Introduction
Infosys Limited, one of India’s top IT services companies, announced its Q4 FY25 earnings on April 18, 2025. While the company reported a year-on-year (YoY) decline of 11.8% in its Q4 net profit, it delivered a record-high free cash flow (FCF) for the full year, highlighting its strong operational discipline and efficiency initiatives.
Despite global macroeconomic headwinds, Infosys has focused on strategic deals, cost optimization, and cash conversion, closing the financial year with a robust performance in several key financial metrics.
Infosys Q4 FY25 Results Highlights
- Q4 Net Profit: ₹7,033 crore, down 11.8% YoY
- Q4 Revenue: ₹40,925 crore, up 7.9% YoY
- FY25 Net Profit: ₹26,713 crore, up 1.8% YoY
- FY25 Revenue: ₹1,62,990 crore, up 6.1% YoY
- Operating Margin (Q4): 21.0% (up 90 bps YoY)
- FY25 Operating Margin: 21.1% (up 50 bps YoY)
- Record Free Cash Flow (FY25): ₹34,549 crore (up 44.8% YoY)
- Dividend Proposed: ₹22 per share final dividend; total ₹39 for FY25
- Large Deal TCV: $11.6 billion in FY25 (56% net new deals)
Revenue and Profit Performance
Infosys posted a 7.9% YoY rise in consolidated revenue to ₹40,925 crore in the January–March quarter. However, the company’s net profit declined to ₹7,033 crore, down from ₹7,976 crore in Q4 FY24.
This drop in quarterly profits is attributed to elevated costs, slower ramp-up of existing deals, and pressure on discretionary spending from global clients, especially in the BFSI and tech verticals.
For the full financial year 2024-25, Infosys reported a consolidated revenue of ₹1,62,990 crore, marking a 6.1% increase over FY24. The full-year net profit stood at ₹26,713 crore, a modest growth of 1.8% YoY.
Record-Breaking Free Cash Flow
Infosys delivered its highest-ever free cash flow in FY25, reaching ₹34,549 crore — a 44.8% jump compared to the previous fiscal.
This achievement underscores the success of its internal efficiency program, Project Maximus, aimed at streamlining operations and boosting financial flexibility.
🔹 Q4 FY25 Free Cash Flow: ₹7,737 crore, up 10% YoY
🔹 FCF Conversion Ratio: 129.2% of net profit
According to Jayesh Sanghrajka, CFO of Infosys, “FY25 operating margins expanded by 0.5% which reflects our relentless focus on identifying opportunities for efficiency and executing Project Maximus with discipline. We delivered the highest ever free cash flows in the history of the company in FY25.”
Operating Margins & Efficiency Initiatives
Despite topline challenges, Infosys reported margin expansion both quarterly and annually:
- Q4 Operating Margin: 21.0%, a 90 basis point improvement YoY
- FY25 Operating Margin: 21.1%, up 50 basis points YoY
The improvements are a result of:
✅ Cost optimization measures
✅ Strategic hiring and resource management
✅ Higher offshoring
✅ Operational restructuring under Project Maximus
Dividend Announcement for FY25
Infosys has announced a final dividend of ₹22 per share for FY25. This takes the total dividend for the year to ₹39 per equity share, a 13.2% increase compared to FY24.
This move underlines Infosys’ commitment to returning value to shareholders, even in a challenging business environment.
Large Deal Wins and Contract Value
Infosys secured large deals worth $11.6 billion in total contract value (TCV) during FY25, reflecting the company’s strong client relationships and ability to win strategic transformation mandates.
Notably, 56% of these deals were net new, highlighting the company’s ability to expand its client base and deliver competitive solutions across verticals like BFSI, manufacturing, and healthcare.
The consistent deal wins will provide revenue visibility for FY26, even as IT budgets remain under scrutiny globally.
EPS and Shareholder Returns
The basic earnings per share (EPS) for FY25 stood at ₹64.50, up 1.8% YoY, in line with profit growth.
However, Q4 FY25 EPS fell by 11.8% to ₹16.98, reflecting the dip in quarterly profits.
Infosys continues to strengthen shareholder returns through consistent dividend payouts and robust cash conversion.
Guidance for FY26
For the financial year 2025–26 (FY26), Infosys has provided:
- Revenue Growth Guidance: 0–3% in constant currency
- Operating Margin Guidance: 20–22%
This cautious outlook reflects continued macroeconomic headwinds, client-side decision-making delays, and pressure on discretionary IT spending.
Despite near-term volatility, Infosys remains optimistic about growth beyond FY26 as enterprises accelerate digital transformation.
Employee Metrics
Infosys’ total employee count at the end of FY25 stood at 323,578.
The company has adopted a balanced hiring strategy, focusing on:
- Improved employee utilization
- Reskilling programs to align with next-gen tech (AI, automation, cloud)
- Stable attrition rates, indicating better workforce retention
Infosys remains committed to investing in employee engagement and digital talent transformation.
Conclusion
Despite reporting an 11.8% decline in Q4 net profit, Infosys has ended FY25 on a high note with record free cash flows, solid margin expansion, and a strong large deal pipeline.
Its prudent capital allocation, focused execution under Project Maximus, and a clear commitment to shareholder returns make it a resilient player in the global IT services landscape.
Looking ahead, Infosys’ FY26 guidance remains cautious, but its strong fundamentals and transformation initiatives provide a solid base for long-term growth.
