Infosys Q1: consol. PAT ₹7,769 Cr +12% YoY but misses Street; FY27 growth guidance trimmed

Infosys opened FY27 with a steady-but-soft print: consolidated revenue of ₹48,211 Cr (+14.0% YoY, +3.9% QoQ) and net profit attributable to owners of ₹7,769 Cr (+12.2% YoY). Both lines came in below the Bloomberg consensus of roughly ₹49,152 Cr revenue and ₹7,927 Cr profit, making this a modest miss on expectations even as the reported year-on-year numbers stayed double-digit. Crucially, the ₹-denominated +14% revenue growth is flattered by rupee depreciation — in constant-currency terms growth was just 2.4% YoY and 1.0% QoQ, so the underlying demand picture is muted rather than accelerating.

The more consequential signal was guidance: management trimmed its FY27 constant-currency revenue growth band to 1.5%–3.0% from the prior 1.5%–3.5%, cutting the ceiling while retaining the 20%–22% operating-margin guidance. Operating margin held at 21.1% (up ~0.2pp QoQ, broadly flat YoY), so profitability is intact and well within the guided band, but the top-line downgrade contradicts the more optimistic FY27 acceleration tone management struck on the Q3 FY26 call (where it had pointed to Financial Services and Energy & Utilities recovery on the back of $4.8B large-deal TCV). Net profit fell 8.7% sequentially off an elevated Q4 FY26 base (₹8,509 Cr), but with YoY as the primary lens the quarter reads as growth intact, momentum easing.

The stock went into the print at ₹1,121, up 7% over the past month of trading.

For context: revenue is at a 6-quarter high.

Deal signing supports the cautious read: large-deal TCV was $3.6B with 61% net-new, down from the $4.8B management flagged in Q3, while AI-related work reached 8.2% of revenue. That sits alongside a busy quarter of wins — a 10-year IT transformation deal with Crocs, Finacle mandates at HDFC Bank (wealth) and Investec (digital banking), and expanded AI collaborations with Metsä Group and Knorr-Bremse — which underpin the pipeline but had not yet lifted the CC growth rate. Net: Infosys delivered on margins and double-digit reported profit growth, but missed the Street on both lines and lowered its own growth ceiling, keeping the FY27 setup dependent on a second-half discretionary-spend recovery that has not yet shown up in the numbers.