Infosys Q4 Results Review: Poor Quarter But Commentary Springs A Surprise; Motilal Oswal Maintains 'Neutral'

Infosys guided for FY26 CC revenue growth of 0-3%. This guidance implies a CQGR of +0.5% to +1.

5% over the next four quarters. Large deal total contract value stood at $2.6 billion versus $2.



5 billion in Q3, up 4% QoQ. The book-to-bill ratio was 0.5x.

Net new TCV was down 24.7% QoQ.NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies.

These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. Motilal Oswal ReportInfosys Ltd. reported Q4 FY25 revenue of $4.

7 billion, down 3.5% QoQ constant currency/up 4.8% YoY CC versus our estimate of 1.

0% QoQ CC decline. For full year, revenue stood at $19.2 billion, up 4.

2% YoY CC. Ebit margins stood at 21% versus our estimates of 20.6%.

Ebit declined 3.8% QoQ/up 12.5% YoY to Rs 85 billion (estimate Rs 87 billion).

PAT came in at Rs 68 billion, flat QoQ/up 12.1% YoY, above our estimate of Rs 67 billion. The company guided for FY26 CC revenue growth of 0-3%.

This guidance implies a CQGR of +0.5% to +1.5% over the next four quarters.

Large deal total contract value stood at $2.6 billion versus $2.5 billion in Q3, up 4% QoQ.

The book-to-bill ratio was 0.5x. Net new TCV was down 24.

7% QoQ. For FY25, revenue/Ebit/PAT grew 6.1%/8.

4%/8.8% YoY in INR terms. We expect revenue/Ebit/PAT to grow 5.

4%/4.7%/3.9% YoY in Q1 FY26.

We reiterate our Neutral rating on Infosys with a target price of Rs 1,600, implying a 13% potential upside.Click on the attachment to read the full report:Infosys Lets Go Of More Entry-Level Employees In Fresh Round Of Layoffs DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way.

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