Infosys Stock Price Gains 3% Despite Net Profit Decline

Despite reporting a 12 percent year-on-year (YoY) decline in consolidated net profit for the March quarter, Infosys's share price experienced a notable increase. On Monday, the IT giant's shares jumped 3 per cent to reach an intraday high of ₹1,462.20 on the BSE. This occurred even as the company's net profit for the quarter stood at ₹7,033 crore, compared to ₹7,969 crore in the same period last year. Over the past five trading sessions, Infosys's share price has gained over 2.22 percent, although it has descended by 21.56 per cent in the last six months. At noon, the company’s share price was trading at ₹1,454.30.

Key Financial Highlights for Q4FY25 

Infosys reported a revenue increase of 8% year-on-year, reaching ₹40,925 crore compared to ₹37,923 crore in the same quarter last year. However, in constant currency (CC) terms, the revenue growth was 4.8% year-on-year, and the topline saw a decline of 3.5% quarter-on-quarter (QoQ) in CC terms. The company also reported an operating margin of 21% as compared to 20.7% in FY24. Despite an 11.8% YoY decline in Earnings Per Share (EPS), Infosys's free cash flow rose by 10% YoY to ₹ 7,737 crore.

Management Commentary and Future Outlook 

CEO and MD Salil Parekh commented that the company's performance for the year was "robust" in terms of revenues, expansion in operating margins, and free cash generation. He highlighted Infosys's strengths in AI, cloud, and digital technologies, along with cost efficiency and automation, positioning them well for client needs. Backed by strong performance in AI, cloud, and efficiency projects, Infosys proposed a final dividend of ₹ 22 and has guided for FY26 revenue growth of 0–3% in constant currency. According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, Infosys offers innovation-driven potential through its AI and R&D initiatives but might experience slower momentum soon.

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