Infosys Q1 FY27 Results Analysis: Revenue Jumps 14%, Large Deal TCV at $3.6B (INFY)

Infosys Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 48,211.00 Cr (+14.00% YoY) and PAT growth of +12.20% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Infosys reported a steady Q1 with 14% YoY revenue growth and operating margin within guidance. Strong large deal wins ($3.6B TCV) and AI revenue scaling to 8.2% are positive signals, but modest constant-currency growth of 2.4% and a narrowed full-year guidance suggest cautious near-term expectations.

Key Investment Insights

Key Positives

• Revenue grew 14.0% YoY to Rs.48,211 Cr with constant-currency growth of 2.4%
• Large deal TCV of $3.6 billion with 61% net new
• Free cash flow of Rs.9,051 Cr (116.5% of PAT)
• DSO improved to 63 days from 70 days YoY
• AI revenue reached 8.2% of total revenue
• Attrition moderated to 13.0% from 14.4% YoY

Risk Factors

• Revenue growth of 2.4% CC is modest relative to historical levels
• Operating margin expanded only 30 bps YoY to 21.1%
• Retail segment CC growth negative at -1.8%
• Life Sciences margin declined 407 bps YoY to 16.11%
• Cash and investments declined Rs.6,010 Cr due to acquisition outflows