The company has also declared an interim dividend of Rs 23 per share and fixed October 27 as a record date for the same.
The IT major has revised lower end of its FY26 revenue guidance upwards to 2-3% as against 1-3% earlier. Meanwhile, margin estimate for the year was retained at 20-22%.
“We have now delivered two consecutive quarters of strong growth, demonstrating our unique market positioning and client relevance,” said Salil Parekh, CEO and MD, Infosys.
For the September quarter, revenues in constant currency terms grew by 2.9% YoY and 2.2% QoQ. Operating margins, on the other hand, saw a decline of 10 bps YoY to 21%.
Gross profit in the second quarter improved 9% YoY to Rs 13,690 crore.The company clocked $3.1 billion in deal wins with 67% net new in Q2. “This reflects our deep understanding of clients’ priorities to deliver value from AI in this environment,” Parekh said.Infosys said it continues to make strategic investments to future proof the business with a tight focus on execution, amidst high uncertainties surrounding the business including AI-related developments.
Segment wise, revenues from all segments clocked growth barring communications and life sciences, which fell 2.5% and 10.5%, respectively. Sales from the manufacturing division went up 6.6% YoY during the quarter and that from financial services increased 5.4%
For the first half of the fiscal, revenues rose 8% YoY to Rs 86,769 crore, while the same in constant currency increased 3.3% YoY. Operating margin for H1 stood at 20.9%, decline of 0.2% YoY.
“Our proactive investments, over the last three years, in embracing an AI-first culture within Infosys has ensured that our people are reskilled to thrive in a human+AI workplace,” Parekh added.
Free cash flow generation at the end of September quarter was strong at $1.1 billion. Employee headcount increased by 8,203 during the July-September period.
Infosys Outlook
Analysts had estimated that the sequential revenue growth of 2% in the second quarter, which was the median consensus estimate, would mean that the ask rate for third and fourth quarter can be flattish to achieve the earlier FY26 guidance of 1-3%.
However, now that the company revised its lower end to 2%, the company would need to clock a bit higher growth in the coming quarters.
“Although narrowing the guidance range could be consensus expectation, our analysis suggests that 1.5% growth in 3QFY26 and a 1.5% decline in 4QFY26 could lift the FY26 upper-end to 3.5% YoY,” said Incred Equities in a pre-earnings note.