Infosys, one of India’s top IT giants, reported its Q4 results for FY25, and the numbers are telling an interesting story. While the company saw an 8% growth in its quarterly revenue, its net profit took a 12% hit, falling to ₹7,033 crore. This decline was slightly below market expectations but still raised some eyebrows.
In this blog, we’ll break down Infosys’ performance, what the market is making of it, and what this means for its future stock price.
Infosys revenue and profit highlights
The headline numbers show that Infosys’ revenue for Q4 FY25 stood at ₹40,925 crore, an 8% increase from the same period last year. This is a solid result, but the company’s net profit of ₹7,033 crore, representing a 12% decline year-on-year, took some attention away from the revenue growth.
A significant part of this drop was attributed to the overall weakness in the global IT market, with tech spending under pressure globally. However, the company is confident that its focus on AI, cloud, and automation will help it navigate through these challenging times.
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Here’s a quick breakdown of the key financials:
| Metric | Value | YoY Change |
| Net Profit | ₹7,033 crore | -12% |
| Revenue | ₹40,925 crore | +8% |
| Operating Margin | 21% | +0.9% |
| Final Dividend | ₹22 per share | – |
Sequential performance and quarterly insights
Looking at the quarter-on-quarter (QoQ) performance, Infosys’ net profit showed a small increase of 3.3%, reaching ₹7,030 crore. However, revenue dipped slightly by 2%, from ₹41,764 crore in Q3FY25 to ₹40,928 crore in Q4FY25. This points to a mixed performance, with slight pressure on revenue, but a relatively stable profit figure despite some headwinds.
The quarter was also affected by fewer working days due to seasonal slowdowns and some furloughs. But despite these challenges, Infosys managed to hold its ground, showcasing resilience in an uncertain environment.
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Insights from the ceo’s commentary
Salil Parekh, the CEO of Infosys, highlighted that the company continues to focus on high-growth areas like AI, cloud, and automation to meet evolving customer needs. This focus is expected to help Infosys stay ahead of its competitors and remain competitive in a volatile market.
“Despite the current challenges, we’ve built a resilient organisation with a sharp focus on client-centricity. Our performance for FY25 has been robust in terms of revenues, operating margins, and free cash flow generation,” said Parekh.
Dividend and FY26 outlook
Infosys has announced a final dividend of ₹22 per share for FY25, reaffirming its commitment to shareholder returns despite the ongoing pressure from global market conditions. The record date for the dividend is set for May 30, 2025, with payments expected by June 30, 2025.
For FY26, Infosys has set a revenue growth guidance of 0% to 3% in constant currency terms, reflecting a cautious outlook due to the uncertain macroeconomic environment. The company has also set an operating margin target of 20% to 22%, signalling a focus on maintaining efficiency despite potential headwinds.
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Looking ahead: the stock performance
Infosys shares have seen a rough ride so far in 2025. The stock has dropped by 25%, largely due to broader volatility in IT stocks, particularly after the imposition of US tariffs on Indian tech companies, followed by a temporary 90-day pause. The stock’s decline has led to questions about its future potential, especially given the weak guidance for FY26.
At the close of April 17, 2025, Infosys shares stood at ₹1,428.10, up by 1.07% for the day. But when we zoom out, the stock has fallen 25% in 2025, and the company’s market cap has dropped to ₹5.79 lakh crore. This decline has put a dent in investor confidence, but the potential for a recovery hinges on how well Infosys can leverage its investments in AI, cloud, and digital services to weather the storms ahead.
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Conclusion:
Infosys’ Q4 FY25 results show a mixed picture: solid revenue growth, but a significant dip in net profit. With weak market conditions and cautious guidance for FY26, investors will need to carefully evaluate the company’s strategy and resilience before making a decision.
Despite the decline, Infosys’ strong focus on future-proof areas like AI and automation, along with its strategic acquisitions, might make it an attractive option for long-term investors who can withstand short-term volatility.
Will Infosys bounce back, or is this the beginning of a prolonged slump? Only time will tell, but the stock’s performance over the next few quarters will be crucial in determining its future direction.
