Infosys opens new Hyderabad campus block but cuts revenue growth forecast

what happened

Infosys has opened a new 1.1 million sq ft software development block at its Pocharam campus in Hyderabad. The building adds 10,000 seats and allows the company to accommodate more than 13,000 employees under a hybrid model. According to Moody's, which cites PTI, the inauguration was attended by Telangana's Deputy Chief Minister and the state IT minister.

The opening came alongside quarterly results. Consolidated net profit for the September quarter rose 6.2% year on year to Rs 7,823 crore, and revenue climbed 10.2% to Rs 49,244 crore. However, the company lowered its constant-currency revenue growth guidance to 1% to 2% from 1.5% to 3%, attributing the change to pricing pressures. Operating margin held at 21%, and large deals worth $5.2 billion were signed during the quarter.

why it matters

The key signal for markets is not the new building but the lower revenue outlook amid pricing pressure. Investors will watch whether the company can protect margins and how quickly large contracts turn into revenue. For India's IT services sector, the update is a useful gauge of demand and pricing.

market impact

Infosys shares and India's IT sector index: the lowered outlook weighs on revenue growth expectations

• ▼Infosys shares pressure down — lowered revenue growth outlook due to pricing pressures

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instruments