Infosys Q4 FY25 Results: Profit Slips 12% to ₹7,033 Crore; Revenue Climbs 8%

Bengaluru | April 17, 2025 —
India's second-largest IT services company, Infosys, reported a decline of 12% in its net profit for the fourth quarter of FY25, bringing the figure down to ₹7,033 crore. Despite the profit fall, the company managed to achieve an 8% year-on-year increase in revenue, totaling ₹40,925 crore.

Factors Behind Profit Decline

The drop in profits has been attributed to several factors, including macroeconomic challenges and slower client decision-making in the discretionary services sector. These challenges were compounded by a cautious approach in several key verticals, particularly Retail and Life Sciences, which saw a dip in revenue during the quarter.

However, the company experienced growth in the Banking, Financial Services, and Insurance (BFSI) and Manufacturing sectors, which have traditionally been strong drivers of Infosys' performance.

Outlook for FY26: Conservative Projections

Looking ahead, Infosys has projected flat to 3% revenue growth for the fiscal year 2026, well below analysts' expectations of a 2-4% increase. The company's leadership has cited economic uncertainty and tighter client budgets as reasons for their more conservative revenue guidance.

Focus on AI and Cost Efficiency

In the face of these challenges, Infosys is focusing on enhancing its generative AI capabilities and driving cost efficiency across its global operations. The company is also investing heavily in expanding its capabilities to serve clients in key markets and large deals, which are expected to play a crucial role in its strategy going forward.

Key Financial Highlights:

Net Profit: ₹7,033 crore (down 12% YoY)

Revenue: ₹40,925 crore (up 8% YoY)

Operating Margin: 20.1%

Large Deal Wins: $2.6 billion (down from $4.5 billion YoY)

Infosys’s Resilience Amid Economic Challenges

Despite the profit drop, Infosys' strategic initiatives to build AI-driven solutions and diversify its services have positioned the company well for future growth. The company’s proactive approach to addressing market shifts, along with its continued focus on operational excellence and innovative solutions, will be key in navigating these uncertain times.