Infosys Q2 FY27 Results: Profit ₹7,823 Cr, Guidance Cut

Quick Answer: Infosys reported Q2 FY27 consolidated net profit of ₹7,823 crore, up 6.2% year-on-year, and revenue of ₹49,244 crore, up 10.7%. The quarter itself was steady, but the verdict is in the outlook: Infosys cut FY27 constant-currency revenue guidance to 1–2% from 1.5–3%, while keeping margin guidance at 20–22% and declaring a ₹26 interim dividend.

The verdict in one paragraph

The September quarter was neither a blowout nor a collapse — it was a steady quarter inside a cautious year. Profit rose 6.2% to ₹7,823 crore, revenue rose 10.7% to ₹49,244 crore, and the operating margin held at 21.0%. What changed the story is the outlook: Infosys lowered FY27 constant-currency revenue guidance to 1–2%, from 1.5–3% three months earlier, citing a challenging demand environment. At the same time, it reported $5.2 billion of large-deal wins, 62% net new, and AI revenue at 10.5% of total revenue. The verdict is two-sided: the order book and the AI story look stronger, while the growth outlook looks weaker. The numbers below are the reported results for the quarter ended 30 September 2026, announced on 23 October 2026 — not estimates. Expectations are clearly labelled as such.

Q2 FY27 numbers at a glance

- Net profit: ₹7,823 crore, up 6.2% year-on-year from ₹7,364 crore (Q2 FY26) and up 0.7% quarter-on-quarter from ₹7,769 crore (Q1 FY27). - Revenue from operations: ₹49,244 crore, up 10.7% year-on-year from ₹44,490 crore and up 2.14% quarter-on-quarter from ₹48,211 crore. - Dollar revenue: $5,145 million (about $5.15 billion); constant-currency growth of 1.5% year-on-year and 1.2% quarter-on-quarter. - Operating profit: ₹10,330 crore, up 10.4% year-on-year; operating margin 21.0%, flat against a year ago and just below Q1 FY27's 21.1%. - Earnings per share: ₹19.32, up 8.7% year-on-year. Free cash flow: $928 million, or 113.3% of net profit. One gap matters more than any other number here: revenue grew 10.7% in rupees but only 1.5% in constant currency. The difference is mostly the rupee's depreciation against the dollar — when dollar earnings are translated into rupees, a weaker rupee makes the same dollar revenue look bigger. The rupee figure tells you what landed in the accounts; the constant-currency figure tells you how fast the underlying business actually grew. At 1.5%, underlying growth remains modest.

The guidance cut: what changed and why it matters

Guidance is a company's own forecast for the year ahead. Two things were announced: FY27 constant-currency revenue guidance was cut to 1–2%, from 1.5–3% at the Q1 results; and FY27 operating margin guidance was retained at 20–22%. Why does a shift in a forecast range matter so much? Because guidance is management telling you, in its own words, how the rest of the year looks from inside the company. Cutting both ends of the range signals that management expects the second half of FY27 to be softer than it had hoped three months earlier. The company linked the revision to a challenging demand environment, and chief financial officer Jayesh Sanghrajka described a softer quarter with softer volumes, pricing pressure from competitive intensity, and higher client demands for productivity — all baked into the revised guidance. Context helps. First-half FY27 revenue already grew 1.9% in constant currency at a 21.0% operating margin, so a full-year range of 1–2% implies a second half that is, at best, in line with the first half and, at the lower end, slower. The retained margin guidance matters just as much: it says that even with slower growth, the company expects to protect profitability through cost and operational efficiency measures. The general lesson: a quarter's numbers tell you what happened, but guidance tells you what management expects next — and when the two point in different directions, the forecast usually gets more attention, because markets price the future, not the past.

