Bengaluru, April 17, 2025 — Infosys Limited (NSE: INFY), India’s second-largest IT services company, unveiled its fiscal 2025 results today, showcasing resilient growth amid global macroeconomic challenges. The board announced a 4.2% year-on-year revenue increase in constant currency terms, an expanded operating margin of 21.1%, and a record-breaking final dividend of ₹22 per share. The results were bolstered by strategic acquisitions, leadership incentives, and a focus on emerging technologies like AI and cybersecurity.
Financial Highlights: Steady Growth Amid Market Volatility
Infosys reported $19.3 billion in FY25 revenues, driven by strong demand for digital transformation services. Key metrics include:
- Q4 Revenue: $4.7 billion (4.8% YoY growth in CC terms).
- Operating Margin: Expanded by 0.5% to 21.1%, attributed to cost optimization under “Project Maximus.”
- Free Cash Flow: Reached a historic high of $4.1 billion, up 41.8% YoY.
- Large Deals: Total contract value (TCV) hit $11.6 billion, with 56% classified as “net new.”
The board recommended a final dividend of ₹22 per share, marking a 13.2% increase over FY24. Combined with the interim dividend of ₹21, the total payout for FY25 stands at ₹43 per share.
Strategic Moves: Acquisitions and Global Expansion
Infosys doubled down on its industry-specific solutions with two major acquisitions:
- MRE Consulting (USA): A $36 million deal to bolster energy and commodity trading expertise.
- The Missing Link (Australia): A $63 million acquisition to strengthen cybersecurity and cloud capabilities.
Additionally, Mitsubishi Heavy Industries acquired a 2% stake in Infosys’ Japan-based joint venture HiPUS, enhancing procurement and digital transformation services in the region.
CEO Salil Parekh emphasized, “Our acquisitions and partnerships reflect our commitment to delivering cutting-edge solutions in AI, cloud, and cybersecurity, which are critical for our clients’ sustainable growth.”
Leadership Incentives: Stock Grants for CEO and Employees
The board approved significant stock-based incentives for CEO Salil Parekh, including:
- ₹34.75 crore in performance-linked Restricted Stock Units (RSUs).
- ESG and TSR-linked grants worth ₹2 crore and ₹5 crore, respectively.
Over 5,000 RSUs were also granted to employees under the 2015 Stock Incentive Plan, aligning workforce goals with long-term company performance.
FY26 Guidance: Cautious Optimism
For FY26, Infosys projected:
- Revenue Growth: 0%–3% in constant currency.
- Operating Margin: 20%–22%, reflecting investments in AI and talent retention.
Analysts remain watchful of macroeconomic headwinds but applaud Infosys’ disciplined capital allocation. “Their focus on high-margin digital services and prudent acquisitions positions them well for medium-term growth.”
Market Reaction and Future Outlook
Following the announcement, Infosys shares traded marginally higher on the NSE, reflecting investor confidence in its strategic roadmap. The company’s emphasis on AI-driven platforms like Infosys Topaz and Cobalt Cloud underscores its ambition to lead in next-gen tech solutions.
As Parekh concluded, “Our agility, coupled with deep client relationships, ensures we’re poised to navigate uncertainties and capitalize on emerging opportunities.”
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