Infosys Q2: 1.3% in Dollars, 10.7% in Rupees
Infosys earned revenue of US$5,145 million in the September quarter, 1.3% more than a year earlier; in constant currency the growth was 1.5%. In rupees the same revenue was ₹49,244 crore, up 10.7%. The difference is the exchange rate, not more work. The operating margin held at 21.0%, the company signed US$5.2 billion of large deals, and net profit in dollars fell 2.5%.
The quarter in numbers
| Q2 FY27 | Value | Year-on-year | Source |
|---|---|---|---|
| Revenue, US$ | 5,145 million | +1.3% | [F] |
| Revenue, constant currency | — | +1.5% | [F] |
| Revenue, ₹ | 49,244 crore | +10.7% | [F] |
| Operating margin | 21.0% | unchanged | [F] |
| Net profit, US$ | 817 million | −2.5% | [F] |
| Free cash flow, US$ | 928 million | against 1,101 million | [F] |
| Large-deal TCV | US$5.2 billion (62% net new) | — | [F] |
The board declared an interim dividend of ₹26 a share, with a record date of 3 November ([B]).
Where growth came from, and where it did not
| Industry | Share of revenue | Growth, constant currency | Source |
|---|---|---|---|
| Financial Services | 28.0% | 2.1% | [F] |
| Manufacturing | 16.0% | (0.7)% | [F] |
| Energy, Utilities, Resources & Services | 14.2% | 7.3% | [F] |
| Communication | 12.5% | 4.1% | [F] |
| Retail | 11.5% | (7.7)% | [F] |
| Life Sciences | 8.4% | 32.5% | [F] |
| Hi-Tech | 6.8% | (17.3)% | [F] |
By geography, North America, 54.6% of revenue, shrank 1.5% in constant currency, while Europe grew 4.6% ([F]). Three industries shrank; Life Sciences carried the growth.
Moat and margin
Focus moat: client depth. Infosys had 2,060 active clients, 42 of them paying more than US$100 million a year, against 41 a year ago; it added 142 clients in the quarter ([F]). Its top five clients are 12.2% of revenue, down from 13.0% ([F]). Large deals of US$5.2 billion, 62% of it new business, say clients are still signing long contracts ([F]).
Margin: steady without growth. The operating margin was 21.0% in both years ([F]). Holding the margin with almost no dollar growth points to cost control; it also leaves little cushion if pricing weakens. The company also reports AI work as 10.5% of revenue ([F]).
People and cash. Headcount was 332,542, almost the same as a year ago, and voluntary attrition fell to 12.7% ([F]). Days sales outstanding improved to 64 from 71 ([F]). Free cash flow fell to US$928 million from US$1,101 million, and consolidated cash and investments to US$4,720 million from US$6,173 million ([F]); the filings read do not say why.
MoatSCORE (Moat Screener, first pass): Infosys 4.76, AMBER+. For comparison, Tata Consultancy Services 5.15, Wipro 5.39, HCL Technologies 5.05 and Tech Mahindra 5.11 ([MS]).
The bear case
- Dollar growth is close to zero: 1.3% reported, 1.5% in constant currency ([F]).
- Three industries shrank, Hi-Tech by 17.3% ([F]).
- North America is shrinking in constant currency ([F]).
- Profit and cash fell in dollars: net profit down 2.5%, free cash flow down from US$1,101 million ([F]).
The case for
- Large deals of US$5.2 billion, 62% net new ([F]).
- Life Sciences up 32.5% and Energy and Utilities up 7.3% ([F]).
- A steady 21.0% margin, lower attrition and faster collections ([F]).
What to watch
- Whether the large deals turn into dollar growth above the low single digits.
- Hi-Tech and Retail, the two biggest drags.
- The rupee: the gap between 10.7% and 1.3% growth runs both ways.
Sources
- [F] Infosys, Q2 FY27 board outcome with fact sheet (NSE)
- [B] Infosys, Q2 FY27 board outcome (NSE)
- [MS] Moat & Margin, Moat Screener and How MoatSCORE works
Educational research, not investment advice. Every figure above is drawn from Infosys' own filings, read from the primary documents on 24 October 2026; derived figures are our arithmetic, labelled as such. MoatSCORE read live from the Moat Screener on 24 October 2026. No buy/sell recommendations, no price targets, no share prices. Moat & Margin is not a SEBI-registered Research Analyst or Investment Adviser.
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