Infosys Limited American Depositary Shares

Ladies and gentlemen, good day and welcome to Enforcers Limited Q1 FI26 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-down phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sandeep Mahindra. Thank you, and over to Mr. Mahindra.

Hello, everyone, and welcome to Infosys earnings call for the first quarter of FY26. Joining us on this call is CEO and MD, Mr. Salil Parekh, CFO, Mr. Jayasang Rajka, and other members of the leadership team. We'll start the call with some remarks on the performance of the company. Subsequently, we'll open up the call for questions. Please note that anything we say that refers to our outlook for the future is a forward-looking statement, which must be read in conjunction with the risks that the company faces. A complete statement explanation of these risks is available in our filings with SEC, which can be found on www.sec.gov. I'd now like to pass on the call to Salil.

Thanks, Sandeep. Good evening and good morning to all of you. Thank you for joining us. We had a strong start to a financial year. Our revenues grew 2.6% sequentially and 3.8% year-on-year in constant currency terms. Growth was broad-based with our large five industry groups and our large geographies growing year-on-year in constant currency. Our large deals were at $3.8 billion. Our operating margin was 20.8% and our free cash flow was at $884 million. The main drivers of our growth were our leadership in enterprise AI and our continued success in clients selecting us for consolidation. We are seeing good demand for AI agents. We built 300 agents across business, operations, and IT areas. Our horizontal and vertical agents are helping our clients drive faster decisions, improve customer experience, and improve operational efficiency. Let me share with you some examples of where we're doing project work on enterprise AI for our clients. And oil and gas majors using Infosys AI agents to enhance production quality in their refinery, orchestrate dynamic pricing in their retail stores, and automate their contract management system for efficient trading. A leading global manufacturing company is using Infosys AI agents across their supply chain to unlock productivity and cost benefits, and using Infosys AI agents to efficiently resolve issues related to malfunctioning equipment. A logistic company is using Infosys AI agents to transform customer care, operations and logistics, and finance and accounting to become more efficient. For a leading North American retailer, we are transforming in-store shopping into a frictionless data-driven experience, boosting customer satisfaction, loyalty, and operational efficiency. This is being done by integrating physical AI through intelligent automation and edge-based computer vision. A global financial services company is using Infosys Enterprise AI solution with a fine-tuned large language model. This system translates code and automates documentation. The solution increased developer productivity by 25% and automated 50% of business requirement creation in support of the modernization plan. Building on 19 leadership ratings we received in financial year 2025, we are now positioned additionally as leaders in Gartner's first generative AI consulting and implement services quadrant. We are the only large India-based technology services company to be positioned as a leader. Based on our performance in Q1 and our current outlook, Our guidance for growth for financial year 2026 is revised from the earlier guidance of 0% to 3%. Now, it's 1% to 3% growth in constant currency terms. Our margin guidance remains unchanged at 20% to 22%. With that, I'd like to invite Jayesh to share his comments. Thank you, Saran.