Infosys Q4 results, dividend on April 17 at 3.45 pm; earnings preview

Infosys, the second largest digital services and consulting firm, will report its March quarter results on Thursday, April 17, around 3:45 pm. Its board would also recommend a final dividend, if any, for FY25.  

The IT major will host a press conference at 4:15 pm and an earnings call at 5:30 pm, the same day. 

Stock analysts are largely expecting Infosys to report a 15 per cent drop in net profit year-on-year (YoY) on double digit growth in sales for the March quarter. On a sequential basis, Infosys may likely lead the revenue decline among tier-1 companies in constant currency (CC) terms, they said.

Margin is seen falling for the IT firm due to wage hikes and visa costs, partially offset by cost optimisation and lower third-party spend.

Spending on managed services are likely to be more resilient than spending on discretionary services, said Kotak, as it noted that Infosys, like Wipro, has higher exposure to discretionary, making it a tad vulnerable in a weak demand environment.

Sharekhan pegged Infosys' profit at Rs 6,772 crore, down 15 per cent. Its sees sales for Infosys coming in at Rs 41,933 crore, up 10.6 per cent. Nuvama forecast revenue to degrow 1 per cent quarter-on-quarter (QoQ) in CC terms and 1.5 per cent QoQ in dollar terms, in-line with the implied guided range. EBIT margin seen contracting 100 bps QoQ, primarily due to wage hike. 

Nuvama sees Infosys announcing FY26 revenue growth guidance at 2–5 per cent CC YoY and margins guidance to remain at 20-22 per cent for FY26. Overall, net profit is seen falling 15.7 per cent to Rs 6,720 crore on 11 per cent YoY jump in sales at Rs 42,096 crore. Dollar revenue is seen at $4,867 million, down 1.5 per cent QoQ but up 6.6 per cent YoY. 

Foreign brokerage Nomura said all eyes would be on commentary on client discretionary spend in wake of rising macro volatility in US. It said commentary on cost takeout projects and BFSI vertical, will be crucial, as it forecast Infosys to guide 2-5 per cent YoY growth in revenues with 20-22 per cent EBIT margin band for FY26.