Infosys Q3 Result Projections: Brokerages Give Their Estimates, All Details Here

Infosys is set to report a year-on-year revenue growth between 4.8% and 6.7%, estimates by five brokerages said. While the topline will range between ₹40,698-41,400 crore, net profit for Q3FY25 is likely to grow between 5.4% and 12% at ₹6,438 crore-6,840.

Estimates have been given by Nomura, HDFC Securities, Elara Capital, JM Financial and Motilal Oswal Financial Services (MOFSL). MOFSL has given the highest projections for revenue and profit after tax (PAT), while Elara has estimated the most conservative numbers.

Nomura, Motilal Oswal believe that Infosys can maintain its FY25 growth guidance at 3.75-4.5%, while HDFC Securities, JM and Kotak Institutional Equities can see an upward revision to 4.5-4.75%.

Investors should keep eye on commentaries regarding cost takeout projects, banking verticals, demand revival in developed markets and outlook on client discretionary spends.

Let’s look at what brokerages had to say

Nomura

The Japanese brokerage estimates a jump in the topline at 5.5% YoY for the quarter ended on December 31, 2024 at ₹40,941 crore. Sales can decline by 0.1% on a sequential basis.

EBIT margin can clock at 21.4%, which could go up by 90 bps on a YoY basis and 30 bps on a QoQ basis.

The company is expected to keep in pace with its FY25F revenue growth guidance of 3.75-4.5% and 3.5-5% YoY growth, respectively, in CC terms.

HDFC Securities

The company is likely to report sales at around ₹41,357 crore, up 6.5% YoY and 0.9% QoQ. Profit after tax (PAT) in the October-December quarter is estimated at ₹6,787 crore, an uptick of 11% YoY and 4.3% QoQ.

Earnings Before Interest and Taxes (EBIT) is set to surge by 10.8% YoY at ₹8,821 crore. EBIT margin could stand at 21.3%, an uptick of 82 bps YoY and 23 bps QoQ.

Elara Capital

Estimating a revenue growth of 4.8% YoY at ₹40,698 crore in Q3, adjusted PAT is seen at ₹6,438 crore, a fall of 1.1% QoQ. EBIT margin is clocked at 20.8%, a decline of 30 bps on a quarterly basis.

The brokerage said, “For Infosys, the ask rate to reach the lower/upper range of FY25 revenue guidance is (0.7%)/+0.25%, per our calculation in CC. Expect a CC / USD drop of 0.3%/1% QoQ, led by furloughs.”

JM Financial

JM Financial expects a topline of ₹41,236 crore, 6.2% YoY jump. Net profit is expected to be ₹6,769 crore, which could go up by 10.7% YoY and 4% QoQ.

In a note JM said, “We expect 90 bps QoQ cross-currency headwinds. We estimate c.130 bps impact of furloughs on Infosys. Besides furloughs, stabilisation in large deal ramps, which aided 1H growth, could restrict sequential growth. Lower transition costs associated with large deals could benefit margin, though lower growth will limit the extent of expansion. Expect Infosys to revise its guidance to 4%-4.5% YoY cc.”

Motilal Oswal

MOFSL expects a growth of 6.7% YoY at ₹41,400 crore. Adjusted PAT is set to clock at ₹6,840 crore, up by 11.9% YoY and 5.0% QoQ. EBIT margin is expected at 20.8%.

The brokerage said, “For Infosys, we expect margins to decline by 30 bps owing to furloughs and lower working days, offset by pricing gains, subcontractor cost optimization, and Project Maximus.”

It added, “We expect flow business to recover in CY25, aiding growth. Expect Infosys to maintain its guidance of 3.75% to 4.5% for the full year.”

The brokerage has a buy rating on Infosys with a target price of ₹2,250.