India’s Infosys sees slowing revenue growth over global uncertainty

Indian tech giant Infosys forecast muted annual revenue growth on Thursday in an outlook that suggests clients might curtail tech spending because of growing global uncertainty.

The IT service firm said its revenue would either stay flat or grow by up to 3% in the fiscal year through March 2026 on a constant currency basis, below analyst estimates of growth of 2-4%.

The sales forecast was also lower than the 4.2% constant-currency revenue growth that Infosys recorded in the previous financial year.

Infosys, India’s second-largest software services exporter, earns more than 80% of its revenue from Western markets.

Like many of its rivals, it had anticipated a revival in demand in 2025 after grappling with a growth slowdown for most of 2024.

However, lingering weakness in client spending and U.S. President Donald Trump’s chaotic trade policies have clouded the IT sector’s growth outlook.

While Trump’s tariffs don’t directly affect India’s IT firms, trade tensions would hurt companies around the world and make them more hesitant to spend on big tech projects.

Chief Executive Salil Parekh told a news briefing the environment was “uncertain” and the company would execute its plans with “agility,” while keeping a “close watch on changes.”

Infosys Chief Financial Officer Jayesh Sanghrajka said the lower end of the sales forecast, which implies flat revenue, factored in “increasing” uncertainty but added that it was difficult to break down the impact of factors that included Trump’s tariffs.

The firm’s muted forecast echoes similar warnings made by rivals TCS and Wipro over the past week.

Infosys also reported its March quarter results on Thursday, posting an 11.75% year-on-year drop in net profit to 70.3 billion rupees ($823.5 million).

Analysts had on average projected a bottom line of 66.98 billion rupees.

The company’s revenue for the three months ended March 31 rose 7.9% to 409.25 billion rupees.

© 2025 AFP