Infosys reported strong Q2 FY27 financial results, with revenues growing 1.5% YoY in constant currency to $5,145 million. The company declared an interim dividend of ₹26 per share, a 13% increase from the previous year. Operating margin remained stable at 21.0%, and EPS saw an 8.7% YoY growth in rupee terms. The company also secured large deals totaling $5.2 billion in TCV.
| For the quarter ended September 30, 2026 | For the six months ended September 30, 2026 | |
| Revenues in CC terms | grew by 1.5% YoY and 1.2% QoQ | grew by 1.9% YoY |
| Reported revenues | at ₹49,244 crore, growth of 10.7% YoY | at ₹97,454 crore, growth of 12.3% YoY |
| Operating margin | was stable at 21.0% | was stable at 21.0% |
| Basic EPS | at ₹19.32, growth of 8.7% YoY | at ₹38.51, growth of 11.7% YoY |
| FCF | at ₹8,898 crore, decline of 8.1% YoY; FCF conversion at 113.5% of net profit | at ₹17,949 crore, growth of 4.3% YoY; FCF conversion at 115.0% of net profit |
Key Financial Highlights
Infosys announced its financial results for the second quarter and first half of fiscal year 2027, ending September 30, 2026. The company demonstrated robust performance with 1.5% year-on-year revenue growth in constant currency for Q2, reaching $5,145 million. Sequentially, revenue grew by 1.2%. Operating margins were stable at 21.0%.
In terms of earnings per share (EPS), there was an 8.7% year-on-year growth in rupee terms for the quarter. Free cash flow (FCF) for the quarter stood at $928 million, representing 113.3% of net profit, highlighting the company’s financial strength. For the first half of the fiscal year, revenues grew by 1.9% in constant currency, with stable operating margins of 21.0%. Basic EPS saw an 11.7% year-on-year growth.
Dividend Declaration
Further strengthening its commitment to shareholder returns, the Board of Directors announced an interim dividend of ₹26 per share. This represents a 13% increase compared to the dividend declared in the previous year, underscoring the company’s consistent financial performance and positive outlook.
Large Deal Wins and AI Strategy
The company reported strong performance in securing large deals, with a total contract value (TCV) of $5.2 billion for Q2, of which 62% was net new. This indicates a solid foundation for future growth. The company emphasized its differentiated AI strategy, which propelled a 29% sequential growth in AI revenues.
Future Guidance
Looking ahead to FY 27, Infosys has revised its revenue growth guidance to 1%-2% in constant currency, while retaining its operating margin guidance at 20%-22%.
Source: BSE
