Infosys Reports 6% Net Profit Growth to ₹7,823 Crore in Q2 FY27

Infosys Ltd has reported a 6% increase in net profit for the second quarter of fiscal year 2027, reaching ₹7,823 crore, compared to ₹7,364 crore in the same quarter last year. This growth, announced on October 23, is attributed to rising demand from clients in the energy and utility sectors, as well as increased spending on artificial intelligence services.

The company’s revenue from operations also saw a notable rise of 11%, climbing to ₹49,244 crore in Q2 FY27 from ₹44,490 crore in Q2 FY26. This growth reflects a broader trend in the IT industry, where businesses are increasingly investing in technology solutions to enhance operational efficiencies and drive innovation.

CEO Salil Parekh highlighted the company’s success in securing large deals totaling $5.2 billion, including a significant contract exceeding $2 billion. He noted that AI revenue constituted 10.5% of total revenue, marking a 29% quarter-on-quarter growth. Parekh emphasized the company's role as a trusted partner for enterprises embarking on complex transformation initiatives, particularly in AI strategy development.

CFO Jayesh Sanghrajka reported stable operating margins of 21.0% during a period marked by market volatility, attributing this stability to focused cost management and operational efficiencies. The company also generated a free cash flow of $928 million, representing 113.3% of net profit, which underscores its financial robustness. The board has approved an interim dividend of ₹26 per share, reflecting a 13% increase from the previous year.

Looking ahead, Infosys is set to continue its investment in AI and technology capabilities to maintain its competitive edge. The record date for the dividend is set for November 3, 2026, with payouts scheduled for November 11, 2026. As the company navigates the evolving landscape of IT services, its strategic focus on AI and large-scale transformations positions it well for future growth.