Infosys Ltd is expected to report a mixed performance for the first quarter of fiscal 2027, with revenue likely to rise sequentially, while net profit is seen declining due to a higher base and other operating factors.
According to analysts, the IT major is expected to report modest constant currency growth, aided by acquisitions, while investors will closely track management’s commentary on fiscal 2027 guidance, artificial intelligence demand, deal wins and discretionary spending trends.
As per Bloomberg consensus estimates, Infosys is expected to report:
- Revenue of Rs 48,222 crore, up 3.9% quarter-on-quarter from Rs 46,402 crore.
- EBIT of Rs 10,124 crore, up 3.9% from Rs 9,743 crore.
- EBIT margin of 20.99%, largely unchanged from 21%.
- Net profit of Rs 7,774 crore, down 8.6% from Rs 8,501 crore in the previous quarter.
Key Things To Watch
Analysts expect constant currency revenue growth of 1%–2.5% quarter-on-quarter, including around 1% contribution from recent acquisitions.
Investors will watch for updates on the recently announced acquisition of Versent and the company’s joint venture with Telstra.
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Management commentary on the impact of geopolitical disruptions, particularly the Middle East conflict, will also be in focus, along with the outlook for AI-led revenues, demand from Europe and trends in discretionary IT spending.
Citi expects Infosys to report large deal total contract value (TCV) of around $3 billion during the quarter.
What Brokerages Say
Brokerages remain split on whether Infosys will raise or trim its fiscal 2027 revenue growth guidance.
Nuvama expects the company to upgrade its fiscal 2027 constant currency revenue growth guidance to 2.5%–4.0% from the current 1.5%–3.5%, reflecting the contribution from recent acquisitions. It also expects EBIT margin to expand by around 30 basis points due to currency tailwinds and lower provisions for doubtful debts.
Jefferies expects first-quarter revenue to grow 2.5% quarter-on-quarter in constant currency, including around 100 basis points of inorganic contribution. It expects Infosys to raise its fiscal 2027 revenue growth guidance by 100 basis points to 2.5%–4.5% while maintaining its EBIT margin guidance of 20%–22%.
Axis Securities expects constant currency revenue growth of 2.1% quarter-on-quarter, supported by seasonal strength and acquisition-led growth, with no meaningful currency headwinds or tailwinds.
However, Goldman Sachs believes Infosys may effectively lower its organic growth outlook. While the acquisition is expected to add roughly 120 basis points to fiscal 2027 revenue growth, the brokerage expects the company to keep the upper end of its overall guidance unchanged, implying a 50–100 basis point reduction in the underlying organic growth outlook.
HSBC and Citi also see the possibility of Infosys trimming the upper end of its fiscal 2027 revenue guidance, although both expect the company’s EBIT margin guidance of 20%–22% to remain unchanged.
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