Infosys ADRs Decline 5.5% in Pre-Market Trading Amid FY27 Growth Outlook

Infosys Forecasts Lower Revenue Growth for Fiscal 2027

Infosys Ltd, India's second-largest IT services firm, reported a 13.4% increase in quarterly revenue for the three months ended March, surpassing analysts' average estimate. However, the company's forecast of 1.5%-3.5% revenue growth for fiscal 2027 fell short of brokerages' estimate of 2%-4% for the year.

The forecast signals a more cautious demand environment in the near term. Despite this, the company had earlier flagged a "good outlook" in the banking and energy segments for the fiscal year due to artificial intelligence-led demand.

The company's revenue for the quarter rose to Rs 46,402 crore, compared to analysts' average estimate of Rs 46,030 crore, according to data compiled by LSEG. This represents a significant improvement over the previous quarter.

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Revenue Growth Comparison

Infosys' net profit jumped 27.8% to Rs 8,501 crore for the fourth quarter ended March 31, 2026. The company also announced a dividend of Rs 25.

At the operating level, earnings before interest and tax (EBIT) climbed 16.6% quarter-on-quarter to Rs 9,743 crore. EBIT margin expanded significantly to 21% from 18.4% in the previous quarter, reflecting better operational efficiency.

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Large order bookings, or deals over $30 million, stood at $3.2 billion during the quarter, compared with $4.8 billion in the previous quarter and $2.6 billion in the year-ago period.

Infosys shares closed nearly 3% lower at Rs 1,231.8 apiece on April 23, following the company's forecast. The shares have lost 24.4% so far this year.