Infosys Posts Strong Revenue Growth but Profit Declines Sequentially
The IT giant reported a 14% YoY revenue increase, but quarterly profit fell 8.6% as net profit margin contracted.
Infosys delivered robust year-on-year revenue growth in Q1 FY27, though profit declined from the previous quarter, reflecting margin pressure.
Infosys kicked off fiscal 2027 with solid top-line momentum, though profitability faced a sequential squeeze. The company's revenue grew healthily year-on-year, but profit took a step back from the previous quarter's high, highlighting a margin challenge in the June period.
The quarter's performance was a mixed bag. Revenue for Q1 FY27 came in at ₹48,211 crore, a 14% increase from the same quarter last year and a 3.9% sequential rise. However, profit after tax (PAT) of ₹7,775 crore was up 12.3% year-on-year but fell 8.6% compared to the March 2026 quarter. This divergence pulled the net profit margin down to 16.1%, a notable drop from 18.3% in Q4 FY26 and slightly below the 16.4% recorded in Q1 FY26.
The recent trajectory shows a volatile profit pattern against a steadily climbing revenue base.
Revenue (₹ crore)
Profit (₹ crore)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ crore) | 48,211YoY +14% | 46,402 | 42,279 |
| Profit (₹ crore) | 7,775YoY +12% | 8,509 | 6,924 |
| Net Profit Margin | 16.1%YoY -1.8% | 18.3% | 16.4% |
Key Points
- The trailing twelve-month (TTM) revenue stands at ₹1,84,582 crore with a TTM net profit margin of 16.4%.
- The company maintains a robust balance sheet with zero debt and a high return on equity of 31.68%.
- Over the past year, the stock has declined 19.2%, and it currently trades at a slight discount to the IT industry average P/E.
Overall, while the long-term earnings power remains intact, the immediate focus shifts to whether Infosys can stabilize its profitability in the coming quarters.
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· INFY
(BSE)
ISIN: INE009A01021
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