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Infosys Ltd

| Audited Financial Results for Quarter & Year Ended March 31, 2026

Report Source

⬤23rd Apr 26

Summary : Infosys delivered resilient FY26 performance driven by strong large deal wins and healthy cash flow, with positive FY27 guidance and strategic AI investments.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Cost of sales FY26: $14,079 million (₹124,735 crore).
  2. Consolidated Selling and marketing expenses FY26: $1,025 million (₹9,077 crore).
  3. Consolidated Administrative expenses FY26: $969 million (₹8,584 crore).
  4. Consolidated Employee benefit expenses FY26: ₹95,094 crore.
  5. Days Sales Outstanding (DSO): 67 days (Mar 31, 2026).
  6. Consolidated Trade receivables: ₹35,234 crore ($3,715 million).
  7. Standalone Trade receivables: ₹30,337 crore.
  8. Consolidated Revenue FY26: $20,158 million (₹178,650 crore).
  9. Consolidated Revenue Q4 FY26: $5,040 million (₹46,402 crore).
  10. YoY CC Growth FY26: 3.1%.
  11. YoY CC Growth Q4 FY26: 4.1%.
  12. Free Cash Flow FY26: $3.7 Billion (₹33,097 crore).
  13. Net cash generated by operating activities FY26: ₹33,986 crore ($4,039 million).
  14. Net cash generated from investing activities FY26: ₹1,946 crore ($ -361 million).
  15. Net cash used in financing activities FY26: ₹-39,786 crore ($ -4,485 million).
  16. Claims against company not acknowledged as debts: ₹3,117 crore.
  17. Income tax claims not acknowledged as debts: ₹1,964 crore.
  18. McCamish Cybersecurity incident settlement costs.
  19. DOJ investigation regarding H-1B visa employees.
  20. Total Assets (Mar 31, 2026): ₹155,967 crore ($16,446 million).
  21. Total Equity (Mar 31, 2026): ₹93,297 crore ($9,840 million).
  22. Total Liabilities (Mar 31, 2026): ₹62,670 crore ($6,606 million).
  23. Cash and cash equivalents (Mar 31, 2026): ₹22,201 crore ($2,341 million).
  24. Detailed list of subsidiaries provided.
  25. Compensation to key management personnel: ₹144 crore (FY26).
  26. Transactions with subsidiaries disclosed.
  27. Both standalone and consolidated financial results approved.
  28. Auditors provided unmodified opinions on both statements.

Corporate Overview

  1. North America: 55.7%
  2. Europe: 32.6%
  3. Rest of the world: 9.1%
  4. India: 2.6%
  5. Economic uncertainties and geo-political situations.
  6. Increased competition for talent and rising wages.
  7. Evolving regulatory landscape, including immigration changes.
  8. Cybersecurity matters and pending litigation outcomes.
  9. No single client accounts for over 10% of revenue.
  10. Exposure to credit risk diversified across customers.
  11. Reliance on AI-first value proposition and ecosystem partnerships.
  12. Global leader in AI-first business consulting and technology services.
  13. Enables organizations to unlock AI value at scale.
  14. Navigates clients through digital transformation powered by cloud and AI.
  15. Accelerates business transformation through AI-first value framework.
  16. Resilient performance with strong large deal wins.
  17. Confident about AI value proposition and market share gains.
  18. Focused on margins, cash generation, and strategic investments.
  19. Active clients: 1,965
  20. New clients added: 111
  21. 1 Million dollar+ clients: 1,018
  22. Top 5 clients contribution: 12.6%
  23. Days Sales Outstanding: 67 days
  24. Financial services: 28.0%
  25. Manufacturing: 15.9%
  26. Energy, Utilities, Resources & Services: 13.2%
  27. Retail: 12.8%
  28. Communication: 12.4%
  29. Hi-Tech: 7.7%
  30. Life Sciences: 7.3%
  31. Others: 2.7%
  32. Total employees: 328,594
  33. S/W professionals: 310,887
  34. Voluntary Attrition % (LTM - IT Services): 12.6%
  35. Percentage of Women Employees: 39.5%
  36. Utilization (Excluding trainees): 83.0%
  37. Approved incorporation of a step down wholly owned subsidiary in Japan.
  38. Acquired Stratus Global LLC, an insurance technology partner.
  39. Acquired Optimum Achieve Holdings Inc., a healthcare firm.
  40. Estimated capital commitments for projects: ₹1,341 crore.

