Infosys, the Indian IT giant, announced its financial results for the fourth quarter and full year ended March 31, 2025. The company showcased stable margins, steady revenue growth, strong deal wins, and declared a ₹22 final dividend per equity share — but also issued conservative FY26 growth guidance, which triggered a 4% drop in its American Depositary Receipts (ADR) in post-market trade.
Key Highlights — FY25 & Q4FY25
Revenue Growth:
FY25: 4.2% YoY growth in constant currency (CC).
Q4FY25: 4.8% YoY growth in CC.
Operating Margin:
FY25: 21.1% (up 0.5% YoY).
Q4FY25: 21.0%.
EPS Growth:
FY25: 8.3% YoY increase (₹ terms).
Q4FY25: 10.1% YoY increase (₹ terms).
Large Deal Total Contract Value (TCV):
FY25: $11.6 billion = ₹99,180 crores.
Q4FY25: $2.6 billion = ₹22,230 crores.
Free Cash Flow:
FY25: $4.1 billion = ₹35,100 crores.
Q4FY25: $0.9 billion = ₹7,690 crores.
Dividend Update:
Recommended a ₹22 per equity share final dividend for FY25.
FY26 Revenue Growth Guidance:
Infosys expects 0–3% revenue growth in constant currency for FY26, reflecting a cautious stance amid global client budget tightening.
Market Reaction:
Following the announcement, Infosys ADRs fell by 4% in after-hours trading on Wall Street, signaling investor concerns over the muted growth outlook.
Q4FY25 vs Q4FY24 YoY
Revenue: ₹40,503 crores (up 3.6% YoY).
Cost of Sales: ₹28,247 crores (up 2.6%).
Gross Profit: ₹12,208 crores (up 6.1%).
Operating Profit: ₹8,483 crores (up 8.1%).
Operating Margin: 21.0% (vs 20.1%).
Net Profit: ₹6,966 crores (down 15.2% YoY).
Basic EPS: ₹17.10 vs ₹20.00 in Q4FY24.
Dividend per Share: ₹22.23 (10% increase YoY).
Q4FY25 vs Q3FY25 QoQ
Revenue: ₹40,503 crores (up 1.3% QoQ).
Cost of Sales: ₹28,247 crores (up 1.6%).
Gross Profit: ₹12,208 crores (up 0.9%).
Operating Profit: ₹8,483 crores (down 5.8%).
Net Profit: ₹6,966 crores (flat QoQ).
FY25 vs FY24
Revenue: ₹1,64,726 crores (up 3.9%).
Cost of Sales: ₹1,14,607 crores (up 3.3%).
Gross Profit: ₹50,119 crores (up 5.1%).
Operating Profit: ₹34,802 crores (up 6.3%).
Operating Margin: 21.1% (vs 20.7% FY24).
Net Profit: ₹27,001 crores (down 0.3%).
Basic EPS: ₹65.08 vs ₹65.84.
Infosys delivered stable margins and healthy cash flow in FY25, topped with a strong ₹22 dividend, despite a dip in net profit. However, the muted FY26 guidance of 0–3% revenue growth in constant currency and the global IT spending slowdown have clearly unsettled investors — leading to a 4% fall in Infosys ADRs post the earnings release.
Disclaimer
This article is for informational and educational purposes only, based on publicly available Infosys Ltd. financial statements.Market investments are subject to risk. Please consult a financial advisor before making any investment decisions.
