For Salil Parekh, who completes eight years as Infosys’s chief govt in January 2026, the priority is rising the IT providers firm whose order e-book has little to boast of.
Infosys ended 2024-25 with massive offers price $11.6 billion, down 34% year-on-year. This order e-book additionally lacked contracts valued above $1 billion, important in filling an IT outsourcer’s income coffers.
Avenue expectations
Nonetheless, analysts are assured of Parekh’s guess on the 2 acquisitions. Infosys is predicted to publish the quickest income development among the many prime 5 Indian IT gamers, of as much as 3.5% sequentially, confirmed a Mint evaluation of at the least 5 brokerages.
This optimism follows a lacklustre present by the remainder of the highest 5 within the first quarter of 2025-26. Tata Consultancy Companies Ltd, the most important Indian IT outsourcer, and Wipro Ltd, the fourth largest, reported income declines of 0.59% and 0.35%, respectively. Third-largest HCL Applied sciences Ltd and fifth-largest Tech Mahindra Ltd reported sequential income development of 0.97% and 1.97%, respectively. Alternatively,
For Infosys, talks of a $3 billion deal renewal with automaker Daimler, larger billing days, and dependence on income from banks and monetary establishments are anticipated to extend the prospects of a first-place end among the many friends.
Nonetheless, the shortage of big-ticket offers isn’t pleasing buyers. The corporate’s shares declined 14.82% within the first six months of 2025, second solely to TCS, whose shares fell 15.58%. HCL Applied sciences and Wipro’s shares fell 9.94% and 11.6%, respectively. The BSE Sensex gained 6.82% through the interval.
Macroeconomic uncertainty resulting in shoppers holding off on their tech spends is simply anticipated to worsen the street forward for the nation’s second-largest IT providers supplier ought to it not report a sturdy deal pipeline.
On prime of it, US President Donald Trump’s tariff conflict is making it harder for firms to supply supplies to run their companies, which is resulting in IT challenge deferrals and cancellations.
With this backdrop, Mint lists the 5 anticipated speaking factors throughout Infosys’s earnings announcement on 23 July.
1. Demand outlook
Infosys publicizes its first-quarter report card at a time when macroeconomic situations are unsure. Whereas its massive deal order e-book is strained, it may need to depend on massive vendor consolidation offers and AI-led contracts, which could embrace income cannibalization.
This comes at a time when friends have given combined opinions. Whereas TCS, Wipro, and Tech Mahindra have referred to as out uncertainties within the spending atmosphere, HCLTech stated the state of affairs was steady and never as unhealthy as anticipated.
At the least one brokerage anticipated the unsure macros to influence deal closures. “New deal closures are delayed as shoppers nonetheless want readability on how their provide chains and value construction will likely be affected resulting from latest tariff bulletins,” stated ICICI Securities analysts Ruchi Mukhija, Aditi Patil, and Seema Nayak, in a 1 July observe.
The administration’s commentary on shopper behaviour and new deal wins will likely be tracked carefully.
2. Income
The corporate is predicted to report a powerful first quarter, fueled by its acquisitions of MRE Consulting and The Lacking Hyperlink. At the least two brokerages anticipate the acquisitions to contribute 30 foundation factors (bps) to the corporate’s first-quarter income. One foundation level is one-hundredth of a share level.
“The revised steering might embrace ~40 bps from The Lacking Hyperlink and MRE Consulting acquisitions,” stated Kotak Institutional Equities analysts Kawaljeet Saluja, Sathishkumar S., and Vamshi Krishna, in a 30 June observe.
Its income from banks can be anticipated to leap as 4 of the corporate’s deal wins final quarter got here from banks, which make up virtually a 3rd of the corporate’s income. Analysts anticipate the corporate to boost the full-year income steering to 1.5%-3.5% in fixed foreign money phrases.
3. Working margins
Infosys’s working margins are anticipated to say no as it’s anticipated to soak up the influence of the 5-8% offshore wage hike and ramp-up of enormous offers within the quarter. The corporate’s plans to reduce the influence of the wage hikes will likely be gauged as two of the 4 largest IT outsourcers, together with HCLTech and Wipro, have reported a decline in margins.
4. Hiring
Infosys added greater than 6,000 workers in 2024-25, and its plan for added hiring will likely be gauged, even because it has deferred onboarding of a number of of its new joinees prior to now. The corporate’s plans on hiring new workers may even be tracked as a result of it comes at a time when friends have already referred to as out a plan to chop headcount in sure geographies outdoors India. AI lowering the necessity for fewer folks can be anticipated to place a cog in its hiring plans. Save TCS, which added 5,000 workers final quarter, every of the remaining firms has lowered its workforce.
5. AI
Infosys doesn’t declare income or orders from Gen AI, in contrast to its bigger peer Accenture, which has acquired $7.1 billion in complete orders from Gen AI since September 2023.
Infosys chairman Nandan Nilekani, in his 2025 handle to shareholders on the launch of the corporate’s annual report, stated that“the arrival of AI with all its prospects and potential creates one other arc of uncertainty. As enterprises take a look at making use of AI to each side of the enterprise, some long-standing challenges will turn into crucial and self-evident to companies.”
Analysts have already identified that AI is resulting in IT companies cannibalizing their income to go Gen AI-led productiveness to shoppers. Towards this backdrop, Infosys’s commentary on the brand new expertise will likely be tracked.