Risk Factors

  1. Economic and geopolitical uncertainties.
  2. Talent competition and wage increases.
  3. Evolving regulatory landscape.
  4. Cybersecurity incident impact.

Key Drivers

  1. Strong large deal wins.
  2. Healthy free cash flow.
  3. Strategic AI services traction.
  4. Acquisitions strengthen capabilities.

Auditor’s Report

  1. Unmodified audit opinion on consolidated financial statements.
  2. Unmodified audit opinion on standalone financial statements.
  3. Revenue recognition involves significant judgment.
  4. Fixed price maintenance revenue recognition methods.
  5. Estimation of total efforts/costs for fixed-price contracts.

Board Commentary

  1. Appointment of Diane Enberg Jurgens as Independent Director.
  2. Re-appointment of Helene Auriol Potier as Independent Director.
  3. Recommended final dividend of ₹25/- per share for FY26.
  4. Final dividend to be paid on June 25, 2026.
  5. Policy to return 85% of free cash flow over 5 years.
  6. Includes semi-annual dividends and buybacks.
  7. Auditor appointment subject to regulatory requirements.
  8. McCamish cybersecurity incident may incur costs.
  9. DOJ investigation outcome is unpredictable.
  10. Legal actions not expected to have material adverse effect.
  11. Mandatory auditor rotation requirement in India.
  12. Change in US SEC certifying accountant.
  13. Impact of new Labour Codes provisions.
  14. DOJ investigation regarding H-1B visa employees.
  15. Estimated capital contracts remaining: ₹1,341 crore.
  16. Approved incorporation of Japan subsidiary.
  17. Acquisition of Stratus Global LLC completed.
  18. Acquisition of Optimum Achieve Holdings Inc. planned.

Corporate Governance

  1. Code of Conduct for Prohibition of Insider Trading.
  2. Environmental, Social and Governance Charter.
  3. Code of Conduct and Ethics.
  4. Anti-Bribery and Anti-Corruption Policy.
  5. Appointment of new Independent Director.
  6. Re-appointment of Independent Director.
  7. Nomination and Remuneration Committee recommendations.
  8. Audit Committee oversight.

Management Discussion & Analysis

Future Strategy

  1. FY27 revenue growth guidance: 1.5%-3.5%.
  2. FY27 operating margin guidance: 20%-22%.
  3. Deepen client trust and market share.
  4. Strengthen core services and accelerate innovation.

Industry Overview

  1. AI fundamentally transforming the global insurance industry.
  2. P&C segment leading AI adoption for efficiency.

Macroeconomic Outlook

  1. Navigating an evolving macro environment.
  2. Acknowledging economic uncertainties and geo-political situations.

Operational Focus Areas

  1. Focus on margins and cash generation.
  2. Invest in talent, AI, and sales & marketing.
  3. Effectively implement hybrid working model.
  4. Reskill employees for future readiness.

Performance Drivers

  1. Resilient 3.1% FY26 constant currency growth.
  2. Strong $14.9 billion large deal wins.
  3. Healthy $3.7 billion Free Cash Flow.
  4. Robust enterprise AI value proposition.

Risk Control Measures

  1. Disciplined execution and financial resilience.
  2. Strategic investments in talent and AI.
  3. Robust AI value proposition and partnerships.
  4. Management expects no material adverse effect from legal actions.

Critical Risks

  1. Execution of business strategy uncertainties.
  2. Increased competition for talent.
  3. Economic and geopolitical situations.
  4. Technological disruptions and AI innovations.