Infosys Q1 results at 3.45 pm today; 5 things to watch, earnings preview

The Salil Parekh-led Infosys is likely to report 4-7 per cent year-on-year (YoY) rise in net profit for the June quarter on a similar rise in sales, with stock investors expected to keenly track any update on FY26 guidance, impact of tariffs on deal bookings and outlook on discretionary spending by clients. Deal wins are pegged at $3 billion, while Ebit margin may contract for the quarter sequentially, analysts said. Infosys is seen raising its FY26 guidance for revenue to 1-3 per cent. The IT major is scheduled to report its earnings around 3:45 pm today.

HSBC expects Infosys to report 3.6 per cent YoY rise in net profit at Rs 6,606 crore compared with Rs 6,374 crore in the same quarter last year. Sales are seen rising 5.5 per cent YoY to Rs 41,481 crore against Rs 39,315 crore in the year-ago quarter.

On QoQ basis, expect dollar growth is seen at 2.5 per cent, driven by positive 140 bps impact of constant currency (CC) and inorganic contribution of 30 bps.

"We expect 1 per cent of organic acceleration for Infosys extant business. YoY basis, we expect revenues to be largely flat in organic CC terms. EBIT margins are likely to decline by 50 bps QoQ due to the remainder of wage hike, which was taken in 1Q. Currency should have marginal negative impact to margins as well," HSBC said.

Kotak Institutional Equities expects Infosys to raise FY2026 revenue growth guidance to 1-3 per cent from 0-3 per cent earlier, after baking in 40 bps from the MRE and The Missing Link acquisitions. It sees large deal total contract value TCV at $3 billion , a decline on YoY comparison.

"We expect investor focus on—(1) program cancellations and impact on demand from verticals directly impacted by imposition of tariffs by the US, (2) program cancellations, if any, (3) strength of deal pipeline, especially noting muted large deal wins over the past three quarters, (4) pace of enterprise AI adoption and resultant pricing and deflationary pressure, (5) margin levers in FY2026 and (6) revenues from sale of thirdparty items," Kotak said.

This brokerage sees profit rising 7.7 per cent YoY to Rs 6,857 crore on 6.4 per cent YoY rise in sales at Rs 41,828 crore.

InCred Equities sees profit at Rs 6,887 crore, up 8 per cent. It sees sales at Rs 41,846 crore, up 6.4 per cent. Ebit margin is seen at 21.2 per cent. The EBIT margin may benefit from operating leverage but partly offset by rupee appreciation, it said, noting that 4QFY25 EBIT margin had a one-off tailwind from reversals and lower variable payout.