Infosys Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Infosys Ltd filed with BSE on 27 Apr 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Infosys reported full-year FY26 revenue growth of 3.1% in constant currency and Q4 growth of 4.1% year-on-year, with operating margin stable at 21% for the year and 20.9% in Q4. Management guided FY27 revenue growth of 1.5% to 3.5% in constant currency and operating margin of 20% to 22%, citing growth in AI services and Financial Services alongside continued competitive intensity and productivity-related compression. Large deal wins totaled $14.9 billion for the year, 28% higher than the prior year, with 55% net new.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Full year revenue growth: 3.1% (FY26)
p. 4
“We had growth of 3.1% for the full year in constant currency terms.”
Salil Parekh, page 4 of the filed PDF · View the filing
Q4 revenue growth: 4.1% (Q4 FY26)
p. 4
“On Q4, our growth year-on-year was 4.1% in constant currency terms.”
Salil Parekh, page 4 of the filed PDF · View the filing
Large deals TCV: $14.9 bn (FY26)
p. 4
“Large deals were very good, $14.9 bn for the full year, $3.2 bn for the fourth quarter.”
Salil Parekh, page 4 of the filed PDF · View the filing
Large deals TCV: $3.2 bn (Q4 FY26)
p. 4
“Large deals were very good, $14.9 bn for the full year, $3.2 bn for the fourth quarter.”
Salil Parekh, page 4 of the filed PDF · View the filing
Operating margin: 21% (FY26)
p. 7
“So if you look at the margins, the full year margins is at 21%.”
Jayesh Sanghrajka, page 7 of the filed PDF · View the filing
Operating margin: 20.9% (Q4 FY26)
p. 7
“The quarterly margins also 20.9%, very close to 21%.”
Jayesh Sanghrajka, page 7 of the filed PDF · View the filing
Headcount change sequential: down 8,000 (Q4 FY26)
p. 12
“So if you look at the headcount, our headcount sequentially has gone down by 8,000 employees but if you look at on a year-on-year basis it has still grown by 5,000.”
Jayesh Sanghrajka, page 12 of the filed PDF · View the filing
Fresher hiring: more than 20,000 (FY26)
p. 8
“The last year, we had announced 20,000 for FY26 and we have hired more than 20,000 freshers from the market.”
Jayesh Sanghrajka, page 8 of the filed PDF · View the filing
AI revenue share: 5.5% (Q3 FY26)
p. 6
“5.5% is that, yeah in Q3”
Salil Parekh, page 6 of the filed PDF · View the filing
Voluntary attrition: 12.6% (FY26)
p. 29
“Voluntary attrition reduced by 1.5% to 12.6% for the year, reflecting continued softness and our interventions toward talent retention.”
Jayesh Sanghrajka, page 29 of the filed PDF · View the filing
Free cash flow: $3.5 bn (FY26)
p. 28
“Free cash flow adjusted for the Labor Code and income tax refunds stood at $3.5 bn for FY and $882 mn for Q4.”
Jayesh Sanghrajka, page 28 of the filed PDF · View the filing
Final dividend: INR25 per share (FY26)
p. 30
“In line with our capital allocation policy, board has proposed a final dividend of INR25 per share which will result in a total dividend of INR48 per share, an increase of 11.6% over last year, once the final dividend is approved by the shareholders.”
Jayesh Sanghrajka, page 30 of the filed PDF · View the filing
Headcount: over 328,000 (FY26)
p. 29
“Headcount at the end of the year was over 328,000.”
Jayesh Sanghrajka, page 29 of the filed PDF · View the filing
ROE: 31.6% (FY26)
p. 29
“Q4 yield on cash and investments balance was at 6.2% and 6.7% for the year. ROE stood at 31.6%.”
Jayesh Sanghrajka, page 29 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — 1.5% to 3.5% · FY27
stated firmly by Salil Parekh
p. 4
“Our revenue growth guidance for the financial year 2027 is 1.5% to 3.5% growth year-on-year in constant currency terms.”
