Rate: Infosys' voluntary attrition rate dropped to 12.3% in Q3 FY26, a 140 basis points decrease compared to 13.7% in the same quarter last year. On a quarter-on-quarter basis, the attrition rate fell by 2%.
- Large Deal TCV: The total contract value (TCV) of large deals signed during the quarter stood at $4.8 billion.
- Strategic Collaboration: Infosys extended its strategic collaboration with Metro Bank to transform the bank's finance operations with a suite of Workday solutions.
Infosys CEO and MD Salil Parekh commented on the results, stating, “Central to this journey is our commitment to reskill, transform and empower our dedicated human resource pool to drive success in an AI augmented world”.
Ahead of the earnings announcement, Infosys shares settled 0.62% higher at ₹1,608.90 apiece on the National Stock Exchange (NSE). Several other companies, including HDFC AMC, ICICI AMC, and Union Bank of India, also announced their quarterly results on the same day.
