Q4 Performance Highlights

Infosys Ltd, one of India’s top IT services companies, reported a decline of 11.7% in its consolidated net profit for the fourth quarter ended March 31, 2025. The company posted a net profit of ₹7,033 crore (USD 843 million) for Q4, compared to ₹7,969 crore in the corresponding period last year.

Despite the year-on-year decline in profit, Infosys recorded a 3.3% quarter-on-quarter (QoQ) rise in net profit. Revenue for the March quarter stood at ₹40,925 crore, up 7.9% on a year-on-year (YoY) basis, but down 2% sequentially. This marks a continued trend in the Indian IT sector, where companies including TCS and Wipro also posted sequential drops in Q4 revenue.

Full-Year FY25 Financials

For the full fiscal year 2024-25, Infosys reported a marginal increase in net profit, up 1.8% to ₹26,713 crore. In terms of revenue, the company saw a growth of 4.2% in constant currency (CC) terms.

However, this performance did not meet the revenue growth guidance provided by the company at the end of the third quarter of FY25. Infosys had projected a revenue increase in the range of 4.5% to 5% in CC terms. The actual numbers fell short, indicating persistent macroeconomic challenges and cautious client spending in key markets.

Large Deal Wins and Contract Value

Despite the revenue miss, Infosys continues to see strong momentum in large deal wins. The total contract value (TCV) for large deals signed during Q4 stood at USD 2.6 billion. This reflects sustained enterprise demand for digital transformation and efficiency-oriented IT services.

CEO and Managing Director Salil Parekh emphasized the significance of the company’s deal pipeline, noting that Infosys’ focus areas in artificial intelligence (AI), cloud services, and automation are helping it stay relevant in an evolving business landscape.

Record Free Cash Flow

Another notable highlight for FY25 was Infosys achieving its highest-ever free cash flow. For the year, the company generated USD 4.1 billion in free cash flow, underscoring its operational efficiency and financial discipline amid a challenging environment.

CEO’s Statement on Strategic Focus

Commenting on the performance, Salil Parekh stated,

“We have built a resilient organisation with sharp focus on client-centricity and responsiveness to the market. Our strengths in AI, cloud, digital, and automation position us well to meet the evolving needs of our clients.”

He reiterated that Infosys is maintaining its commitment to transformation-focused capabilities and cost-efficient service delivery.

CFO’s Outlook and Market Uncertainty

Infosys CFO Jayesh Sanghrajka addressed concerns about the lower-end revenue guidance during the company’s post-results press conference. He mentioned that the company has factored in potential risks and uncertainties while preparing its outlook.

“At the bottom end of the guidance, we have baked in some deterioration in the environment, some heightened uncertainties,” Sanghrajka said.

This statement reflects the cautious optimism with which the company is approaching FY26, given geopolitical tensions and budget constraints in key client markets.

Geographical Revenue Breakdown

In terms of geographical performance, North America continued to be the largest contributor to Infosys’ overall revenue, accounting for 57.1% of the total. However, this segment saw a slight 40 basis point decline in constant currency terms year-on-year.

Meanwhile, the European region reported a healthy 15% YoY growth, highlighting increased demand from clients in that region. The rest of the world saw a 2.2% decline, while revenue from the India region surged 43%, albeit from a smaller base. The strong domestic performance reflects growing demand from Indian enterprises for digital and cloud transformation services.

Sector-Wise and Service Line Outlook

While Infosys did not release detailed sector-wise performance in this earnings summary, the company’s continued investment in digital transformation, generative AI, and cloud migration initiatives is expected to drive sectoral opportunities, especially in financial services, manufacturing, and retail.

The firm also aims to expand its automation capabilities across client operations, improving service delivery efficiency and cost structures.