Infosys saw a 1.92% increase in its share price after reporting a 3% rise in its net profit for the fourth quarter of FY25, which reached Rs 7,038 crore. However, its revenue from operations dropped by 2% quarter-on-quarter (QoQ), totaling Rs 40,925 crore for the quarter ending March 31, 2025.
Compared to the same quarter last year, Infosys’ net profit decreased by 11.74%, despite a 7.91% increase in revenue. Profit before tax (PBT) fell slightly, from Rs 9,670 crore in Q3 FY25 to Rs 9,663 crore in Q4 FY25. On a yearly basis, PBT dropped by 5.63%.
Operating profit for Q4 FY25 was Rs 8,575 crore, which was 3.78% lower than the previous quarter but 12.51% higher compared to last year. The operating margin also slightly decreased to 21% from 21.3% in Q3 FY25, but it was still higher than 20.1% in Q4 FY24.
In constant currency terms, revenue grew by 4.8% compared to last year but declined by 3.5% from the previous quarter. In dollar terms, the company earned $4.73 billion, marking a 3.6% year-on-year growth. Free cash flow also increased by 5.2%, reaching $892 million.
Infosys signed large deals worth $11.6 billion in Q4 FY25, with 56% of these being new deals. The total number of clients at the end of March 2025 was 1,869, slightly down from 1,882 clients at the same time last year.
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For the full fiscal year FY25, Infosys saw a 1.91% rise in its consolidated net profit, totaling Rs 26,750 crore, on the back of a 6.06% increase in revenue, which reached Rs 1,62,990 crore. The company also reported its highest-ever free cash flow at $4.09 billion, up 41.8% from the previous year.
Looking ahead to FY26, Infosys projects revenue growth of 0%-3% in constant currency and expects its operating margin to be between 20%-22%.
The company’s voluntary attrition rate for IT services was 14.1% in Q4 FY25, higher than the 13.7% in the previous quarter and 12.6% in Q4 FY24.
Infosys’ board also declared a final dividend of Rs 22 per share for FY25.
Salil Parekh, CEO and MD of Infosys, expressed that the company has built a strong, resilient organization focused on client needs and market responsiveness. He credited their success to client trust and employee dedication. He highlighted the company’s strengths in AI, cloud, and digital services, as well as cost efficiency, automation, and consolidation.
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Jayesh Sanghrajka, CFO of Infosys, emphasized the company’s efforts in efficiency and cost management, which helped expand operating margins by 0.5% in FY25. He also noted the highest free cash flow generation in the company’s history.
In other news, Infosys’ subsidiary, Infosys Nova Holdings, has agreed to acquire MRE Consulting, a technology and business consulting company, for up to $36 million. This acquisition will add over 200 professionals with expertise in energy and commodity trading risk management.
Additionally, Infosys Singapore has agreed to acquire a 100% stake in The Missing Link, an Australian cybersecurity services provider, for up to AUD 98 million. The acquisition will enhance Infosys’ cybersecurity capabilities with skilled professionals and a state-of-the-art security operations center.
Lastly, Mitsubishi Heavy Industries (MHI) has invested in Infosys’ joint venture, HIPUS, by acquiring a 2% stake, further strengthening Infosys’ presence in Japan.
Infosys remains a global leader in digital services and consulting.
