Infosys conservative, likely to defy its growth guidance

Current target of 3.5% for FY26 excludes expected revenue from an Australian acquisition

- Jas Bardia & Varun Sood

Salil Parekh, chief executive of Infosys.

(PT)

Infosys Ltd is likely to exceed its 3.5% growth target for the fiscal year, as its current projections exclude the expected revenue from a newly acquired Australian information technology firm.

On Wednesday, Infosys management clarified that its guidance to grow 3-3.5% in constant terms does not include the revenue from the Telstra acquisition. In August, Infosys spent $150 million to acquire a 75% stake in Versent, a Telstra-owned company, which generated $138 million in revenue for the year ended June 2025. Infosys planned to close the acquisition in the second half of the current fiscal.

"Strong year-to-date performance and robust deal wins have enabled us to revise our revenue guidance for FY26 upward to 3% to 3.5%. This does not include any revenues from the joint venture with Telstra, which still awaits the regulatory approvals," said Salil Parekh, chief executive of Infosys, during the company's post-earnings call with analysts on Wednesday.

This implies that the company might grow faster than expected, with one analyst expecting Infosys to keep pace with HCL Technologies Ltd.