Infosys Q4 results preview: net profit, income that is likely to fall, the margin can contract with 100 bps qoq; FY26 GUIDANCE EYED | Einsmark news

Infosys, the second largest IT service business in India, will announce its fourth results on Thursday, April 17. The IT major will declare its earnings for the fourth quarter of FY25 as well as for the full financial year 2024-2025 tomorrow. Infosys share price traded more than 2% lower on Wednesday before the announcement of the Q4 result. In the past one month, Infosys shares have dropped by more than 10%, while the IT share has dropped 25% on a year to date (YTD). The IT -large Infosys is expected to report a successive decline in revenue in the quarter of 2025 in March 2025 due to seasonal weakness in demand and pressure. Analysts also expect the company to lead a subdued leadership due to poor macroeconomic conditions due to the US global tariff war and a lack of mega transactions. Here is what you should expect from Infosys Q4 results 2025: Infosys Q4 income Infosys -Revenue in Q4FY25 is expected to drop 0.4% to £ 41,617 from £ 41.764 in the previous quarter. Dollar term turnover is estimated to drop 1.6% to $ 4.861 million from $ 4.939 million, quarter-to-quarter (QOQ). The company’s revenue growth in constant currency (CC) could drop by 310 basis points (BPS) to -1.4% in Q4FY25, according to estimates by JM Financial. Analysts said the growth wind for infosys includes lower billing days and normalization of third -party items for sales, while lower furloughs can serve as a tail wind. They expect 15 bps qoq cross-currency against the wind. Furthermore, lower revenue from the sale of third -party items for service delivery and seasonal weakness in demand for revenue for Infosys will fall. “March quarter was Achilles’ heel for Infosys,” Kotak Institutional Equities said. A major transaction (total contract value) is expected to amount to $ 3 billion, a decrease in the Yoy comparison. While the transaction pipeline is healthy, the closure of delays are due to slower decision making. Customers remain focused on cost extracts over discretionary spending, with tariff wars adding pressure, said brokerage firm Motilal Owal Financial Services. Infosys Q4 Net Profit Infosys is expected to report a net profit of £ 6.488 crore in the March 2025 quarter, which registers a 4.7% drop of £ 6,806 in the December 2024 -Quarter, according to JM Financial. Infosys Q4 EBIT, Margin Infosys’ operating performance in Q4FY25 is also expected to remain poor, with the company seeing the pressure on margins. At the operational level, earnings before interest and tax (EBIT) in Q4FY25 are estimated to drop by 5% to £ 8,472 from £ 8,912 crore, qoq. The EBIT margin in the third quarter is expected to contract with 100 bps to 20.4% from 21.3%, on the back of the wage increase, visa costs, lower factors days and higher marketing costs. However, cost optimization and lower expenses of third parties can partially compensate the impact. Infosys training for FY26 Motilal Oswal expects Infosys to offer an initial FY26 income growth guidelines of 2.5% -5%. Nuvama Institutional Shares estimate the IT most important to announce FY26 income growth training to 2% -5% CC Yoy and margins training to stay at 20% -22% for FY26. JM Financial expects Infosys to lead 3% -5% Yoy cc for FY26, while Kotak shares expect a CC income growth of 1% -4% for FY26. Infosys Q4 Results: What should you note for? In Infosys Q4 results, investors are likely to focus on the slowdown in spending due to tariff wars and the weakened macros, program chancellations, if any, strength of the transaction pipeline, especially the muted major transaction victories over the past three quarters and price pressure of the client of AI-driven efficacy. In addition, the margin levers in FY2026 and assumptions underlying guidance and whether guidance is being backed back or forwards will also be an eye. At 13:15, Infosys shares traded 0.96% lower at £ 1,413.55 per piece on the BSE. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions. First published: 16 Apr 2025, 01:16 pm Ist