India's second-largest IT company by market capitalisation, Infosys, announced on July 23 that CEO and MD Salil Parekh will step down from his role effective April 1, 2027, bringing to a close a nearly nine-year stint during which he steered the company through operational stability, digital transformation, and the early wave of enterprise artificial intelligence. The board has appointed Ashiss Kumar Dash as CEO Designate, with Dash currently serving as executive vice-president and global head of services, utilities, resources, energy & enterprise sustainability. Dash has been with Infosys for over three decades, having joined the company in May 1995 as a senior engagement manager. The board approved the appointment of Dash as CEO-designate until March 31, 2027. Subject to statutory approvals, he will take over as CEO and Managing Director from April 1, 2027, for a five-year term ending March 31, 2032. Parekh, who joined Infosys in January 2018, is the longest-serving non-founder CEO in the company's history, with his current five-year term scheduled to end on March 31, 2027. Parekh will continue to lead the company until March 31, 2027, and work closely with Dash to ensure a smooth transition. As per Business Standard, Dash is an alumnus of the Indian Institute of Technology (IIT), Kharagpur, India, and has completed the Global Leadership Program at Stanford University and the Senior Executive Program at London Business School. In an internal letter to employees on July 23, Nilekani said the need to find an internal CEO was important to preserve the company's values, stating "Our industry is entering a period of considerable change. The Board and I were clear that our next CEO needed to combine the ability to drive bold transformation with the judgment to preserve our culture, our values, and the enduring customer trust."
According to the latest exchange filing, Infosys delivered mixed financial results for the April-June quarter of financial year 2026-27. Revenue for the three months ended June rose 14.03% year-on-year to ₹48,211 crore, with sequential growth of 3.90% from ₹46,402 crore in Q4 FY6. However, consolidated net profit declined 8.61% sequentially to ₹7,769 crore from ₹8,501 crore in Q4 FY6, despite the strong year-on-year growth of 12.25% YoY. On a sequential basis, net profit declined 8.61% from ₹8,501 crore, reflecting normal quarterly seasonality. Basic EPS increased 14.91% YoY to ₹19.19, while diluted EPS also grew 14.93% YoY to ₹19.17. Operating margin improved to 21.1% from 20.8% in the year-ago quarter, with gross profit rising 16.27% YoY to ₹15,178 crore and operating profit increasing 15.45% YoY to ₹10,163 crore. Profit before Tax (PBT) increased 13.22% YoY to ₹11,028 crore from ₹9,740 crore. In constant currency terms, revenue grew 1% sequentially and 2.4% year-on-year, while in dollar terms, revenue stood at $5,082 million, registering growth of 0.8% QoQ and 2.8% YoY. During the post-result conference call, management attributed the sequential decline to a one-off 50 basis points impact on account of program termination by an energy, utilities, resources and services (EURS) client during the quarter, noting that volumes remained soft, falling short of expectations and historical Q1 trends. In dollar terms, revenue is estimated at $5,065 million, a sequential increase of 0.5% from $5,040 million.
Infosys secured large deal wins worth $3.6 billion during Q1 FY27, with 61% being net new deals, highlighting continued demand across digital transformation and AI-led engagements. AI-led services contributed 8.2% of total revenue, reflecting increasing adoption of artificial intelligence across client engagements. The company generated $417 million in revenue from advanced artificial intelligence during the June quarter, marking significant growth from the $280 million AI revenue announced in February. The company's headcount was 532 lower from the preceding quarter to 328,062 employees, reflecting the company's strategy to align with shifting client demands towards AI and efficiency. The company had 2,027 active clients as of 30th June 2026, compared with 1,861 a year earlier, demonstrating strong client base expansion. The IT services last 12-month attrition was 13% versus 12.6% a quarter ago, indicating an improvement in employee retention. The company is planning to hire 20,000 freshers this year, with 4,000 employees already hired in Q1FY27. According to an executive familiar with the developments at Infosys, Dash has been instrumental in securing several strategic global clients, including British Petroleum, Shell, Global Foundries, and Valmet. The deal with BP was a contract valued at $1.5 billion. During the company's Investor AI day on 17 February, Dash threw light on the importance of artificial intelligence in his segment, stating "Energy decides the physical scalability of AI, utilities decides the reliability and sustainability of AI, resources decides the material availability of AI because of the materials they supply, and services continue to be the big consumers of AI when it comes to inferences because of primarily the B2C (business-to-consumer) nature of their business."
The company lowered the upper end of its FY27 constant currency revenue growth guidance to 3%, from 3.5% earlier in Q4 FY6, while retaining the lower end at 1.5% and reaffirming its operating margin guidance of 20%22%. Management noted that uncertainty and geopolitical instability is causing some clients hesitancy as spending patterns are taking a more cautious approach, with client priorities centred on efficiency, productivity and modernization, with discretionary spend being evaluated more carefully. Salil Parekh, CEO and MD, stated that AI momentum is now rapidly converting into revenue, which demonstrates how Infosys differentiated enterprise AI value proposition is translating into consistent market share gains. Strong large deal wins, powered by Infosys Topaz, reinforce client confidence in our ability to be the strategic partner of choice for AI transformation driving tangible business value. With strategic partnerships established with all leading AI companies, we are bringing the power of the innovation ecosystem to help clients accelerate operational productivity and unlock growth opportunities. Jayesh Sanghrajka, CFO, said, Our resilient margins of 21.1% and consistent strong cash generation reflect the strength of our business model, disciplined execution and continued focus on operational excellence in a challenging business environment. We are accelerating investments in AI, talent, and platforms to drive future growth and remain committed to improving productivity, expanding operating leverage and maintaining the financial flexibility needed to capitalize on emerging opportunities while delivering sustainable shareholder value.
Infosys shares rallied as much as 3.5% to ₹1,077.50 on the NSE in early trade on Monday, July 27, reflecting positive investor sentiment following the leadership transition announcement. While the company's narrowed FY27 revenue guidance disappointed the Street, investors are now expected to shift their focus to its AI strategy and the leadership transition under CEO-designate Ashiss Kumar Dash. The stock reaction comes as investors closely track management commentary on FY27 revenue guidance, large deal wins and demand trends across key verticals. Brokerages remain divided on whether Infosys will revise its FY27 revenue outlook. Kotak Institutional Equities expects the company to raise the lower end of its constant currency revenue growth guidance by 50 basis points to 2% - 3.5%, citing improving execution and healthy demand. On the other hand, Motilal Oswal Financial Services (MOFSL) expects Infosys to adopt a more cautious stance by lowering the upper end of its revenue guidance to 3% CC, reflecting ongoing macroeconomic uncertainty. Investors will closely watch Infosys's comments on net new contract of large deal TCV (55% for Q1 FY26), commentary on the telecom and manufacturing segments, and the impact of macroeconomic uncertainty and artificial intelligence on business growth. Phil Fersht, chief executive of HFS Research, noted that "His appointment signals continuity rather than a strategic reset. The board clearly believes Infosys is operationally strong and doesn't require a turnaround. Instead, it has chosen an insider who understands the firm's culture, clients and delivery engine." ICICI Securities analysts stated "Elevating Infosys veteran Mr. Ashiss Dash to the CEO role ensures a smooth transition in the current uncertain and challenging demand environment; however, we note that the transition period is one year," while Nomura analysts highlighted "Attrition under Ashiss will be a key monitorable, in our view."
