Infosys Q3 results: Profit slips 2% YoY to Rs 6,654 crore; revenue up 9%

Infosys Ltd on Wednesday reported a 2.23 per cent year-on-year (YoY) fall in its consolidated net profit (attributable to owners) for the third quarter of the current fiscal. During the quarter under review, profit came at Rs 6,654 crore as against Rs 6,806 crore in the year-ago period.

However, the IT major's revenue from operations climbed 8.89 per cent to Rs 45,479 crore in Q3 FY26 compared to Rs 41,764 crore in the corresponding period last year.

Infosys guided for revenue growth of 3-3.5 per cent in constant currency (CC) terms for FY26, while maintaining an operating margin outlook of 20-22 per cent.

The IT firm reported deal wins worth $4.8 billion in Q3, with 57 per cent contributed by net new deals. Infosys also flagged an impact of Rs 1,289 crore on its earnings due to the implementation of new labour codes.

"The adjustments for the Labour Codes, notified by the Government of India on November 21, 2025, resulted in an increase in gratuity liability from past service costs and a rise in leave liability, aggregating to $143 million (Rs 1,289 crore), which has been recognised in the consolidated statement of comprehensive income," Infosys stated.

Commenting on the performance, Salil Parekh, Chief Executive Officer and Managing Director, said the company delivered a strong third quarter driven by its differentiated capabilities in enterprise AI.

"Infosys delivered a strong Q3 performance demonstrating how our differentiated value propositions in enterprise AI, through Infosys Topaz, are consistently driving higher market share," Parekh said. He added that clients increasingly see Infosys as a strategic AI partner with proven expertise, innovation capabilities and strong delivery credentials.

"Central to this journey is our commitment to reskill, transform and empower our dedicated human resource pool to drive success in an AI-augmented world," he also stated.

Chief Financial Officer Jayesh Sanghrajka said the company's performance was broad-based during the quarter. "Our performance was broad-based in Q3 with 0.6 per cent sequential revenue growth, 0.2 per cent adjusted operating margin expansion, stellar large deal wins at $4.8 billion and robust adjusted free cash generation at $965 million in a seasonally weak quarter," Sanghrajka said.

The quarterly earnings were out post-market hours today. Earlier in the day, Infosys shares rose 0.62 per cent to close at Rs 1,608.90.

Meanwhile, Nuvama Institutional Equities stated that Infosys saw the highest mutual fund (MF) selling in December 2025. The institutional class owned 82.6 crore Infosys shares at the end of December 2025, compared with 87.90 crore shares at the end of November 2025.