Infosys Q4 Wraps a Bleak Week for India's IT Sector

Fewer jobs on cards for tech grads after TCS, Wipro too point to uncertainties

- Jas Bardia

Infosys Ltd on Thursday joined peers Tata Consultancy Services and Wipro Ltd in reporting disappointing earnings amid jitters in their key markets, signaling a potential hiring slowdown across the sector this year.

India's second biggest IT services company missed its revenue growth target for FY25 and slipped on profit, despite besting analyst estimates on both fronts. Infosys also projected its slowest growth for the fiscal at the start of the year in a decade.

The company ended FY25 with $19.28 billion in revenue, beating a Bloomberg poll estimate of $19.16 billion. But its 4.2% year-on-year revenue growth in constant currency terms (not taking currency fluctuations into account) missed its goal of 4.5-5% outlined in January 2025.

It also projected flat to 3% revenue growth for FY26 in constant currency terms, its weakest guidance since April 2009, when it had projected a revenue decline of 6.7-3.1% for FY10.

The company's performance and commentary mirror those of TCS and Wipro, India's largest and fourth-largest IT services companies. The two companies said earlier this week that clients had slowed decision-making and paused projects owing to the hazy macroeconomic environment.

Like TCS and Wipro, Infosys too avoided mention of hiring targets, with the management adopting a wait-and-watch approach. Headcount is a key determinant of the overall demand environment in the IT industry. Caution in hiring spells bad news for nearly 1.5 million students graduating from India's engineering colleges every year.

Infosys also followed TCS and Wipro in reporting a sequential decline in its fourth-quarter revenue.