Infosys is preparing to announce its Q3 results on Wednesday, January 14, with brokerages anticipating a seasonally soft quarter characterised by modest sequential growth and stable margins. India's second-largest IT services company faces headwinds from furloughs and fewer working days, though deal execution and cost optimisation initiatives are expected to provide some support.

Financial Performance Expectations

Four prominent brokerages project robust year-on-year growth for the December quarter, with estimates showing consistent optimism across key financial metrics.

Profit After Tax (PAT) Projections

Brokerages broadly expect high single-digit year-on-year profit growth, with sequential trends remaining largely flat across estimates.

Revenue Growth Forecasts

YES Securities estimates constant currency revenue growth at 1.40% year-on-year and 0.50% quarter-on-quarter, reflecting the seasonally weak nature of the quarter.

Margin and Profitability Outlook

EBITDA and EBIT projections show varied expectations across brokerages, with margin performance remaining a key focus area.

Operating Profit Estimates

Margin Performance

YES Securities projects EBITDA margin at 23.70%, remaining largely flat quarter-on-quarter. Axis Securities expects EBIT margin at 21.20%, down 18 basis points year-on-year but up 14 basis points quarter-on-quarter. HDFC Securities forecasts 21.00% margin, declining 36 basis points year-on-year and 4 basis points quarter-on-quarter. Axis Securities attributes sequential margin improvement to Infosys' cost optimisation initiative, Project Maximus.

Key Areas of Focus

The Street will closely monitor several critical aspects during the results announcement and management commentary.

FY26 Guidance Expectations

HDFC Securities expects Infosys to raise FY26 revenue growth guidance by 1% to 3-4%, while maintaining its margin band of 20-22%. ElaraCapital anticipates the company will retain its FY26 revenue guidance of 2-3%, noting a low ask rate of -1.50% to -0.20% for the next two quarters.

Strategic Monitoring Points

Investors should watch for updates on:

• Deal pipeline developments and execution progress
• Pace of deal ramp-ups across business segments
• Utilisation levels and resource optimisation
• Margin outlook amid cost management initiatives
• Client spending trends in the context of global macro uncertainty

The results will provide crucial insights into how India's second-largest IT services company is navigating seasonal challenges while positioning for future growth opportunities.

Infosys has announced the launch of 'Ally', an artificial intelligence-powered chatbot designed to revolutionize the tennis fan experience through its partnership with the Association of Tennis Professionals (ATP). This innovative technology solution represents a significant step forward in sports fan engagement and demonstrates Infosys's commitment to AI-driven solutions.

AI-Powered Fan Engagement Solution

The newly unveiled 'Ally' chatbot is specifically designed to enhance the overall experience for tennis fans by providing real-time insights and facilitating interactive conversations. This AI-powered solution aims to bridge the gap between fans and the sport, offering immediate access to information and creating more engaging interactions during tennis events.

Extended Partnership Through 2028

As part of this technological advancement, Infosys has extended its partnership with ATP through 2028. This extension underscores the successful collaboration between the technology giant and the professional tennis organization, highlighting their shared vision for innovation in sports technology.

Technology Features and Capabilities

The 'Ally' chatbot offers several key features designed to enhance fan engagement:

• Real-time insights during tennis matches and tournaments
• Interactive conversation capabilities for fan queries
• Enhanced accessibility to tennis-related information
• Improved overall fan experience through AI-powered interactions

Strategic Implications

This launch represents Infosys's continued focus on artificial intelligence applications in the sports industry. The partnership extension through 2028 provides a stable foundation for further technological innovations and demonstrates the company's long-term commitment to sports technology solutions. The 'Ally' chatbot positions Infosys as a leader in AI-driven fan engagement platforms within the professional sports sector.