Infosys's net profit in Q2 surges 13% YoY to ₹7,364cr
What's the story
Infosys has reported a 13.2% year-on-year increase in its consolidated net profit for the July-September quarter (Q2 FY26). The company's net profit stood at ₹7,364 crore during this period. The growth was driven by resilient margins, strong cash generation, and steady deal momentum. Infosys also announced an interim dividend of ₹23 per share, which is a 9.5% increase over last year's dividend payout.
Growth
Revenue growth and operating margin
Infosys's consolidated revenue for Q2 FY26 grew by 8.6% YoY to ₹44,490 crore. In constant currency terms, the growth was 2.9% YoY and 2.2% sequentially. The company's operating margin stood at a stable 21%, similar to the same period last year. This stability in margins despite revenue growth indicates a strong operational performance by Infosys during this quarter.
Future outlook
Retained FY26 revenue growth guidance
Despite the uncertain macro environment, Infosys has maintained its FY26 revenue growth guidance at 2-3% in constant currency. The company also retained its operating margin band at 20-22%. CEO Salil Parekh said that Infosys had delivered two consecutive quarters of strong growth, underscoring its market positioning and relevance to clients. He added that strong deal wins in Q2 reflect their deep understanding of clients' priorities to deliver value from AI.
Financial stability
Free cash flow and share buyback
Infosys's Chief Financial Officer Jayesh Sanghrajka described the company's performance as "robust" with "strong growth, resilient margins, and very high cash generation." He noted that free cash flow for the quarter rose by 38% YoY to ₹9,677 crore. This amount is equal to 131% of the net profit for the same period. The company also announced a share buyback of ₹18,000 crore during this quarter as part of its capital allocation policy.