Infosys Ltd., a Bengaluru-based IT company, is preparing to announce its second-quarter profits for fiscal year 2025-26 on Thursday, October 16, 2025. Analysts think that both the top and bottom lines will go up in a row, largely because of recent transaction ramp-ups and acquisitions that add to the company’s bottom line. Investors want to know how the company will do in a challenging economy because the financial services sector is likely to be strong, while other industries are displaying varied results.
Revenue Expectations: Sequential Growth on the Cards
Infosys’ revenue for the second quarter ended September 30, 2025, is projected at ₹44,068.63 crore, reflecting a 4.23% quarter-on-quarter (Q-o-Q) growth. Analysts anticipate a 7.52% increase in revenue year on year (Y-o-Y), indicating consistent growth pace. Revenue is likely to increase due to both recent deal ramp-ups and inorganic contributions from the company’s latest acquisitions..
The growth trajectory suggests that Q2 would be better than Q1, when sales was ₹42,279 crore, a 3.3% increase from the previous quarter. Both numbers had surpassed Bloomberg’s estimates, setting a positive precedent for the upcoming results.
Profit Outlook: Sequential Improvement Anticipated
Net profit for the September quarter is expected to rise to ₹7,200.22 crore, up 4.04% sequentially, and show a 10.67% Y-o-Y increase. This comes after the June quarter net profit of ₹6,921 crore, which had seen a 1.6% sequential decline. Analysts believe that the improvement in profitability will be driven by operational efficiencies, better realization from large deals, and careful cost management.
Deal Wins and Inorganic Growth: Key Drivers
A significant portion of the expected Q2 revenue growth is attributed to recent deal wins and the integration of acquisitions completed in the past few quarters. Analysts say that inorganic contributions are likely to add 10 to 30 basis points to the overall increase, depending on what brokers think. These transactions, particularly in the BFSI and manufacturing industries, have helped Infosys continue to develop even though the economy as a whole has been uneven.
Segment-Wise Outlook: BFSI Remains Strong
Among various verticals, the Banking, Financial Services, and Insurance (BFSI) sector continues to show resilience. Retail, on the other hand, faces softness, largely due to tariff uncertainty, while the auto segment remains weak. It is expected that challenges in other industries will be substantially mitigated by the strength of prior transaction victories in core manufacturing and industrial verticals. Due to its diverse industry performance, analysts emphasize that Infosys is well-positioned to maintain consistent growth in the face of external challenges.
Kotak Securities’ Perspective
Kotak Securities forecasts a 1.8% Q-o-Q revenue growth, driven by higher billing days and continued strength in the BFSI vertical. The firm thinks that EBIT margins will stay the same from year to year and quarter to quarter. Kotak also points out that the total contract value (TCV) of the big transaction is expected to be $3 billion, which is a 22% increase from last year but a decrease from the previous year. Based on these factors, the brokerage predicts that Infosys may raise its FY26 revenue growth guidance to 2–3%, up from the earlier 1–3%.
Motilal Oswal’s Expectations
Motilal Oswal projects a 2.4% Q-o-Q revenue growth in constant currency (CC), aided by recent deal ramp-ups and a 30 basis points inorganic contribution. Operating margin is expected to improve by 40 basis points, supported by better realization, the absence of wage hikes, and lower third-party expenses. The firm thinks that Infosys would keep its FY26 sales forecast of 1–3% Y-o-Y in CC. Motilal Oswal says that BFSI is still strong, but retail and auto sectors may have problems. These problems could be partly made up for by improvements in the manufacturing and industrial sectors.
Nuvama Institutional Equities’ View
According to Nuvama Institutional Equities, Infosys’ revenue is projected to grow 1.8% sequentially in CC and 2.1% in US dollar terms, with 10-15 basis points contribution from acquisitions. EBIT margin is expected to expand by around 20 basis points, aided by operating leverage and favorable currency movements. Nuvama also thinks that Infosys would keep its FY26 revenue guidance at 1–3% Y-o-Y in CC (with 0.4% coming from outside sources) and its margin guidance at 20–22%.
Margin and Currency Impact
Margins are likely to remain broadly stable, with small sequential improvements expected due to operating leverage, cost management, and the absence of wage hikes. Adjustments to post-sales customer service arrangements may offset some of the benefits of rupee depreciation. Analysts predict that EBIT margins will hold steady, highlighting effective operations and stringent cost oversight.
Key Events: Q2 Earnings Announcement
Infosys will publicly report its second-quarter results at 3:45 p.m. IST on Thursday, October 16, 2025. An event for the press will be held by the business at 4:15 p.m. IST, where the leadership team will address questions from the media. This session will be streamed live on the Investor Relations section of Infosys’ website, and an archive will be available after 6:15 p.m. IST.
Following the press conference, Infosys will conduct a 60-minute earnings call at 5:30 p.m. IST, open to investors and analysts across regions. Participants can pre-register using the DiamondPass™ link to connect seamlessly without operator assistance. Additionally, a call transcript will be made accessible for reference.
What Investors Will Watch
As Infosys approaches its Q2 earnings release, investors are closely monitoring several factors:
The role that deal ramp-ups have in increasing revenue
Segmental performance, particularly in manufacturing, retail, and BFSI
Trends in margins and cost effectiveness
Updates to FY26 guidance on expected revenue and margins
Impact of recent acquisitions on integration
The impact of currency fluctuations on sales denominated in dollars
In light of these variables, the market’s perception may depend on Infosys’s ability to sustain steady growth and margin stability in the face of international economic uncertainty.
Final Thoughts
Infosys’ Q2 preview suggests a cautiously optimistic outlook. While BFSI continues to anchor growth, other verticals show mixed trends. Margin stability is anticipated, with incremental help from deal wins and inorganic additions. Investors can assess the company’s trajectory for FY26 by attending the earnings announcement and analyst call on October 16, 2025.
Overall, Infosys appears well-positioned to navigate sectoral challenges, maintain steady growth, and uphold profitability. However, as always, market watchers and investors should pay close attention to segmental performance, deal execution, and guidance updates to assess how the IT major plans to sustain momentum in a competitive environment.
