Infosys Q3 profit dips 2.2% to ₹6,654cr, misses estimates
What's the story
Infosys has reported a net profit of ₹6,654 crore for the third quarter of FY26—a marginal 2.2% decline from last year and lower than analyst expectations. The company's revenue grew by 8.9% to ₹45,479 crore during the period under review. However, when adjusted for currency fluctuations, the revenue growth was 1.7% year-on-year and 0.6% sequentially. The company's net profit dropped ₹1,289 crore on account of new labor codes.
Margin impact
Operating margin declines amid rising costs
Infosys's operating margin for the quarter under review declined to 18.4%. The fall is largely attributed to rising costs and the impact of labor code-related provisions. Despite the challenges, Infosys secured $4.8 billion in large deals during the quarter. Over half of these were new contracts, providing a glimmer of hope for future revenue growth. The company has also raised its revenue growth forecast for FY26 to 3-3.5% and maintained its margin guidance at 20-22%.
Market response
Infosys shares rise ahead of results announcement
Ahead of the results announcement, Infosys shares rose by 0.6% to close at ₹1,608.9 on the National Stock Exchange (NSE). However, it is worth noting that the stock has lost over 17% over the past year, significantly underperforming against the Nifty 50 index which has gained about 11% during this period.