Infosys Limited has announced the completion of a merger between two of its wholly owned step-down subsidiaries in Romania. The IT services giant informed stock exchanges about this corporate restructuring development on January 15, 2026.

Merger Details

The merger involved two Romanian entities under the Infosys umbrella. The transaction was completed on January 8, 2026, though the company received official confirmation of the completion on January 14, 2026. The merged entity now operates under the name In-tech Engineering S.R.L.

Regulatory Compliance

The announcement was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Infosys had previously communicated about this merger process in a letter dated December 5, 2025, indicating this was a planned corporate restructuring activity.

The company has notified multiple stock exchanges about this development, including BSE Limited, National Stock Exchange of India Limited, and New York Stock Exchange, ensuring comprehensive disclosure across all relevant trading platforms.

Corporate Structure Impact

The merger consolidates Infosys's Romanian operations under a single entity named In-tech Engineering S.R.L. This restructuring involves step-down subsidiaries, which are subsidiaries of Infosys's direct subsidiaries, representing a streamlining of the company's corporate structure in the Romanian market.

The information has been made available on the company's official website at www.infosys.com , ensuring transparency and accessibility for stakeholders and investors.

Infosys delivered impressive large deal momentum in the December quarter, achieving its highest total contract value in over two years despite facing margin pressures from regulatory changes. The IT services giant's performance reflects the broader industry trend of sustained order bookings and improving client adoption of AI technologies.

Strong Deal Pipeline Drives Growth

The company's large deal wins reached a nine-quarter high, demonstrating robust client demand and successful business development efforts.

This significant improvement in deal wins represents a substantial jump from the $2.4 billion to $2.8 billion range maintained over the past five quarters. The momentum was particularly driven by new deals, which formed 57% of the total contract value, indicating strong market expansion rather than just renewals.

Financial Performance Exceeds Expectations

Despite seasonal headwinds, Infosys managed to outperform analyst expectations on the revenue front while facing margin challenges from regulatory changes.

Revenue growth of 0.5% sequentially, while modest, exceeded analyst expectations and represented the company's ability to navigate seasonal weakness typically experienced during the December quarter due to holidays.

Labour Code Impact and Margin Analysis

The implementation of Indian labour code changes created a significant one-time impact on profitability, though underlying operational performance remained strong.

Excluding the labour code impact, operating margins actually expanded by 20 basis points from the previous quarter's 21%, indicating healthy underlying business performance. Management expects the ongoing annual impact to be around 15 basis points, which the company aims to offset through operational efficiencies.

Workforce Trends Show Positive Momentum

The company demonstrated strong talent retention and growth metrics, reflecting improved market conditions and organizational stability.

• Headcount Growth: Increased by 13,656 employees year-on-year to nearly 340,000
• Attrition Improvement: Decreased to 12.3% from 13.75% a year ago
• Industry Trend: Consistent with other top-tier IT companies showing workforce expansion

Raised Guidance Reflects Confidence

Infosys upgraded its FY26 constant currency revenue guidance to 3-3.5% growth from the previous 2-3% target, demonstrating increased confidence in business prospects. This represents a gradual improvement in outlook since the beginning of the fiscal year when the company had set a modest 0-3% growth guidance.

The performance aligns with broader industry trends, as peers including Tata Consultancy Services and HCL Tech also reported sustained order bookings and results that exceeded expectations, driven by improving client adoption of AI technologies.