The ₹26 interim dividend: dates that matter

The board declared an interim dividend of ₹26 per equity share, up 13% from ₹23 a year ago. - Record date: 3 November 2026 — shareholders on the company's records on this date are eligible. - Payout date: 11 November 2026 — the dividend is scheduled to be paid on this date. An interim dividend is paid during the financial year, before final annual results. For income-focused shareholders, it is a tangible cash return even in a slow-growth year. For everyone else, it is a signal: a company that raises its interim dividend while cutting its growth forecast is saying, in effect, that cash generation remains strong even though revenue growth is slowing.

Deals and AI: the stronger half of the story

Large-deal total contract value (TCV) was $5.2 billion, with 62% net new business, including a mega deal worth over $2 billion — well above the roughly $3.6 billion of the previous quarter. Large deals are signed contracts for future work: they do not become revenue immediately, but they build the pipeline later revenue comes from. Nearly two-thirds new business suggests clients are still committing to large transformation programmes even while discretionary spending stays weak. AI revenue reached 10.5% of total revenue and grew 29% quarter-on-quarter. Chief executive officer and managing director Salil Parekh said the strong large deals reinforced the company's position as a trusted partner for large, complex transformation programmes, and that as enterprises move to AI adoption at scale, the strong growth in AI revenues reflected differentiated positioning and client confidence. Read the AI number carefully: 29% growth comes from a base that is still only about a tenth of total revenue, and part of the story is substitution — AI-led productivity can reduce revenue from older, people-intensive work even as it creates new AI work. That tension, AI as both growth engine and deflationary force, is the central question for large Indian IT companies.

Where growth came from — and where it did not

The headline rate hides sharp differences. Life sciences grew fastest, up 32.5% year-on-year in constant currency, followed by energy, utilities, resources and services at 7.3% and communications at 4.1%. Financial services, the largest segment at 28% of revenue, grew 2.1%. But hi-tech fell 17.3% and retail fell 7.7%, while manufacturing declined marginally by 0.7%. By geography, Europe grew 4.6% in constant currency, while North America — the largest market — declined 1.5%. Revenue from India fell 3.5%, while the rest of the world grew 10.9%. Growth is being carried by a few pockets, while the biggest engines are shrinking — a picture of sector-specific softness and cautious US client spending rather than a uniform slowdown.

Expectations versus reality: a fair scorecard

Before the results, the Bloomberg consensus reported by Business Today expected net profit of ₹7,904 crore, net sales of ₹49,108 crore, and an operating margin of 21.2%. These were expectations, not results, and are useful only as a yardstick. Against it, the verdict is mixed: profit came in slightly below consensus, revenue slightly above, and the margin of 21.0% slightly below the expected 21.2%. Brokerage Emkay had also expected a guidance cut ahead of the results — it had pencilled in 1.5–2.5% — so the direction of the revision was anticipated, even though the actual cut to 1–2% was deeper than Emkay's expected range. The cut was a surprise in its depth, not its direction.

People: hiring resumed, attrition eased

Infosys added 4,480 employees on a net basis, taking its workforce to 332,542, from 328,062 in Q1 FY27 and 331,991 a year ago. Voluntary attrition over the last twelve months eased to 12.7%, from 13% in Q1 and 14.3% a year ago, and the share of women employees rose marginally to 39.8%, from 39.6%.

What to watch next

Five questions for the Q3 results: will the $5.2 billion of deals convert into revenue growth, or stay slow? Will the margin stay inside the retained 20–22% band? Will North America, hi-tech and retail stabilise? Will AI revenue keep rising as a share of total revenue? And will full-year growth land nearer the 1% or the 2% end of the revised range? None of these is a prediction — they are the questions Q2 raises, and Q3 will answer them.

Disclaimer: This article is for educational purposes only and is not financial advice. Please consult a SEBI-registered investment adviser for personalized guidance. Investments are subject to market risk. Sources: The Financial Express, Infosys Q2 FY27 results coverage, 23 October 2026; IANS report on Infosys Q2 FY27 results, 23 October 2026; ET Now, 23 October 2026; Business Today, Infosys Q2 results preview, 23 October 2026 (expectations only); NDTV Profit, 23 October 2026.