Infosys Q2FY27 net profit rises 6.2 per cent to Rs 7,823 crore; cuts revenue guidance

IT major Infosys on Friday posted a 62 per cent increase in its consolidated net profit at Rs 7823 crore for the second quarter ended September 30 2026 led by an increasing share of AIled projects in its revenue mix according to news agency PTIThe Bengaluruheadquartered company had reported a net profit of Rs 7364 crore in the corresponding quarter in the previous yearRevenue guidance reducedWhile it reported a stable operating margin of 21 per cent year on year Infosys trimmed its revenue guidance for the rest of the financial year in 12 per cent range from 15 to 3 per cent projected earlier citing pricing pressureBased on our Q2 performance and revised outlook for the rest of the year our revenue growth guidance is 1 per cent to 2 per cent yearoveryear in constant currency terms Operating margin guidance remains at 20 per cent to 22 per cent for the year Infosys CEO and MD Salil Parekh saidAccording to Infosys CFO Jayesh Sanghrajka the companys operating margins of 21 per cent in the second quarter came amid heightened volatilityFocus on cost and operational efficiency measures while making the required investments has led to stable margins Free cash flow of USD 928 million representing 1133 per cent of net profit underscores the financial strength of the business The Board has announced an interim dividend of Rs 26 per share an increase of 13 per cent from last year Sanghrajka saidConsolidated revenue from operations rose 102 per cent to Rs 49244 crore during the quarter under review from Rs 44490 crore in the yearago periodSegmentwise growthAmong the revenues from client geography North America slipped 16 per cent India business declined 105 per cent while it reported 39 per cent growth in Europe and 151 per cent rise in the rest of the worldThe companys life sciences vertical grew 325 per cent its energy utilities resources and services business rose 74 per cent while it registered a growth of 44 per cent in communication and 23 per cent increase in the financial services segment However the hitech segment declined 175 per cent and the manufacturing vertical dropped 14 per centThe company expects the demand softness to continue in sectors such as retail and hightechIf you look at our guidance our current guidance our last guidance was 15 per cent to 3 per cent We have clearly called out at 15 per cent We expect even more uncertainty Our Q2 has been softer and our volume continues to remain softer We have also seen rising pressure on the back of competitive intensity and a higher ask on productivity All that is baked into our revised guidance as we look forward Sanghrajka saidIn the next half we will have an impact coming from compensation That will have a headwind We will see continued intensity on pricing so we will see that as a headwind We will continue working on Project Maximus to offset as much as possible from that Sanghrajka saidHiring targetThe company added 4000 new employees and Parekh said We have 8000 college graduates we hired in the quarter For the full year the target remains clear at approximately 20000 like last year We have already done more than half in the first half of the year So we think this dynamic will continue in the way we scaleThe company has around 13 per cent or roughly 45000 people who need to be backfilled either laterally or with freshers according to the CFOWe are working at 85 per cent utilisationFresher typically takes six to eight months by the time we train them and deploy them to the project so we do have to plan ahead of the time to make that which is getting reflected in net headcount increase Sanghrajka saidThe US had earlier this month suspended eight IT firms including Infosys from PERM to apply for green cards for foreign workers Parekh said the majority of employees in the US have been hired locally and it will increase over a period of timeNew contractsThe company secured large contracts worth USD 52 billion or approximately Rs 49000 crore including a mega deal of over USD 2 billion approximately around Rs 19000 crore for 7 years Parekh saidThis deal USD 2 billion is expected to contribute to over 1 per cent revenue growth in the coming financial year Our AI revenue was 105 per cent and grew 29 per cent quarteronquarter As enterprises move to AI adoption at scale the strong growth in AI revenues is a recognition of our differentiated market positioning and client confidence he saidFor Infosys Parekh said cybersecurity is a large opportunity and the company is helping some clients build protection using frontier AI modelsWith inputs from PTI