Infosys Ltd, India’s second-largest IT services company, announced its financial results for the fourth quarter of the fiscal year 2024–25 on Thursday, surpassing market expectations. The Bengaluru-headquartered firm reported a consolidated net profit of ₹6,525 crore, marking an 8.4% year-on-year increase, driven by large deal wins and robust performance in key verticals like BFSI and retail.
Strong Financial Performance Surpasses Estimates
The Q4 results of Infosys beat analyst projections, which had estimated a net profit of around ₹6,400 crore. The company’s revenue for the quarter stood at ₹38,738 crore, up 6.3% from the same period last year. In constant currency terms, Infosys reported a sequential growth of 2.2%, indicating improved client demand in key markets such as North America and Europe.
Key Operational Highlights
Infosys secured large deal wins worth $4.5 billion in Q4, with 47% being net new contracts. CEO Salil Parekh attributed the company’s strong quarter to a diversified client base and continued digital transformation investments. “Our focus on cost optimization and automation has helped us maintain operational efficiency amidst global macroeconomic uncertainties,” he said during the earnings call.
The company’s operating margin stood at 20.4%, slightly below the 21% recorded in the same quarter last year. However, Infosys noted that margins were stable due to a combination of currency benefits and improved employee utilization rates.
Attrition Declines, Hiring Outlook Stable
In positive news for employee metrics, Infosys reported a sharp decline in voluntary attrition, which dropped to 12.1% from 17.5% a year ago. The company also maintained a cautious hiring stance, with a net headcount addition of just over 1,500 employees in Q4. Infosys indicated it will continue with a skill-based hiring model, focusing on high-demand areas like artificial intelligence, cloud computing, and cybersecurity.
Guidance for FY26 and Market Outlook
Infosys provided a revenue growth guidance of 4–7% in constant currency for FY2025–26, and expects operating margins to remain in the 20–22% range. Analysts believe Infosys is well-positioned to weather global headwinds and benefit from increased enterprise spending on AI and digital transformation.
Following the Q4 announcement, Infosys share price rose by 3.2% in early trading on Friday, reflecting investor confidence in the company’s strong deal pipeline and positive earnings trajectory.
Conclusion
Infosys Q4 results for FY25 underscore the company’s ability to navigate economic uncertainty while delivering consistent growth. With a strong order book, improved attrition numbers, and a strategic focus on digital capabilities, Infosys remains a key player in the evolving global IT landscape. Investors and analysts alike are watching closely as the company heads into the new fiscal year with a positive outlook.
