Infosys net profit rises 13.2% to $883m in Q2 2025

Infosys reported a 13.2% year-on-year rise in net profit for Q2 2025, reaching 7,364 crore rupee (US$883 million).

The Bengaluru-based IT services company also saw revenue climb 8.6% year-on-year to 44,490 crore rupee (US$5.33 billion) for the July-September period.

In dollar terms, revenue was US$5.1 billion, up 2.9% year-on-year in constant currency.

Infosys narrowed its full-year revenue growth forecast to 2-3%, raising the lower end from its previous 1-3% range, and kept its operating margin guidance at 20-22%.

Analysts had expected net profit of 7,128 crore rupee (US$854 million) and revenue of 40,877 crore rupee (US$4.9 billion).

Growth was strongest in financial services and manufacturing, with gains also in energy, utilities, communications, and hi-tech, while retail and life sciences saw revenue drop.

North America and Europe reported revenue growth, while other regions saw a decline.

CEO Salil Parekh said the company remains cautious due to inflation and job constraints in some markets.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

Infosys guidance bump hides doubts on when deals start

Infosys lifted full-year revenue guidance to 2-3% from 1-3%. The piece skips metrics like total contract value (TCV) of new deals, the mix of net-new (brand-new contracts) versus renewals, and deal ramp timing (when a signed contract starts generating revenue). These reveal how much near-term growth is locked in versus tied to new wins.
CEO Salil Parekh sounded cautious about cost constraints and weak hiring in some markets. Clients may be pushing out approvals and ramp starts. That can create a gap between bookings (signed contract value) and revenue that guidance does not capture.
Europe grew 6.3% vs North America at 2%. Without book-to-bill ratios (orders booked divided by revenue billed) or pipeline health (qualified opportunities expected to close) by region, we cannot tell if this pace lasts or if teams just worked through backlogs faster 1.

BFSI and manufacturing growth creates openings for mid-tier IT firms

Infosys growth came from BFSI plus manufacturing. North America and Europe also expanded. Mid-tier IT services firms, software-as-a-service (SaaS) providers, infrastructure vendors, and staffing companies can target outsourcing renewals in these areas 1.
Many BFSI teams want outcome-based contracts (vendors paid for results rather than effort) and AI-powered automation. These needs speed up Environmental, Social, and Governance (ESG) reporting requirements and real-time financial insights. Specialists can win carve-outs (splitting parts of large outsourcing deals into separate awards) or co-sourcing arrangements 2. Co-sourcing splits delivery between in-house teams and a vendor. Providers can prove niche skills in sustainability accounting or predictive analytics.
Manufacturing digital upgrades open doors for vendors with vertical-specific solutions (industry-tailored software and services). Large firms may skip smaller deals, which creates room for focused players 3.