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Infosys first-quarter profit rises 8.7% year on year

Ana Mary Joseph
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Infosys first-quarter profit rises 8.7% year on year

Infosys, India’s IT services provider, reported its financial results for the first quarter of fiscal year 2026 with mixed but largely positive outcomes.

The company experienced a slight dip in net profit on a quarter-on-quarter (QoQ) basis, with profits declining by 1.61 per cent to Rs6,924 crore from Rs7,038 crore in the previous quarter.

Despite this marginal decrease, the year-on-year (YoY) performance showed encouraging growth, with net profit rising by 8.7 per cent compared to the same quarter last year. This reflects the underlying strength and resilience of Infosys amid fluctuating market conditions.

Revenue growth also painted a favourable picture, with the company reporting a 7.5 per cent increase YoY to Rs42,279 crore. Sequentially, revenue was up by 3.3 per cent from Rs40,925 crore, illustrating consistent business expansion.

Expenses saw a slight uptick

The improvement in revenue was supported by a gross profit increase to Rs13,055 crore, compared to Rs12,138 crore in the year-ago quarter. However, total expenses saw a slight uptick to Rs33,581 crore from Rs32,452 crore in the previous quarter, putting some pressure on overall profitability.

In response to these results, Infosys revised its full-year FY26 revenue growth guidance to a range of 1-3 per cent in constant currency, notably raising the lower end of the forecast. This adjustment signals cautious optimism and confidence in sustaining growth momentum despite global economic uncertainties.

CEO and Managing Director Salil Parekh highlighted the company’s strengths, notably in enterprise artificial intelligence, client consolidation efforts, and the commitment of over 300,000 employees.

These factors have contributed to winning large deals worth $3.8 billion during the quarter, with over half of these wins coming from new clients, thereby reinforcing Infosys’ strong foothold in the competitive global IT services market.

Strong free cash flow

From an operational perspective, Infosys reported operating margins of 20.8 per cent, which showed a modest decline of 0.3 per cent YoY and 0.2 per cent QoQ. Despite this slight erosion, the company expressed confidence in maintaining operating margins within the target range of 20 to 22 per cent throughout FY26.

Sector-wise, financial services remained the fastest-growing vertical with a 5.6 per cent increase in constant currency terms. Manufacturing also delivered robust performance, growing by 12.2 per cent, while retail and hi-tech sectors showed modest gains.

Conversely, life sciences experienced a contraction of 7.9 per cent, and other segments faced a sharper decline of 15.3 per cent, indicating some challenges in diversification.

A noteworthy highlight was Infosys’ strong free cash flow of $884 million, with cash flow conversion exceeding 100 per cent for the fifth consecutive quarter.

This demonstrates the company’s effective cash management and operational efficiency. CFO Jayesh Sanghrajka attributed this success partly to a proactive hedging strategy that managed currency volatility well, a critical factor given the global exposure of the company.

On the human resources front, the company reported a slight increase in voluntary attrition to 14.4 per cent, up from 14.1 per cent in the previous quarter, and 12.7 per cent a year earlier.

Despite this, the workforce expanded by 8,456 employees year-on-year, reaching a total strength of 323,788 at the end of June 2025. This net addition of 210 employees during the quarter underscores Infosys’ continued focus on talent acquisition and retention.

The market’s response was muted, with shares closing 0.8 per cent lower at Rs1,558.9 on the National Stock Exchange ahead of the earnings announcement.

This reaction could be attributed to the slight QoQ dip in profitability and margin pressure, balanced against steady revenue growth and strong deal wins.

Altman says AI will eliminate most employment sectors

Naushad K. Cherrayil
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Altman says AI will eliminate most employment sectors
  • His steadfast advocacy for the transformative potential of AI spotlights both the revolutionary benefits and the significant challenges that lie ahead.
  • The potential for AI to “totally” eliminate entire employment sectors raises urgent questions about economic displacement, social equity, and the future of work.

Sam Altman, the CEO of OpenAI, continues to project a vision of a future profoundly shaped by artificial intelligence, where AI systems dominate various sectors, reshape the labour market, and influence global leadership.

His recent remarks at the Capital Framework for Large Banks conference at the Federal Reserve Board of Governors in Washington reiterated long-standing predictions about the transformative power of AI, stirring both intrigue and scepticism among industry observers.

