The second-biggest software services firm in India, Infosys, announced a 4.6% increase in net profit for the quarter that ended in December 2024, from ₹6,506 crore to ₹6,806 crore.
Infosys Share Price Cracks 5% after Q3 Results:
Following an overnight decrease in the IT giant’s American Depositary Receipt (ADR) listed on the New York Stock Exchange (NYSE), the share price of Infosys fell by about 5% on Friday. On the BSE, Infosys shares fell as much as 4.9% to ₹1,832.00 per.
Following the company’s January 16 post-market hours results release for the third quarter of FY25, Infosys shares began to decline. Following releasing the company’s Q3 earnings, Infosys ADR closed Thursday at $21.57, down 5.77%.
Like ordinary shares of US corporations, American Depositary Receipts (ADR) is a technique overseas companies use to trade on US stock exchanges. Additionally, an ADR is conceptually comparable to a special certificate that a US bank issues.
Following the Q3 2025 data release, the NYSE saw significant selling pressure on the Infosys ADR price. The pattern is anticipated to occur on the Indian stock market during Friday morning trades as this indicates that US stock investors have given the Infosys Q3 reports a thumbs down. According to Anshul Jain, Head of Research at Lakshmi Shree Investment and Securities, the IT stock is anticipated to open with a negative gap.
The second-biggest software services firm in India, Infosys, announced a 4.6% increase in net profit for the quarter that ended in December 2024, from ₹6,506 crore to ₹6,806 crore. Revenue for the IT giant increased 2% from ₹40,986 crore to ₹41,764 crore in Q3FY25. Revenue in USD was $4,939 million, while constant currency increased by 1.7% every quarter. While EBIT margin improved by 20 basis points QoQ to 21.3%, EBIT climbed 3% QoQ to ₹8,912 crore.
Previously predicting CC revenue growth of 3.75% to 4.5% for FY25, Infosys increased its estimate to 4.5% to 5%. For FY25, it stuck to its operating margin forecast of 20% to 22%.
Infosys Q3 Results Review:
The second-biggest software services firm in India, Infosys, announced a 4.6% increase in net profit for the quarter that ended in December 2024, from ₹6,506 crore to ₹6,806 crore. Revenue for the IT giant increased 2% from ₹40,986 crore to ₹41,764 crore in Q3FY25. Revenue in USD was $4,939 million, while constant currency increased by 1.7% every quarter. While EBIT margin improved by 20 basis points QoQ to 21.3%, EBIT climbed 3% QoQ to ₹8,912 crore.
Previously predicting CC revenue growth of 3.75% to 4.5% for FY25, Infosys increased its estimate to 4.5% to 5%. For FY25, it stuck to its operating margin forecast of 20% to 22%.
At 28x Dec-26E EPS, Emkay Global maintained its “Purchase” recommendation on Infosys shares, setting a target price of ₹2,150 per share.
In Q3FY25, Infosys produced strong financial results that exceeded street predictions on every front, according to Sagar Shetty, Research Analyst at StoxBox.
“The company’s remarkable revenue growth offset the impact of the seasons and was driven by comprehensive growth across all segments.” One of the quarter’s major highlights was the BFSI segment’s strong comeback. The benefits of increased realization and scale were the leading causes of the margin increase. A 157% free cash conversion to net profits was achieved in Q3 due to a strong focus on cash flow management, and free cash generation for 9MFY25 exceeded FY24. A possible recovery in economic momentum is highlighted by the noteworthy adjustment of revenue growth projection to 4.5-5% from 3.75-4.5%, which incorporates increases on both ends of the range scale, Shetty added.
TCV was $2.5 billion, down 22% year over year, but the business is still optimistic about the future thanks to a more substantial transaction pipeline. He stated that measuring shifts in the dynamics of the demand environment will need the management’s perspective on discretionary spending, deal conversion forecast, and future pipeline and deal wins. On the BSE, Infosys shares were down 4.09% at ₹1,847.40 at 9:30 AM.
