Infosys Q4FY26 results: Profit up 28%, revenue rises 2%

Why this quarter mattered

Infosys’ March-quarter results landed in a volatile environment for Indian IT services, with the NIFTY IT index down nearly 20% so far this year. Ahead of earnings, investors were focused on whether large deal momentum could offset softer discretionary spending and fewer working days in the quarter. Another key monitorable was the company’s final dividend for FY26 and the tone of management commentary on the demand environment.

The company announced its Q4FY26 results on April 23. While preview notes had pointed to modest sequential growth, the reported numbers came in largely in line with expectations on revenue and ahead on profit.

What the Street expected going in

Analyst expectations clustered around low single-digit sequential revenue growth for Q4FY26. Experts cited a likely sequential rise of 1% to 2%, with revenue projected at ₹45,950 crore to ₹46,550 crore. Bloomberg estimates referenced in the coverage pegged Q4FY26 revenue at ₹46,135 crore, around 1% higher quarter-on-quarter.

Market participants were also watching margin movement, with expectations for a slight improvement aided by rupee depreciation. Separately, total contract value (TCV) was expected around $1 billion to $1.5 billion for the quarter.

Q4FY26 numbers: profit beats estimates

Infosys reported consolidated net profit of ₹8,501 crore for Q4FY26, above the estimate of ₹7,398 crore cited in the coverage. Revenue came in at ₹46,402 crore, compared with an estimate of ₹45,699 crore.

On a sequential basis, the company’s profit rose 27.8% from ₹6,654 crore in Q3FY26. Revenue increased 2% from ₹45,479 crore in Q3FY26. The company reported EBIT of ₹9,743 crore, up from ₹9,479 crore quarter-on-quarter.

Margins and operating metrics

Infosys reported an EBIT margin of 21% for Q4FY26, compared with an estimate of 20.9% referenced alongside the results. Pre-results commentary had indicated that EBIT margin could improve marginally by 8 to 10 basis points to a 21.1% to 21.4% range; the reported figure kept margins around the 21% mark.

In the build-up to the results, commentary also flagged that investors would track new deal wins and the conversion of the deal pipeline. The article context referenced the focus areas as discretionary spending trends, traction in BFSI, strategic transactions, and the margin outlook.

Workforce metrics: attrition and headcount

Infosys reported that its attrition rate rose to 12.6% in Q4FY26, compared with 12.3% in the preceding December quarter. The company’s headcount fell by over 8,000 employees to 3,28,594 in the March quarter, from 3,37,034 in the December quarter.

These two datapoints were among the sharper changes disclosed alongside the financial results and will likely remain on investor radars as the sector balances costs with demand visibility.

Stock move and derivatives setup around results

Ahead of the results, Infosys shares were reported closing 3.4% lower at ₹1,268 on April 22. The stock was also described as down over 21% so far this year amid market volatility.

Options positioning for the April 28 expiry showed a strong call build-up at the 1,300 strike, pointing to a resistance zone around that level. The 1,280 strike saw a significant build-up on both calls and puts, indicating a consolidation area. The at-the-money strike was cited at 1,270, with a combined straddle premium of about ₹56, implying an expected move of roughly ±4.4% into expiry.

Separately, a “share price check” update said Infosys stock settled 2.21% lower at ₹1,240.60 on the NSE ahead of its Q4 results (timestamped April 23, 15:53 IST).

Key figures at a glance

Dividend and guidance: what investors tracked

The board was set to consider the final dividend for FY26 along with approving the financial results. Pre-results coverage repeatedly highlighted that guidance commentary would be a key focus, particularly visibility into FY27.

The broader context also referenced that Infosys had earlier raised its FY26 revenue growth guidance to 3% to 3.5% year-on-year from 2% to 3%, with commentary pointing to expected improvement in BFSI and the EURS vertical.

What brokerages are saying

The coverage included a range of brokerage views and targets on Infosys. IDBI Capital was cited with a “hold” rating and a target price of ₹1,714. Nomura reiterated a “Buy” rating with a target price of ₹1,810, and was also described as ranking Infosys as its top pick in large-cap Indian IT services.

Other targets mentioned included Emkay Global Financial Services at ₹1,750, Motilal Oswal at ₹2,200 (raised from ₹2,150), PL Capital at ₹1,900, and Choice Broking at ₹1,865. Nuvama was cited expecting a Q4 profit of around ₹7,541 crore (a 5% QoQ fall estimate) and revenue of ₹46,300 crore, while retaining a Buy rating with a target of ₹1,900 (revised up from ₹1,800).

Market impact and what to track next

Infosys’ Q4FY26 print landed in a market that has been cautious on IT due to demand uncertainty and lower discretionary spending. The reported profit beat, steady revenue growth, and 21% EBIT margin provided concrete datapoints for investors assessing execution against a weak sector tape.

From here, attention remains on management commentary around discretionary spending, the pace of deal wins, and how the company frames growth visibility beyond FY26. The final dividend announcement for FY26 also remains an immediate, confirmed event tied to the quarter’s board agenda.

Conclusion

Infosys reported Q4FY26 revenue of ₹46,402 crore and net profit of ₹8,501 crore, with EBIT margin at 21%, alongside higher attrition and a lower headcount. With the IT index under pressure this year, investor focus is likely to stay on the final dividend decision and the next set of guidance and demand commentary from management.