..... . VALI disclosures . .....: 14/01/26, Infosys Q3 results: IT major Infosys on Wednesday, January 14, reported a 2.2% year-on-year (YoY) drop in consolidated profit at ₹6,654 crore for the December quarter of the current financial year (Q3FY26).

Wednesday, January 14, 2026

14/01/26, Infosys Q3 results: IT major Infosys on Wednesday, January 14, reported a 2.2% year-on-year (YoY) drop in consolidated profit at ₹6,654 crore for the December quarter of the current financial year (Q3FY26).

In the same quarter last year, the company's profit was ₹6,806 crore.

However, consolidated revenue during the quarter rose 8.9% YoY to ₹45,479 crore from ₹41,764 crore in the same quarter last year.

Infosys highlighted the impact of ₹1,289 crore on its earnings due to the new labour codes.

"The adjustments for Labour Codes, notified by the Government of India on November 21, 2025, caused an increase in gratuity liability arising out of past service cost and an increase in leave liability, together by $143 million ( ₹1,289 crore), which is recognised in the consolidated statement of comprehensive income," said Infosys.

Infosys Q3 earnings: Key highlights

Let's take a look at the five key highlights from Infosys' Q3 scorecard:

1. Revenue and profitability

In constant currency (CC), the company's revenue grew by 1.7% YoY and 0.6% quarter-on-quarter (QoQ).

In USD, Infosys' revenue stood at $5,099 million for Q3FY26, up 3.2% from $4,939 million in Q3FY25. Sequentially, revenue rose 0.5% in dollar terms.

Net profit (after non-controlling interests) declined 7.2% YoY and 11% QoQ to $747 million.

Operating profit fell 11% YoY and 12% QoQ to $937 million, while operating margin dropped 2.9% YoY and 2.6% QoQ to 18.4%.

"Infosys delivered a strong Q3 performance, demonstrating how our differentiated value propositions in enterprise AI, through Infosys Topaz, are consistently driving higher market share. Clients increasingly view Infosys as their AI partner with demonstrated expertise, innovation capabilities and strong delivery credentials. This has helped them unlock business potential and enhanced value realisation," said Salil Parekh, CEO and MD, Infosys.

2. FY26 guidance

Infosys slightly increased its revenue guidance but maintained its margin guidance for FY26.

Infosys expects revenue growth of 3-3.5% in constant currency compared to 2-3 per cent estimated earlier. Operating margin is projected to be in the range of 20-22% in FY26.

Operating margin guidance for FY26 excludes the adjustment with respect to Labour Codes of ₹1,289 crore in the current quarter.

3. Segments, geographical performance

Revenue from the financial services segment increased by 3.9% YoY in CC terms. Communication (up 9.9% YoY) and manufacturing (up 6.6% YoY) also clocked healthy growth in CC terms.

However, revenues from life sciences (-5.4% YoY) and retail (-5.5% YoY) declined significantly. Revenue from the hi-tech segment also shrank by 2.2% YoY, while that of the "others" segment dropped 9.3% YoY.

Among key geographies, revenues from the North American market dropped by 1% in CC. The Indian market also shrank by 1.8% YoY.

However, revenues from Europe grew by 7.2% YoY, and that of the "rest of the world" also rose by 2.5% YoY in CC.

4. Deal TCV

Infosys said its large deal TCV (total contract value) stood at $4.8 billion in Q3, compared to $3.1 billion in Q2, and $3.8 billion in Q1FY26.

Out of the total deal TCV in the quarter, 57% was net new.

5. Employee metrics

The last-twelve-month voluntary attrition in the IT services was 12.3% in Q3FY26 compared to 13.7% in Q3FY25 and 14.3% in Q2FY26.

The total number of employees stood at 3,37,034 by the end of the December quarter against 3,31,991 by the end of the September quarter. This translates to an addition of 5,043 employees during the December quarter.

source: Mint

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

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..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

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Wednesday, January 14, 2026

14/01/26, Infosys Q3 results: IT major Infosys on Wednesday, January 14, reported a 2.2% year-on-year (YoY) drop in consolidated profit at ₹6,654 crore for the December quarter of the current financial year (Q3FY26).

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Today's

14/01/26, The Indian benchmark indices, SENSEX and NIFTY50, closed in negative territory on Wednesday, January 14, for the second consecutive session, amid selling in IT and realty stocks.

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