At a Glance
Infosys is still India’s #2 IT services giant, raking in ₹1.6 lakh crore in FY25. But profits barely moved, growth slowed to a crawl, and the stock… well, it’s up just 3% in 3 years. With a juicy 28.8% ROE and 2.7% dividend, the business is rock solid — but is ittoo safe to scale?, 3% CAGR in 3 Years — Is Nandan Nilekani’s Ship Losing Steam in the AI Era?
💻 1. The OG Digital Consultant
Infosys sells:
- 💼 IT consulting
- 🛠️ Application development
- 🧠 AI/ML and data analytics
- ☁️ Cloud migrations
- 🔐 Cybersecurity
- 📦 Legacy system modernisation
Basically: if it can be billed by the hour and sold to a Fortune 500 CTO, they’ll do it.
And yet… while the world has gone
GenAI, the Bangalore boys are stuck upgrading Java.
📊 2. The FY25 Results — Flat Is the New Sexy?
| Metric | FY24 | FY25 | Growth |
|---|---|---|---|
| Revenue | ₹1,53,670 Cr | ₹1,62,990 Cr | +6% |
| Net Profit | ₹26,248 Cr | ₹26,750 Cr | +2% |
| OPM | 24% | 24% | Unchanged |
| EPS | ₹63.2 | ₹64.3 | 😴 |
| ROE | 28.8% | 29% | ✅ |
| Dividend Payout | 73% | 67% | 💸 |
So we’re getting stable cash cows… but not much hay.
🧨 3. The Quarter That Was (Q4 FY25)
| Metric | Q4 FY24 | Q4 FY25 | % YoY |
|---|---|---|---|
| Revenue | ₹40,925 Cr | ₹40,925 Cr | 0% |
| Net Profit | ₹7,975 Cr | ₹7,038 Cr | -12% |
| EPS | ₹19.2 | ₹16.9 | -12% |
Flat topline. Shrinking profit. And this is in a quarter when AI spending issupposedto be booming?
Even other IT peers like TechM and Wipro showed more quarterly enthusiasm.
🔬 4. So What’s Holding Them Back?
🔹 Enterprise Belt-Tightening
