Infosys started FY25 on a resilient footing with robust YoY growth in both profits and revenues, though margins saw a marginal decline. The standout feature is the upward revision in revenue outlook, signalling growing confidence in digital and AI-led transformation demand.
CEO Salil Parekh said the results reflect Infosys’s enterprise AI strength and strategic client consolidation, helping drive deal wins. CFO Jayesh Sanghrajka added that cash conversion and hedge strategies supported margin resilience.
📊 Key Financial Takeaways
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Net Profit: ₹6,921 cr (+9% YoY, –1.6% QoQ)
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Revenue: ₹42,279 cr (+7.5–8% YoY) Read more on mint
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Margins: Stable at ~20.8–20.9%, holding steady — a sign of operational resilience
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Guidance: FY26 revenue outlook lifted to 1–3% CC growth (from flat to 3%), reference
🎯 Market Reaction & Technical View
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ADRs jumped ~3% on strong earnings beat.
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India-listed shares ticked up modestly, aided by upbeat global cues
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Stock remains in a broad range of ₹1,530–1,650 with resistance at ₹1,600–1,650; technical indicators suggest a cautious upswing
🔍 Investor Guidance
✅ Hold if You Own INFY
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Strong results and upgraded guidance justify holding current positions.
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Margins remain robust, and cash-flow conversion is solid.
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Robust deal wins (TCV ₹3.8 bn) indicate durable demand
🔼 Consider Buying on Dips
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Short-term corrections (₹1,530–1,550) could offer buying opportunities.
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If markets remain friendly and deal wins continue, a move toward ₹1,700 seems plausible.
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Analyst opinions are mixed: Nomura calls a Buy with target ₹1,880; Motilal Oswal is Neutral at ₹1,750
🛑 Exit If…
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You’re risk-averse to macro uncertainties—rising wages and weak US IT demand might weigh on margins.
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Forecast prices near peak of technical resistance and valuation is mid-20s P/E (~24), with global headwinds ahead
🧩 Summary Table
| Investor Type | Recommended Action | Rationale |
|---|---|---|
| Long-Term | ✅ Hold | Strong fundamentals, stable margins, future growth well-supported |
| Value Hunters | ✅ Accumulate on dips | Potential discount near ₹1,530, clear upside if quarterly strength holds |
| Short-Term | ⚠️ Be Cautious / Lighten Up | Resistance near ₹1,650–1,700; technicals suggest possible consolidation |
📝 Final Takeaway
Infosys delivered a reassuring Q1 — with profits up, revenue steady, margins intact, and conservative guidance upgraded. Shares are stable and trading within the expected technical range. Investors should use dips to add gradually, but remain mindful of global IT risks. Stay long if you’re invested, and consider entry points if adding anew—just watch the ₹1,530–1,550 support zone closely.
