Infosys Ltd., one of India’s top information technology services companies, is not announcing an interim dividend for the quarter ended June 30, 2026, as consolidated net profit for the first quarter of FY27 fell 8.6% sequentially.
The Bengaluru-based IT giant reported mixed financial results, with revenue and operating profit growing in line with revenue and operating profit were up but bottom line performance was hurt by high costs and other business concerns.
Net Profit Declines Sequentially
Infosys made a consolidated net profit of ₹7,769 crore in the April-June 2026 quarter as compared to ₹8,501 crore for the previous quarter.
Net Profit
Q1 FY27: ₹7,769 crore
Previous Quarter: ₹8,501 crore
Sequential Change: Down 8.6%
The decline in revenue was despite continued growth of the business, which is indicative of a margin decline during the quarter.
Revenue Continues to Grow
The company has been in stable business growth as consolidated revenue grew 3.9 percent quarter-on-quarter.
Revenue
Q1 FY27: ₹48,211 crore
Previous Quarter: ₹46,402 crore
Growth: 3.9% QoQ
The growth is a reflection of sustained demand for the company’s digital transformation, cloud, artificial intelligence and enterprise technology services.
Operating Performance Improves
Infosys also saw an improvement in operating earnings.
EBIT
Q1 FY27: ₹10,163 crore
Previous Quarter: ₹9,743 crore
Growth: 4.3% QoQ
The increase in Earnings Before Interest and Taxes (EBIT) shows that the operation is on track despite macroeconomic uncertainty and is performing very well in an improving economy.
EBIT Margin Remains Stable
The operating margin was very stable in the quarter.
EBIT Margin
Q1 FY27: 21.08%
Previous Quarter: 20.99%
The slight improvement points to the continued focus on operational efficiency and disciplined cost management by the company.
No Dividend for June Quarter
Indeed, one of the prominent features of the earnings announcement has been the lack of a dividend announcement.
Infosys has traditionally paid out dividends to shareholders through regular dividends. However, the board did not declare any dividend for the June quarter, which was a departure from the past.
The company did not give a reason for avoiding the dividend in its exchange filing.
Q1 FY27 Financial Highlights
Q1 FY27 Financial Highlights
Particulars Q1 FY27 Previous Quarter Change
Revenue ₹48,211 crore ₹46,402 crore +3.9%
EBIT ₹10,163 crore ₹9,743 crore +4.3%
Net Profit ₹7,769 crore ₹8,501 crore -8.6%
EBIT Margin 21.08% 20.99% Slight Improvement
Dividend Not Announced — —
Industry Outlook
The global IT services industry is still experiencing a mixed demand environment. While enterprises remain quite cautious about discretionary spending due to macroeconomic uncertainty, investments in artificial intelligence, cloud computing, cybersecurity, automation and digital transformation continue to generate long-term growth opportunities.
Infosys has been developing artificial intelligence capabilities and building its digital services portfolio to meet the needs of changing customers in all of our markets.
Outlook
Infosys had a mixed start to FY27 with revenue growth and earnings growth but a decline in net profit. The decision to discontinue an interim dividend will disappoint income-oriented investors, but the business is still performing well in difficult global markets.
Investors will be closely monitoring client spending trends in the future, large deal wins, AI-led growth opportunities and future capital allocation decisions, including dividend announcements in upcoming quarters.
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