Infosys Q2 FY26 profit rises 13% to ₹7,364 cr, revenue grows 9%; announces ₹23 interim dividend

IT services major Infosys Ltd has reported a 13% year-on-year (YoY) increase in its net profit at ₹7,364 crore for the July-October quarter of FY2025-26, largely in-line to better than what the street anticipated. The IT behemoth's revenue surged 9% to ₹44,490 crore for the said quarter. The Infosys board announced an interim dividend of ₹23 per share. The company has fixed October 27 as a record date.

In constant currency, Infosys delivered $5,076 million in Q2 revenues, year-on-year growth of 2.9% and sequential growth of 2.2% in constant currency. Its operating margin for Q2 stood at 21%, while free cash flow generation was recorded at $1.1 billion, 131.1% of net profit. Total commercial value (TCV) of large deal wins was $3.1 billion, with net new of 67%. Infosys says its employee headcount increased by 8,203 in Q2 Fy26.

With this, H1 revenues grew at 3.3% year over year in constant currency. Operating margin for H1 was at 20.9%.

Infosys has also increased the lower end of its guidance from 1% to 2%, while FY26 revenue guidance stands at 2%-3% in constant currency and operating margin guidance retained at 20%-22%. The company has set up a step down wholly owned subsidiary in Egypt, the exchange filing said.

“We have now delivered two consecutive quarters of strong growth, demonstrating our unique market positioning and client relevance. Strong deal wins, with 67% net new in Q2, reflect our deep understanding of clients’ priorities to deliver value from AI in this environment," said Salil Parekh, CEO and MD, Infosys.

Parekh said the company's proactive investments, over the last three years, in embracing an AI-first culture within Infosys has ensured that our people are reskilled to thrive in a human+AI workplace. "Infosys Topaz’s differentiated value proposition is unlocking value at scale in every transformation program,” Parekh said.

Infosys CFO Jayesh Sanghrajka said termed the company's Q2 performance as "robust" and "all-round", clocking in resilient margins, very high cash generation and 13.1% earning per share (EPS) growth year on year in rupee terms. "We continue to make strategic investments to futureproof the business with a tight focus on execution, amidst high uncertainty.” He said in line with Infosys' capital allocation policy, it has announced a share buyback for ₹18,000 crores during the quarter, and an interim dividend of ₹23 per share, an increase of 9.5% over last fiscal.

Shares of Infosys closed flat (-0.08%) at ₹1,472.75 on the BSE today.

Key highlights:

For Q2 FY26:

Revenues in CC terms grew by 2.9% YoY and 2.2% QoQ

Reported revenues at ₹44,490 crore, growth of 8.6% YoY

Operating margin at 21.0%, decline of 0.1% YoY and growth of 0.2% QoQ

Basic EPS at ₹17.76, growth of 13.1% YoY

FCF at ₹9,677 crore, growth of 38.0% YoY; FCF conversion at 131.2% of net profit

For H1 FY26:

Revenues in CC terms grew by 3.3% YoY

Reported revenues at ₹86,769 crore, growth of 8.1% YoY

Operating margin at 20.9%, decline of 0.2% YoY

Basic EPS at ₹34.47, growth of 10.9% YoY

FCF at ₹17,210 crore, growth of 6.5% YoY;

FCF conversion at 120.4% of net profit