Salil Parekh, page 4 of the filed PDF · View the filing
Operating margin — 20% to 22% · FY27
stated firmly by Salil Parekh
p. 4
“Our operating margin guidance for financial year '27 is 20% to 22%.”
Salil Parekh, page 4 of the filed PDF · View the filing
Growth in Financial Services and EURS vertical — FY27
stated conditionally by Salil Parekh
p. 4
“We expect acceleration of growth in Financial Services and in Energy, Utility, Resources and Services vertical.”
Salil Parekh, page 4 of the filed PDF · View the filing
Fresher hiring — at least 20,000 freshers · FY27
stated firmly by Jayesh Sanghrajka
p. 8
“This year also, we are expecting at least 20,000 freshers to be hired.”
Jayesh Sanghrajka, page 8 of the filed PDF · View the filing
Effective tax rate — 29% to 30% · FY27
stated firmly by Jayesh Sanghrajka
p. 29
“We expect effective tax rates for the FY27 to be in the range of 29% to 30%.”
Jayesh Sanghrajka, page 29 of the filed PDF · View the filing
Onsite mix reduction — 0.75% to 1% · FY27
stated firmly by Jayesh Sanghrajka
p. 31
“Further reduction in onsite mix by 0.75% to 1%, we expect third-party cost for FY27 to remain at similar levels as FY26.”
Jayesh Sanghrajka, page 31 of the filed PDF · View the filing
Impact of acquisitions on operating margin — approximately 0.7% · post closure, annualized
stated conditionally by Jayesh Sanghrajka
p. 31
“The impact of Optimum Healthcare, Stratus and Versent on operating margin will be approximately 0.7% on a full year annualized basis post closure.”
Jayesh Sanghrajka, page 31 of the filed PDF · View the filing
Margin improvement — medium to long term
stated as an aspiration by Jayesh Sanghrajka
p. 9
“And our endeavour is to improve margins on a medium to long term period.”
Jayesh Sanghrajka, page 9 of the filed PDF · View the filing
H1 vs H2 seasonality — FY27
stated firmly by Salil Parekh
p. 27
“We expect H1 to be stronger than H2 consistent with our normal seasonality.”
Salil Parekh, page 27 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Only the Stratus acquisition is included at roughly 25 basis points; Optimum and the Australian JV are excluded pending regulatory approvals.
Answered by Jayesh Sanghrajka
Asked by Ritu Singh: How much of the acquisitions is baked into the FY27 guidance?
p. 7
“The acquisition with an insurance company which is Stratus, which is already closed and it is baked in the guidance. What is baked into the guidance is approximately 25 basis points or a quarter point of the guidance.”
Jayesh Sanghrajka, page 7 of the filed PDF · View the filing
Management declined to disclose the figure.
Answered by Salil Parekh
Asked by Chandra R. Srikanth: Has AI revenue touched double digits of total revenue?
p. 11
“Is it 10% or 50%, we are not sharing the number.”
Salil Parekh, page 11 of the filed PDF · View the filing
The prior quarter included a large mega deal with a UK client, making the comparison lumpy rather than indicating a real decline.
Answered by Jayesh Sanghrajka
Asked by Shristi Achar: Why is there a sequential contraction in large deal TCV this quarter?
p. 16
“So if you look at last quarter, we had a mega deal with one of the UK clients that we had. And that is the kind of increased the overall number. If you take that deal out, the numbers are comparable.”
Jayesh Sanghrajka, page 16 of the filed PDF · View the filing
Management said the estimate of roughly 200-225 basis points is approximately correct but timing of closure is uncertain.
Answered by Salil Parekh
Asked by Jas Bardia: What impact will the pending acquisitions have on FY27 growth once they close?
p. 23
“I think the maths what you are saying on a full year basis is approximately correct.”
Salil Parekh, page 23 of the filed PDF · View the filing
Better visibility into client behavior this year allowed a tighter range, and the outlook reflects a mix of growth drivers and headwinds including the manufacturing client ramp-down and onsite mix reduction.
