1. At a Glance
Q1 FY26 was a polite nod from Infosys — not a standing ovation. Revenue up 4.8%, net profit $809M (₹6,924 Cr), margins stable at 20.8%. Clients stayed loyal, employees didn’t riot. But at ₹1,574/share and a P/E of 24, Mr. Market isn’t exactly head-over-keyboard in love.
2. Introduction with Hook
Imagine your dad started coding. He’s reliable, experienced, doesn’t crash, but he still thinks “Java” is the future. That’s Infosys. The IT dinosaur with a LinkedIn Premium account — slow but not extinct. Q1 FY26? Steady, sober, and safe — like butter naan with no butter.
- Digital now 57%+ of revenues
- ROE still rocking at 29%
But growth? As exciting as a Zoom call on Friday evening.
3. Business Model (WTF Do They Even Do?)
Infosys is basically the Swiss Army knife for enterprise IT:
- Consulting? Check
- Outsourcing? Yawn, check
- Cloud, AI, Cybersecurity, Blockchain, IoT? Check, check, check (and still hiring more checks)
They serve banking, retail, telecom, manufacturing — basically, if your sector has a boardroom, Infosys has a deck.
4. Financials Overview
| FY (₹ Cr) | FY23 | FY24 | FY25 | TTM |
|---|---|---|---|---|
| Revenue | 1,46,767 | 1,53,670 | 1,62,990 | 1,65,954 |
| EBITDA | 35,130 | 36,425 | 39,236 | 39,741 |
| Net Profit | 24,108 | 26,248 | 26,750 | 27,300 |
| OPM % | 24% | 24% | 24% | 24% |
Commentary:
If consistency was a brand, Infosys would trademark it. But 2% PAT growth? That’s called cruising in neutral.
5. Valuation
- P/E: 24.0x
- P/B: 6.89x
- Dividend Yield: 2.73%
- ROE: 28.8%
Fair Value Range: ₹1,400 – ₹1,650
Above ₹1,700? You’re paying for nostalgia and Narayana Murthy’s brand halo.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Results:
- ₹42,279 Cr revenue (+4.8%)
- ₹6,924 Cr PAT
- Margin: 20.8%
- No layoffs, no scandals, no excitement
- Client Additions: Steady — still the go-to tech concierge for Fortune 500
- AGCO + Telstra Partnerships: AI transformation, IT modernization, and just enough jargon to make consultants salivate
7. Balance Sheet
| Metric | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 2,073 |
| Reserves | 93,745 |
| Borrowings | 8,227 |
| Fixed Assets | 30,961 |
| Cash & Equiv (est.) | ~₹35,000+ |
| Total Assets | 1,47,795 |
- Debt exists now (₹8,227 Cr) — probably just to feel relatable
- Reserves? More than many countries’ GDP
8. Cash Flow – Sab Number Game Hai
| FY | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net CF (₹ Cr) |
|---|---|---|---|---|
| FY23 | 22,467 | -1,071 | -26,695 | -5,299 |
| FY24 | 25,210 | -5,093 | -17,504 | 2,613 |
| FY25 | 35,694 | -1,864 | -24,161 | 9,669 |
If free cash flow were a movie — this is Bahubali-level blockbuster. They pay, save, and still end up with a pile of cash.
9. Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 28.8% |
| ROCE | 37.5% |
| OPM | 24% |
| D/E | ~0.1 |
| Dividend Payout | 67% |
In finance gym lingo: Infosys is lean, high-rep, low-fat, and always wearing a tie.
10. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| FY23 | 1,46,767 | 35,130 | 24,108 |
| FY24 | 1,53,670 | 36,425 | 26,248 |
| FY25 | 1,62,990 | 39,236 | 26,750 |
Growth? Present, but not putting on a fire show.
11. Peer Comparison
| Company | Rev (Cr) | PAT (Cr) | P/E | ROE (%) |
|---|---|---|---|---|
| TCS | 2,56,148 | 49,273 | 23.3 | 52.4 |
| Infosys | 1,65,954 | 27,300 | 24.0 | 28.8 |
| HCL Tech | 1,19,347 | 16,976 | 24.4 | 25.2 |
| LTIMindtree | 38,706 | 4,719 | 33.3 | 21.5 |
| Tech Mahindra | 53,334 | 4,504 | 33.6 | 14.6 |
Infosys is the solid 2nd — not the cheapest, not the flashiest, but dependable like filtered coffee in Bangalore.
12. Miscellaneous – Shareholding, Promoters
| Holder | Jun 2025 |
|---|---|
| Promoters | 14.61% |
| FIIs | 31.92% |
| DIIs | 39.39% |
| Public | 13.62% |
- Promoters don’t hold much — it’s a true corporate entity
- DIIs love it like it’s an Indian mutual fund rite of passage
13. EduInvesting Verdict™
Infosys is the sensible sedan in a market full of Teslas and tuk-tuks. No drama, no shock, just miles of clean execution. Q1 FY26 didn’t surprise anyone — which may be a good or bad thing depending on whether you like fireworks or spreadsheets.
A reliable portfolio anchor — just don’t expect it to dance at the growth party.
Metadata
Written by EduInvesting Team | July 23, 2025
Tags: Infosys Ltd, IT Services, Q1 FY26 Results, EduInvesting Premium
