Infosys FY27 Wage Hikes Remain Uncertain, Timing and Quantum Indeterminate: CFO Sanghrajka
Infosys Delays Decision on Wage Hikes Amid Cautious IT Services Growth
Infosys has yet to take a call on wage hikes for the financial year 2026-27, with both the timing and quantum still under review. The Bengaluru-headquartered company's chief financial officer, Jayesh Sanghrajka, made this announcement at a post-earnings conference.
The company's decision comes at a time when growth across the IT services sector has been in the low single-digits for the third fiscal year in a row. Infosys typically reviews compensation annually, but has taken a more measured approach in recent cycles as growth visibility weakened.
In deciding on salary revisions, the company will weigh several parameters, including business performance, industry benchmarks, inflation trends, and employee morale. This approach is consistent with the company's cautious stance on discretionary spending and slower deal conversions across clients. Infosys has guided for 1.5 percent to 3.5 percent revenue growth in FY27.
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| Revenue Growth | FY26 | FY27 |
|---|---|---|
| Low Single-Digits | 1.5% - 3.5% |
Infosys' deal pipelines remain healthy, but decision-making cycles continue to be elongated, creating pressure on margins and cost structures. This has prompted companies to be more selective in areas such as hiring and compensation. Despite this, the company reiterated its plans to maintain hiring momentum.
The company added over 20,000 freshers in FY26 and expects to hire at least a similar number this fiscal. Headcount trends are a function of demand and utilization levels, and may fluctuate on a quarterly basis. Infosys last rolled out 6-8 percent annual hikes in 2025 in India, with overseas raises at low single digits.
On April 23, Infosys reported a 27.8 percent quarter-on-quarter rise in net profit at Rs 8,501 crore. Revenue for the March quarter came in at Rs 46,402 crore, rising 2 percent sequentially. Earnings before interest and tax (EBIT) stood at Rs 9,743 crore, up 16.6 percent. EBIT margin expanded to 21 percent from 18.4 percent in the previous quarter.
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Investor Takeaway
Infosys has not yet taken a call on wage hikes for FY27, with timing and quantum still under review.
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