Answered by Jayesh Sanghrajka
Asked by Ankur Rudra: Why is the FY27 guidance range narrower than last year's, and what explains the organic slowdown?
p. 33
“So where we stand today, I think there is a better clarity in terms of what happened, the environment has been like this for last few quarters and we know how clients are behaving at least at this point in time.”
Jayesh Sanghrajka, page 33 of the filed PDF · View the filing
Yes, AI projects generally come at better pricing reflected in better margins, though they also carry higher premium talent costs.
Answered by Jayesh Sanghrajka
Asked by Gaurav Rateria: Do AI services come at better pricing and margins than core business?
p. 37
“So Gaurav, yes, generally the AI projects come at a better pricing and therefore it reflects in a better margin.”
Jayesh Sanghrajka, page 37 of the filed PDF · View the filing
The European client impact is 0.75% to 1%, and onsite mix reduction contributes another roughly 0.7%.
Answered by Jayesh Sanghrajka
Asked by Sumeet Jain: What is the quantified impact of the European manufacturing client ramp-down and onsite mix shift on FY27 guidance?
p. 39
“Yeah, so Sumeet, if you look at what I said earlier, 1% impact or close 75 bps to 1% impact will come from the European client, which is combination of a deal which did not meet our returns expectation and the ramp-downs in this client through the year as the macro environment is challenging in that sector.”
Jayesh Sanghrajka, page 39 of the filed PDF · View the filing
Rupee benefit is generally offset by cross-currency headwinds, and this quarter the benefit was offset by acquisition-related amortization and other one-off headwinds.
Answered by Jayesh Sanghrajka
Asked by Vibhor Singhal: Has INR depreciation stopped contributing to margin expansion?
p. 42
“If you look at this quarter specifically for us as I called out in the margin walk, there was close to 50 basis points of headwind that that we got because of amortization of one of the acquisition related intangibles.”
Jayesh Sanghrajka, page 42 of the filed PDF · View the filing
Risks flagged
Manufacturing client ramp-down in Europe
p. 30
“There is continued uncertainty on account of tariffs and ongoing Middle East conflict which is resulting into delayed decision making in pockets.”
From the transcript, page 30 of the filed PDF · View the filing
Reduced revenue from a large European manufacturing client
p. 30
“Near term and FY27 growth will be impacted due to low revenue from one large client.”
From the transcript, page 30 of the filed PDF · View the filing
Competitive intensity and AI-driven pricing pressure
p. 34
“So every now and then, we see a competitor doing something which looks outside the range of what we think the models can do today.”
Salil Parekh, page 34 of the filed PDF · View the filing
AI productivity compression on existing services
p. 4
“As we look ahead to the financial year 2027, we see large opportunities in AI services. We also see continued competitive intensity and we see an AI productivity impact, a combination of these things.”
Salil Parekh, page 4 of the filed PDF · View the filing
Cautious client spending with focus on cost optimization
p. 27
“Client spending is guarded, with greater focus on cost optimization engagements as against growth-led transformation programs.”
Jayesh Sanghrajka, page 27 of the filed PDF · View the filing
Uncertainty from tariffs and geopolitical conflict
p. 31
“As we enter FY27, we continue to see a measured and selective approach to enterprise budgets, amid macro and geopolitical uncertainties, higher interest rates, rapid technology shifts and high competitive intensity.”
Salil Parekh, page 31 of the filed PDF · View the filing
Reduction in onsite mix impacting revenue growth
p. 31
“Further reduction in onsite mix by 0.75% to 1%, we expect third-party cost for FY27 to remain at similar levels as FY26.”
Jayesh Sanghrajka, page 31 of the filed PDF · View the filing
Retail sector demand remains muted with pressured budgets
p. 30
“Consumer demand remains muted across the sector and budgets are tightly controlled with discretionary spends under pressure.”
From the transcript, page 30 of the filed PDF · View the filing
Communications sector budgets flat to negative
p. 30
“Budgets are flat to negative which is impacting discretionary spend.”
From the transcript, page 30 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.