Infosys Q3 results preview: PAT, revenue may grow by up to 9% YoY; FY26 guidance, deals pipeline in focus

As Infosys gears up to report its Q3 results on Wednesday, January 14, brokerages expect a seasonally soft quarter marked by modest sequential growth, stable margins, and a keen focus on management commentary around guidance, deal ramp-ups and client spending. While furloughs and fewer working days may cap near-term momentum, deal execution and cost optimisation initiatives are likely to lend some support.

India's second largest IT services company is expected to report a high single-digit growth up to 9% in its December quarter net profit according to estimates by four brokerages. The company's revenue is seen to rise by 8%-9%.

The estimates by YES Securities, ElaraCapital, Axis Securities and HDFC Securities have been taken into account.


The Street will keep its eyes fixed on the company's FY26 guidance along with updates on the deal pipeline, pace of deal ramp-ups and utilisation levels.

Here's what brokerages recommended:

1) PAT

YES Securities: Rs 7,392 crore, up 8.6% YoY and 0.4% QoQ

ElaraCapital: Rs 7,293 crore, up 7.2% YoY, down 1% QoQ

Axis Securities: Rs 7,425 crore, up 8.8% YoY and 0.7% QoQ

HDFC Securities: Rs 7,399 crore, up 8.7% YoY and up 0.5%v QoQ

Brokerages broadly expect high single-digit YoY profit growth, with sequential trends remaining largely flat.

2) Revenue

YES Securities: Rs 45,363 crore, up 8.6% YoY and 2% QoQ

Elara Capital: Rs 44,947 crore, up 7.6% YoY and 1% QoQ

Axis Securities: Rs 45,679 crore, up 9.4% YoY and 2.7% QoQ

HDFC Securities Rs 45,467 crore, up 8.9% YoY and Up 2.2% QoQ

In constant currency terms, YES Securities pegs revenue growth at 1.4% YoY and 0.5% QoQ, reflecting a seasonally weak quarter.

Infosys Q3 Results FY26 Live Updates: Check street estimates, price target and other details

3) EBITDA / EBIT

YES Securities (EBITDA): Rs 10,756 crore, up 6.3% YoY and 2.1% QoQ

Elara Capital (EBIT): Rs 9,290 crore, up 4.2% YoY, down 0.7% QoQ

Axis Securities (EBIT): Rs 9,666 crore, up 8.5% YoY and 3.3% QoQ

HDFC Securities: Rs 9,539 crore, up 7% YoY and up 2 QoQ

4) EBITDA / EBIT margins

YES Securities: EBITDA margin at 23.7%, largely flat QoQ

Axis Securities: EBIT margin at 21.2%, down 18 bps YoY but up 14 bps QoQ

HDFC Securities: Rs 21%, down 36 bps YoY and down 4 QoQ

Axis attributes the sequential margin improvement to Infosys’ cost optimisation initiative, Project Maximus.

5) Key monitorables

Street will watch out for the company's guidance.

HDFC Securities expects Infosys to raise FY26 revenue growth guidance by 1% to 3–4%, while maintaining its margin band of 20–22% while ElaraCapital expects the company Infosys to retain its FY26 revenue guidance of 2–3%, noting a low ask rate of -1.5% to -0.2% for the next two quarters.

Investors should watch out for watch for updates on deal pipeline, pace of deal ramp-ups, utilisation levels, margin outlook and trends in client spending amid global macro uncertainty.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)