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Infosys Q1: Growth Steady, But FY27 Outlook Divided
19 Jul
Summary
- Infosys Q1FY27 results due July 23, projected steady revenue growth.
- Brokerages split on full-year outlook, guidance ranges vary.
- Acquisitions and cost efficiencies expected to support Q1 performance.
Infosys is scheduled to release its June quarter (Q1FY27) financial results on July 23. Analysts anticipate a steady sequential constant currency revenue growth of approximately 2-2.2%. This anticipated growth is largely attributed to contributions from recent acquisitions and the successful implementation of cost-efficiency initiatives.
Revenue estimates for the quarter range between ₹48,086 crore and ₹48,659 crore, reflecting a sequential reported revenue growth of 3.6-4.9%. Net profit is forecast to be between ₹8,049 crore and ₹8,173 crore, a sequential dip but a YoY increase of 16-18.1%.
Guidance for the full fiscal year remains a point of contention among brokerages. Some expect Infosys to revise its FY27 constant currency revenue growth guidance downward to 1.5-3%, while others foresee an upward revision to 2-4%. Operating margins are projected to improve sequentially by 20-40 basis points, reaching 21.2-21.4% due to factors like the absence of wage hikes and cost efficiencies.
Sectorally, the US BFSI vertical is expected to show resilience, while telecom and manufacturing may face continued pressure. Inorganic revenue boosts from acquisitions like Optimum Healthcare IT are anticipated to contribute positively.
