- Infosys reports Q1 FY27 revenue, profit, margin growth.
- Secured $3.6 billion deals, AI services contribute 8.2% revenue.
- Ashiss Kumar Dash appointed CEO Designate, effective immediately.
On Thursday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index declining 126.65 points, or 0.53 per cent, to 23,869.
Infosys share price traded lower by 0.45 per cent to Rs 1,047.40 despite the company reporting healthy first-quarter earnings and announcing a leadership transition plan.
Infosys Q1 FY27 Results On a consolidated basis, Infosys reported revenue of Rs 48,211 crore for Q1 FY27, registering a 14.03 per cent YoY increase from Rs 42,279 crore in the corresponding quarter last year.
Revenue also increased 3.90 per cent sequentially from Rs 46,402 crore reported in Q4 FY26. The company’s gross profit rose 16.27 per cent YoY to Rs 15,178 crore, while operating profit increased 15.45 per cent YoY to Rs 10,163 crore.
Operating margin improved to 21.1 per cent from 20.8 per cent in the year-ago quarter. Profit before Tax (PBT) increased 13.22 per cent YoY to Rs 11,028 crore from Rs 9,740 crore. Net profit attributable to shareholders rose 12.25 per cent YoY to Rs 7,769 crore, compared with Rs 6,921 crore in Q1 FY26.
Basic EPS increased 14.91 per cent YoY to Rs 19.19, while diluted EPS also grew 14.93 per cent YoY to Rs 19.17.
On a sequential basis, net profit declined 8.61 per cent from Rs 8,501 crore, while basic EPS fell 8.66 per cent from Rs 21.01, reflecting normal quarterly seasonality.
However, revenue continued to grow sequentially by nearly 4 per cent. Also Read – Single-Digit PE Specialty Chemicals Stock Hits 20% After Q1 FY27 Profit Jumps 689% YoY; Declares 100% Interim Dividend
Operational Highlights
Infosys reported 2.8 per cent YoY revenue growth in reported currency and 2.4 per cent in constant currency, while sequential growth stood at 0.8 per cent in reported terms and 1.0 per cent in constant currency.
The company maintained a healthy operating margin of 21.1 per cent during the quarter. Infosys secured large deal wins worth USD 3.6 billion, of which 61 per cent were net new deals, highlighting continued demand across digital transformation and AI-led engagements.
The company generated free cash flow of USD 955 million (Rs 9,051 crore) during the quarter, while AI-led services contributed 8.2 per cent of total revenue, reflecting increasing adoption of artificial intelligence across client engagements.
Business Performance Among business verticals, Life Sciences delivered the strongest growth with 26.3 per cent YoY revenue growth, followed by Financial Services at 2.9 per cent, Communication at 2.5 per cent, and Manufacturing at 1.7 per cent.
Retail declined 1.5 per cent, while the Others segment declined 12.6 per cent. Geographically, Europe recorded the highest growth at 4.8 per cent YoY, followed by North America at 2.7 per cent.
Revenue from India declined 12 per cent, while the Rest of the World grew 1.9 per cent. Client and Employee Metrics Infosys ended the quarter with 2,027 active clients, adding 155 new clients during Q1 FY27.
The company had 1,026 clients contributing over USD 1 million annually, 333 clients above USD 10 million, 85 clients above USD 50 million, and 41 clients contributing more than USD 100 million in annual revenue.
The company’s total employee count stood at 328,062, while voluntary attrition in IT services improved to 13.0 per cent from 14.4 per cent a year earlier.
Women represented 39.6 per cent of the workforce.
Infosys CEO Succession Plan
The Board appointed Ashiss Kumar Dash as Chief Executive Officer Designate, effective immediately.
The company intends to appoint him as Chief Executive Officer and Managing Director from April 1, 2027, subject to statutory approvals, succeeding Salil Parekh upon completion of his second term.
Ashiss Kumar Dash currently serves as Executive Vice President and Global Head of Services, Utilities, Resources, Energy & Enterprise Sustainability.
He has spent more than 30 years at Infosys, leading global businesses across delivery, operations, customer relationships, AI transformation and sustainability initiatives. He is an IIT Kharagpur alumnus and has also completed executive leadership programmes at Stanford University and London Business School.
Other Board Decisions
The Board approved the grant of 9,836 Restricted Stock Units (RSUs) to eligible new hires under the 2015 Incentive Compensation Plan.
The company also allotted 4,77,767 equity shares following the exercise of employee stock units, increasing its paid-up share capital to 4,05,80,56,597 equity shares.
Further, Infosys approved the incorporation of a step-down wholly owned subsidiary in Singapore and amended its Enterprise Risk Management Policy.
About Infosys
Infosys Ltd is one of India’s largest information technology services companies, providing digital transformation, cloud, artificial intelligence, consulting, engineering and business process management services to enterprises across more than 59 countries. The company serves clients across financial services, manufacturing, retail, communication, healthcare, energy and public services sectors.
With a workforce of more than 328,000 employees, Infosys is focused on AI-first transformation, digital engineering, cloud services and enterprise modernization. The company continues to expand its global footprint through strategic acquisitions, innovation, and long-term client partnerships while maintaining a strong balance sheet and cash generation. Share your thoughts on Infosys’ Q1 FY27 results and leadership transition in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.
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