India's Infosys pegs fiscal year 2027 revenue growth at 1.5%-3.5%

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BENGALURU, April 23 : Infosys, India's second-largest IT services firm, on Thursday forecast 1.5 per cent-3.5 per cent revenue growth for fiscal 2027, slightly below expectations, with the management saying the demand environment remained steady.

U.S.-listed shares fell 4.7 per cent in premarket trading.

The company reported quarterly revenue that beat analysts' estimates, aided by a pickup in demand from its financial services, energy, and communication segments.

Infosys had earlier flagged "good outlook" in the banking and energy segments for the fiscal year that started in April due to artificial intelligence-led demand.

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Revenue from the financial services segment, its largest, grew 5 per cent in the quarter ended March. 

"We expect acceleration of growth in financial services, and in energy, utilities, resources and services verticals," chief executive Salil Parekh said in a post-earnings call. 

India's $315-billion IT industry has been struggling with weak tech spending in key markets as clients focus on essential jobs or cost-optimising initiatives amid geopolitical turmoil and macroeconomic uncertainties.

However, a sharp fall in the rupee's exchange rate has boosted revenue, as software services companies bill in foreign currencies while incurring most costs in rupees.

Larger rival Tata Consultancy Services has reported better-than-expected quarterly results while allaying concerns about the business impact from AI ​tools. Wipro forecast a weak first quarter, citing muted demand. 

Infosys' consolidated sales rose 13.4 per cent to 464.02 billion rupees ($4.93 billion), surpassing analysts' average estimate of 460.30 billion rupees, according to data compiled by LSEG. 

The Bengaluru-based tech major's net profit rose 20.87 per cent to 85.01 billion rupees, surpassing the 74.65 billion rupees expected by analysts.

Large order bookings, or deals over $30 million, stood at $3.2 billion during the quarter, compared with $4.8 billion in the previous quarter and $2.6 billion in the year-ago period.

Its Mumbai-listed shares closed 2.2 per cent lower ahead of the results.

($1 = 94.1050 Indian rupees)

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