Altman has established himself as a prominent, albeit controversial, prophet of AI’s potential. Despite criticism and ridicule from segments of the tech community and beyond, he persists in articulating a future where AI drives unprecedented changes in employment and service delivery.

Exceeding human capabilities

A central theme of his discourse is the displacement of certain job categories, particularly roles in customer support.

Altman confidently proclaimed that AI has already supplanted human involvement in many customer service interactions, describing AI as a “super-smart, capable person” that answers calls seamlessly, without the frustrations traditionally associated with phone trees or transfers. This characterisation underscores his belief that AI systems not only match but exceed human capabilities in efficiency and accuracy in these domains.

Healthcare is another focal point in Altman’s vision of AI’s ascendancy. He highlighted the recent announcement by Microsoft of an AI diagnostic system purportedly superior to human doctors in identifying complex health conditions.

Altman expressed optimism that AI tools like ChatGPT can function as highly effective diagnosticians, ostensibly better than most human practitioners worldwide. However, he tempered this claim with caution, acknowledging the importance of human oversight.

Studies have demonstrated that AI chatbots remain vulnerable to manipulation, sometimes disseminating false or misleading medical advice with a veneer of credibility. Altman’s acknowledgment of these limitations reflects an awareness of the ethical and practical challenges inherent in deploying AI in critical fields such as medicine.

Intensifying competition

The narrative of AI’s rapid progress and its impact on talent mobility within the tech sector further complicates the landscape. OpenAI has recently experienced a notable exodus of top researchers to Meta, Mark Zuckerberg’s tech conglomerate, which is channeling resources into its AI superintelligence initiative known as Meta Superintelligence Labs.

This shift indicates the intensifying competition among leading firms to dominate the next frontier of AI development, underscoring the strategic importance and high stakes of AI innovation.

Altman’s vision is compelling for its ambitious scope, yet it is also fraught with complexities and contentious implications. The potential for AI to “totally” eliminate entire employment sectors raises urgent questions about economic displacement, social equity, and the future of work.

Meanwhile, the prospect of AI systems advising or even directing heads of state gestures toward a profound shift in governance and decision-making processes, inviting debate about authority, accountability, and human agency.

Space42 gets $695.5m financing facility for next-gen geostationary satellites

Naushad K. Cherrayil
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Space42 gets $695.5m financing facility for next-gen geostationary satellites
  • Company is well-positioned to address the growing demand for secure, reliable connectivity solutions that are vital to both defense and civil operations.
  • Satellites are set to provide extensive coverage across the Middle East, Africa, Europe, and Asia, ensuring uninterrupted, multi-path connectivity critical for mission-essential applications.

The UAE-based and AI -powered SpaceTech company- Space42 – has announced a significant milestone in its expansion strategy with the signing of a $695.5 million financing facility, backed by Export Credit Agencies (ECAs), aimed at advancing the development of its next-generation geostationary satellites, Al Yah 4 and Al Yah 5.

The financial arrangement underscores the company’s commitment to enhancing critical connectivity infrastructure across multiple orbits, a move that is poised to redefine secure communication capabilities on a global scale.

The financing facility, arranged by prominent financial institutions including Credit Agricole CIB, Santander CIB, Societe Generale, and Natixis, and supported by Bpifrance Assurance Export, reflects a growing confidence among leading international banks in Space42’s strategic vision and operational expertise.

Scheduled for launch in 2027 and 2028, these satellites represent a pivotal investment in technology that promises to deliver long-term benefits for both defense and civil sectors.

From a financial perspective, the facility offers Space42 cost-effective, long-term funding that aligns seamlessly with the timelines for satellite development. The arrangement not only enhances the company’s liquidity but also ensures the financial flexibility needed to pursue further growth and innovation within a highly competitive industry.

Andrew Cole, Chief Financial Officer of Space42, emphasised the importance of this funding structure, noting that it optimises the cost of capital and supports the execution of the company’s ambitious growth agenda.

He highlighted that the Al Yah 4 and Al Yah 5 program is backed by a 17-year, $5.1 billion government contract starting in 2026, underscoring the strategic significance of this initiative.

