Tag: Infosys

Infosys Ltd reported a one-time financial hit of Rs 1,289 crore in the third quarter of FY26 due to provisions made under India’s new labour codes, impacting its quarterly profit despite steady revenue growth.

The country’s second-largest IT services company said the charge was linked to changes required after the government notified the new labour codes in November 2025. These codes combine several existing labour laws and require companies to reassess employee-related benefits such as gratuity and leave encashment. Infosys accounted for higher gratuity liabilities arising from past service costs and revised benefit obligations, resulting in the exceptional expense.

For the quarter ended December 31, 2025, Infosys reported a consolidated net profit of Rs 6,654 crore, down 2.2 per cent year-on-year. On a sequential basis, profit declined more sharply due to the one-off provision. However, revenue from operations rose 8.9 per cent year-on-year to Rs 45,479 crore, reflecting stable demand across key markets.

The company said its underlying business performance remained healthy. Infosys recorded strong large deal wins during the quarter, with total contract value of about $4.8 billion. Financial services, manufacturing, and energy and utilities were among the key sectors contributing to growth. Digital and artificial intelligence-led services continued to see traction as clients focused on efficiency and transformation.

Encouraged by better-than-expected execution and deal momentum, Infosys raised its revenue growth guidance for FY26. The company now expects constant currency revenue growth of 3.0–3.5 per cent for the full year, compared with its earlier forecast of 2.0–3.0 per cent.

Infosys said operating margins were impacted by the labour code provision but added that margins remain stable when the one-time cost is excluded. The company maintained its margin guidance for the year, supported by cost control measures and improved utilisation.

Management said it continues to invest in upskilling employees, especially in AI and digital technologies, to stay competitive in a changing business environment. The labour code impact is also being seen across the IT sector, as companies adjust their balance sheets to align with the new regulatory framework.

Infosys stated that the provision is a one-time adjustment and does not affect its long-term growth strategy or financial strength.

Also Read: Trump pushes Microsoft on data centre costs

Infosys has significantly increased entry-level salaries for fresh graduates, offering packages of up to Rs 21 lakh per annum for specialised technology roles. The move is part of the company’s strategy to attract top talent in advanced digital and AI-related fields and positions it as a market leader in entry-level IT pay.

The company’s new salary structure is tiered to reward expertise in high-demand digital domains. Specialist Programmer L3 (Trainee) roles now offer Rs 21 lakh, L2 roles offer Rs 16 lakh, L1 roles Rs 11 lakh, and Digital Specialist Engineer positions start at Rs 7 lakh per annum. These packages are aimed at graduates from BE, BTech, ME, MTech, MCA, and integrated MSc programmes in computer science, IT, electronics, and related engineering streams.

Shaji Mathew, Infosys Group Chief Human Resources Officer, said the revised packages reflect the company’s commitment to building a workforce capable of delivering cutting-edge digital and AI solutions. “We are expanding our campus and off-campus hiring drives to bring in digitally skilled graduates under the specialist track, aligning talent acquisition with our AI-First strategy,” he added.

This revision marks a significant departure from the traditionally flat starting salaries in India’s IT sector, which often failed to keep pace with inflation or the rising demand for digital expertise. By offering differentiated pay for specialised roles, Infosys aims to attract graduates with the skills required to support its growing focus on artificial intelligence, cloud computing, and other emerging technologies.

The pay hike comes amid steady hiring momentum at Infosys, which onboarded around 12,000 freshers in the first half of fiscal 2025–26 and is targeting 20,000 graduates for the year. Other IT peers, including Tata Consultancy Services and HCLTech, have also introduced specialised pay tracks, but their top-tier offers remain below Infosys’s new benchmarks.

Also Read: North Korea reveals first nuclear submarine

Infosys is launching its biggest-ever share buyback worth ₹18,000 crore. The company will start buying back its shares from November 20, and the window will stay open till November 26.

Infosys will buy up to 10 crore shares at a fixed price of ₹1,800 per share. This is higher than the current market price, so some investors may choose to sell their shares back to the company.

Shareholders who held Infosys shares on the record date, November 14, are eligible to take part. Small shareholders (those holding shares worth up to ₹2 lakh) have a separate reserved quota.

To participate, investors must tender their shares through their broker on NSE or BSE. Those holding physical share certificates must send the required documents to the registrar, KFin Technologies, before the deadline.

Infosys says the buyback is part of its plan to return extra cash to shareholders. Promoters, including Nandan Nilekani and Sudha Murty, will not sell their shares in this buyback.

The company will complete payments to those whose shares are accepted by December 3.

Also Read: Bitcoin drops below $90,000, rebounds fast

Infosys Ltd has fixed November 14, 2025, as the record date for its ₹18,000-crore share buyback, marking one of the largest capital-return exercises in the company’s history.

In a stock exchange filing, the Bengaluru-based IT major said it would buy back up to 10 crore fully paid-up equity shares of face value ₹5 each at a price of ₹1,800 per share through the open market route. The buyback amount represents around 2.41 percent of Infosys’ total paid-up equity capital.

Approved by the board on September 11, the buyback aims to optimise the company’s capital structure, improve return ratios, and reward shareholders. The programme is expected to be completed over the next few months, subject to regulatory clearances.

Notably, Infosys’ promoters and promoter group, who hold approximately 13.05 percent of the company’s equity, have chosen not to participate in the buyback. Market analysts see this as a sign of management’s confidence in the company’s long-term growth prospects.

This is Infosys’ fifth buyback since 2017, and the largest by value. The company last conducted a ₹9,300-crore buyback in 2022 at ₹1,850 per share.

Infosys said the move reflects its commitment to returning surplus cash to shareholders while maintaining a strong balance sheet. The announcement came amid steady demand for digital transformation services and stable margins in the IT sector.

Shares of Infosys traded slightly higher after the announcement, with analysts noting that the buyback could help improve earnings per share and support valuations in the medium term.

Also Read: SEBI Widens IPO Anchor Investor Quota To 40%