Infosys Q4 Financial Results: Insights and Market Reactions
The recent financial results from Infosys for the January-March quarter of fiscal year 2024-25 have raised eyebrows among investors and analysts alike. On April 17, the IT giant reported a notable 11.75% decline in consolidated net profits, dropping to ₹7,033 crore, down from ₹7,969 crore in the same quarter last year. This disappointing performance has prompted the company to revise its revenue growth outlook for 2025-26, now forecasting a modest growth range of 0% to 3%, a significant decrease from the previously projected 4.5% to 5% for FY2024-25.
Revenue Performance and Dividend Announcement
In its fourth quarter, Infosys did see its revenue from core operations rise by 8%, reaching ₹40,925 crore compared to ₹37,923 crore a year earlier. Additionally, the company declared a final dividend of ₹22 per share for FY25, with the Record Date set for May 30, 2025, and payments scheduled for June 30, 2025.
However, the market reaction has been mixed. Infosys’ American Depositary Receipts (ADRs) fell by over 4%, trading at $15.68 soon after the announcement, down from the previous close of $16.58. In the Indian market, shares showed a slight recovery, closing 0.51% higher at ₹1,420.20 after the results were disclosed.
Analyst Insights on Infosys’ Performance
Susovon Nayak, an IT research analyst at Anand Rathi Institutional Equities, commented on the results, noting that the revenue decline was more severe than expected. He highlighted the muted guidance for FY26, predicting a growth rate of just 1.5% at the midpoint of the revised range. Nayak pointed to macroeconomic challenges and potential delays in client spending as contributing factors.
He also noted that the guidance for operating margins remains between 20-22%, with projections for FY26 free cash flow expected to exceed 100% of net profit. Furthermore, Infosys is expanding its footprint through the acquisition of MRE Consulting in the US and The Missing Link in Australia, enhancing its digital and cybersecurity services.
Future Outlook on Infosys Stock
On the technical front, Kunal Kamble, a senior technical research analyst at Bonanza Group, described the current trend of Infosys stock as forming a “Lower Low–Lower High” structure, indicating a negative trajectory. He pointed out that while recent buying activity suggests the stock might be entering an oversold zone, the overall trend remains bearish.
Kamble advised investors to consider any bounce in stock prices as an opportunity to sell, reinforcing the idea of caution in the current market environment.
For ongoing updates and insights into Infosys’ performance, be sure to stay tuned to our coverage on Q4 Results and market trends.