Technologically, Al Yah 4 and Al Yah 5 embody the next frontier in satellite design, featuring a software-defined architecture with fully flexible payloads that can be reconfigured while in orbit.

The advanced capability facilitates real-time optimisation of coverage, bandwidth, and frequency allocation, thereby enhancing operational adaptability to meet evolving connectivity demands.

The satellites are set to provide extensive coverage across the Middle East, Africa, Europe, and Asia, ensuring uninterrupted, multi-path connectivity critical for mission-essential applications.

Moreover, these satellites will serve as successors to Al Yah 1 and Al Yah 2, which were launched over a decade ago. By complementing and eventually replacing these earlier models, Al Yah 4 and Al Yah 5 will elevate Space42’s service offerings, reinforcing its status as a leader in secure satellite communications.

About 1.9m EVs benefit from FAME schemes in India

TCN Bureau
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About 1.9m EVs benefit from FAME schemes in India
  • Under FAME-I, the government supported 255,305 electric vehicles and 1,629,600 vehicles under FAME-II.

The Indian government’s concerted efforts to promote electric vehicles (EVs) through the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME India) schemes mark a significant stride toward sustainable transportation and environmental preservation.

As of June 30 this year, a total of 1,884,905 electric vehicles have benefitted from government support under these schemes, underscoring the commitment to accelerating the adoption of cleaner automotive technologies.

The FAME initiative, launched in two phases—FAME-I (2015-2019) and FAME-II (2019-2024)—has played a crucial role in fostering the EV ecosystem across the country, including Tier 2 and Tier 3 cities. Under FAME-I, the government supported 255,305 electric vehicles, alongside allocating Rs43 crore to establish approximately 520 charging stations, laying the groundwork for EV infrastructure development.

A robust push

The subsequent FAME-II phase has seen an even greater scale of support, with 1,629,600 vehicles sanctioned and a focused investment of Rs912.50 crore for installing 9,332 electric vehicle public charging stations (EV PCS), of which nearly 8,885 have already been operationalised.

The expansion reflects a robust push towards addressing range anxiety and enhancing convenience for EV users.

Beyond direct subsidies and infrastructure augmentation, the FAME-II scheme has outlined comprehensive objectives aimed at fostering a self-sustaining and globally competitive electric mobility sector.

 It emphasises stimulating market demand, galvanising domestic technological innovation for EV components, and promoting the manufacturing of zero-emission and hybrid vehicles within India.

These objectives align closely with the nation’s broader environmental responsibilities, notably its commitments under the COP 21 agreement to transition toward a low-emission economy.

Integral to this vision is the National Electric Mobility Mission Plan (NEMMP) 2020, which provides the strategic framework for the accelerated adoption and domestic manufacturing of electric vehicles.

Through the NEMMP and its flagship FAME India scheme, the Ministry of Heavy Industries has orchestrated a multi-faceted approach that encompasses demand creation, infrastructure development, technology nurturing, and industry competitiveness.

Amazon wants to make AI truly personal with Bee acquisition

Ana Mary Joseph
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Amazon wants to make AI truly personal with Bee acquisition
  • By enhancing users’ abilities to manage conversations and tasks through intelligent wearables, Amazon continues to push the envelope at the intersection of technology, privacy, and user empowerment.

Amazon has reached an agreement to acquire Bee, a San Francisco-based startup specialising in artificial intelligence-enabled wearable technology, to embed AI more deeply into everyday user experiences through wearable devices.

Bee’s innovative wristband, retailing at approximately $50, utilises advanced AI to listen to and transcribe conversations, subsequently analysing the recorded data to generate concise summaries, to-do lists, and other productivity tools.

Amazon’s confirmation of the deal, following a LinkedIn announcement by Bee’s CEO Maria de Lourdes Zollo, comes at a time when Amazon is actively expanding its footprint in the realm of wearables and AI-powered consumer products.

Past initiatives, such as the Halo wrist health trackers, demonstrated Amazon’s willingness to innovate in this space, though the Halo project was ultimately discontinued in 2023.

Nevertheless, Amazon continues to harness AI through other platforms, such as its Echo smart glasses embedded with the virtual assistant Alexa, illustrating its commitment to integrating AI capabilities into versatile, user-friendly devices.

