📝 Introduction
Infosys, one of India’s leading IT services companies, announced its financial results for the fourth quarter of FY25, ending March 31, 2025. While the company reported robust revenue growth year-on-year, it also saw a notable decline in net profit. The management declared a ₹22 final dividend and provided a muted revenue guidance of 0–3% for FY26, signaling a cautious outlook amid macro uncertainties.
📌 Financial Highlights
| Key Metrics | Q4 FY25 (₹ Cr) | QoQ Growth | YoY Growth |
|---|---|---|---|
| Revenue from Operations | 40,925 | -2.01% | 7.92% |
| Operating Profit (EBIT) | 8,574 | -6.32% | -2.39% |
| Profit Before Tax (PBT) | 9,663 | -0.07% | -5.64% |
| Net Profit | 7,033 | 3.33% | -11.75% |
| EPS (₹) | 16.93 | 3.29% | -11.82% |
| Operating Margin (%) | 24% | Flat | Flat |
💰 Dividend Announcement
Infosys declared a final dividend of ₹22 per equity share for FY25.
- Record Date: May 30, 2025
- Payment Date: June 30, 2025
📈 Key Financials Metrics
Quarterly Comparison (QoQ)
| Metric | Q4 FY25 | Q3 FY25 | QoQ Change |
|---|---|---|---|
| Revenue (₹ Cr) | 40,925 | 41,764 | -2.01% |
| Expenses (₹ Cr) | 31,051 | 31,649 | -1.89% |
| EBIT (₹ Cr) | 8,874 | 10,115 | -12.28% |
| PBT (₹ Cr) | 9,663 | 9,670 | -0.07% |
| Net Profit (₹ Cr) | 7,033 | 6,822 | 3 |
Yearly Comparison (YoY)
| Metric | Q4 FY25 | Q4 FY24 | YoY Change |
|---|---|---|---|
| Revenue (₹ Cr) | 40,925 | 37,923 | 7.92% |
| Expenses (₹ Cr) | 31,051 | 29,139 | 6.56% |
| EBIT (₹ Cr) | 8,874 | 8,784 | 1.02% |
| PBT (₹ Cr) | 9,663 | 10,240 | -5.64% |
| Net Profit (₹ Cr) | 7,033 | 7,969 | -11.75% |
📊 Key Financial Ratios
| Ratio | Q4 FY25 | Q3 FY25 | Q4 FY24 | QoQ Trend | YoY Trend |
|---|---|---|---|---|---|
| OPM (%) | 24% | 24% | 23% | Stable | +100 bps |
| Net Profit Margin (%) | 17.17% | 16.33% | 21.01% | ↑ | ↓ |
| EPS (₹) | 16.93 | 16.39 | 19.2 | ↑ | ↓ |
🤝 Peer Comparison
| Company | CMP (₹) | Market Cap (₹ Cr) | P/E | P/B | ROE (%) | ROCE (%) | 52W High (₹) | 52W Low (₹) |
|---|---|---|---|---|---|---|---|---|
| TCS | 3,526.90 | 12,76,063 | 26.33 | 13.49 | 52.38 | 64.63 | 4,592.25 | 3,056.05 |
| Infosys | 1,575.40 | 6,54,405 | 24.66 | 6.84 | 28.83 | 37.5 | 2,006.80 | 1,307.00 |
| HCL Tech | 1,656.30 | 4,49,451 | 25.8 | 6.42 | 25.23 | 31.88 | 2,012.20 | 1,235.00 |
| Wipro | 252.2 | 2,64,220 | 20.15 | 3.2 | 16.74 | 19.67 | 324.6 | 208.4 |
| Tech Mahindra | 1,591.50 | 1,55,814 | 36.67 | 5.67 | 15.74 | 20.08 | 1,807.70 | 1,193.65 |
| LTIMindtree | 5,056.90 | 1,49,861 | 32.61 | 6.63 | 21.53 | 27.63 | 6,767.95 | 3,802.00 |
| Persistent Systems | 5,742.90 | 89,504 | 63.99 | 14.02 | 24.83 | 31.39 | 6,788.90 | 3,232.05 |
🏗️ Strategic Developments
- 📌 Acquisition: Infosys announced the acquisition of MRE Consulting Ltd, a UK-based energy tech consulting firm. This is expected to enhance Infosys’ expertise in energy trading and risk management.
- 🔍 CEO Commentary: CEO Salil Parekh emphasized Infosys’ strength in AI, cloud, automation, and cost efficiency, highlighting resilience and client-centric execution.
✅ Positives & ❌ Negatives
✅ Positives This Quarter
- Revenue grew by nearly 8% YoY, showing strong demand.
- Net Profit increased sequentially by over 3%.
- Maintained strong operating margins at 24%.
- Announced a strategic acquisition to enhance consulting strength.
- Declared ₹22/share dividend enhancing shareholder value.
❌ Negatives / Challenges This Quarter
- Net profit down 11.75% YoY, indicating pressure on bottom line.
- Missed analyst expectations on revenue, net profit & EBIT.
- FY25 revenue growth fell short of earlier guidance.
- FY26 guidance (0–3%) indicates a subdued outlook.
- Sequential decline in USD revenue by 4.2%, worse than expectations.
📉 Market Reaction & Street View
- 📉 Stock Reaction: Infosys stock showed muted movement post-result announcement, reflecting disappointment over weak guidance and margin pressures.
- 🗣️ Brokerage Commentary:
- CNBC-TV18: Analysts expected ₹7,278 Cr net profit vs. ₹7,033 Cr actual; EBIT margin slightly beat expectations (21% vs. 20.7% expected).
- Motilal Oswal, ICICI Securities (as reported): Likely to revise target prices downward citing subdued FY26 growth guidance.
🔮 Final Outlook
Infosys delivered a resilient Q4 performance with moderate revenue growth and maintained margins despite macroeconomic uncertainties. However, the decline in profit and subdued FY26 revenue guidance signal cautious near-term expectations. The acquisition of MRE Consulting and leadership focus on digital and AI transformation keep long-term prospects intact, although near-term growth may remain under pressure.
🔗 External Links
For detailed financials and official updates, visit: Official Company Site
⚠️ Disclaimer
This summary is based on publicly available information from official filings, press releases, and financial news sources. It is provided for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Readers are advised to conduct their own research or consult with a qualified financial advisor before making any investment decisions.