Amazon’s broader strategy

The acquisition also highlights the competitive dynamics among tech giants seeking to lead in AI development. OpenAI, for example, recently acquired former Apple designer Jony Ive’s AI device startup for an estimated $6.5 billion, indicating a robust market for AI wearables and related technologies.

While early ventures into AI wearables have experienced mixed success, the convergence of AI software with wearable hardware promises new opportunities for enhancing productivity and personal management in daily life.

Bee’s AI wristband represents an important fusion of hardware and artificial intelligence, aiming to offer users seamless assistance by capturing and distilling spoken interactions in real time.

The device is designed to automatically transcribe audio, although users maintain control over the recording process, including the option to mute the device.

The emphasis on user privacy and control is particularly relevant in light of growing concerns about the ethical use of AI and the protection of personal data in intimate settings.

Bee, founded only in 2022, is poised to join Amazon’s devices group under the leadership of Panos Panay upon the deal’s closure. The move aligns with Amazon’s broader strategy to leverage its Amazon Web Services (AWS) infrastructure to drive AI innovation across its product portfolio.

The symbiotic relationship between AWS’s computational capabilities and Bee’s AI technology is likely to accelerate the development and refinement of AI-enhanced wearables.

Paytm swings to profit on cost discipline and innovation

TCN Bureau
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Paytm swings to profit on cost discipline and innovation
  • Reaffirms its commitment to strengthening its full-stack offerings and empowering merchants.

Paytm (One 97 Communications Limited) swings to profit  for the first time since September 2024 with  Rs123 crore in the quarter ended on June 30, accompanied by a substantial 28 per cent year-on-year (YoY) growth in operating revenue, reaching Rs1,918 crore.

It had last posted a profit in the September 2024 quarter due to a one-time gain from the sale of its ticketing business.

The performance underscores Paytm’s strategic focus on scalability, efficiency, and innovation within the dynamic digital payments ecosystem catering to micro, small, and medium enterprises (MSMEs) and enterprises across India.

A notable highlight in the company’s financials is the Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of Rs72 crore for the quarter ending June 2025.

The figure reflects Paytm’s disciplined approach in managing cost structures while leveraging embedded artificial intelligence (AI) capabilities to drive growth and operational efficiency. Such integration of technology highlights the evolving landscape of fintech companies that prioritise automation and intelligent solutions to sustain competitive advantage and improve service delivery.

The company’s contribution profit surged by 52 per cent YoY to Rs1,151 crore. This significant rise can be attributed to an improvement in net revenue, a higher proportion of financial services revenue distribution, and reduced direct expenses.

Particularly, the revenue derived from the distribution of financial services doubled to Rs561 crore YoY, marking a pivotal growth area for Paytm. This surge not only diversifies Paytm’s revenue streams but also strengthens its position as a comprehensive financial services provider.

Paytm has successfully maintained and expanded its leadership role in India’s merchant payments sector, with total device subscriptions reaching an unprecedented 1.30 crore as of June 2025.

The growth is indicative of the sustained demand for Paytm’s diverse hardware offerings such as Soundbox, All-in-One Point of Sale (POS), and card-enabled payment devices. These devices are augmented by high-quality service and a resilient, retention-focused distribution network, which collectively enhance merchant engagement and satisfaction.

Distinguishing itself further, Paytm operates as India’s first and only AI-powered omni-channel payments platform. It offers a seamless end-to-end payments technology stack that integrates hardware, software, and services, setting new standards in convenience and functionality.

The company’s rapid ascendance in offline enterprise payments within merely six years, eclipsing the traditional capital expenditure-driven POS provider model, testifies to its innovative business model and market responsiveness.

Furthermore, Paytm benefits from a strong cash reserve of Rs12,872 crore, positioning it to effectively scale its operations in merchant payments, financial services distribution, and AI-powered technological advances.

The financial solidity not only supports ongoing innovation but also empowers the company to explore new growth avenues while reinforcing its foundational services.

In its official communications, Paytm has reaffirmed its commitment to strengthening its full-stack offerings and empowering merchants. The company’s vision centers on providing scalable, secure, and inclusive digital tools designed to foster sustainable, long-term growth for India’s diverse merchant ecosystem.

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