Infosys AGM 2026 LIVE | AI, Cloud, IT Services & Digital Transformation Roadmap | Infosys LIVE

Good evening. Hi, I'm Sal, CEO and managing director joining in from Mumbai. Welcome to the 45th annual general meeting. I hope all of you are well. Sundaram,

Thank you Nandan. Good evening shareholders and welcome to the annual general meeting. Over the next few minutes I will share with you some of the highlights of the financial year and what we are looking at as we go ahead. As we look at the next slide, the safe harbor provision. Then the next slide. Financial year 2026 was a strong year for us. First we had a revenue of over $20 billion. Constant currency growth was 3.1% adjusted operating margin of 21%. Very strong free cash flow. Employees now at over 325,000 across the world. One of the key elements there was that we recruited 20,000 college graduates across India and in some other parts of the world as we continue to scale in this new environment as we do more and more work within AI. Our clients with revenues of over $100 million were at 41 as we close the year. As we look at the next slide to look at the financial performance, we have shared this in this slide in rupees. In many of the areas we had a nice positive movement from the last year. In terms of cash flow, we had a positive movement which was reflected after you adjust for some of the tax refunds that we got in the previous financial year. As we look at the next slide, we have now returned over 55,000 crore over the past two years through the capital return policy, both in the manner of dividends and also with the buyback that we completed. This continues with the approach we have for our capital return policy which will be across a block of five-year period where we return 85% of our free cash flow. Our balance sheet remains extremely strong. It's debt-free. In fact, it's very liquid with a strong balance of cash and cash investments which we continue to maintain even as we provide the capital return to shareholders and we continue with some acquisitions. As we look at the next slide, one of the most critical areas we have focused on in this past year has been to launch our AI approach within the market. Internally, we've been working on this for a number of years. We have built internally something which we refer to as Topaz and fabric which allows us to make very strong AI capabilities available to our clients in partnership with AI companies. As you look at the next slide, this is the approach that talks about how we go to market with all of that AI capability. We have seen today there are six broad areas in which clients are looking to use AI to improve their business for growth or improve their business in terms of the quality service levels or improve their business in terms of efficiency and cost. The first area refers to AI engineering and strategy where we build agents across different platforms and tools. The second to data which is the critical element of putting AI together. The third is process where a lot of new work is being done to first make the process more efficient and then use agents to make that process work better. The fourth is really modernization of technology using agents. This we see as one of the largest areas today that our clients are looking to Infosys to help them with. The fifth is the physical AI which is you look at real AI in manufacturing and put the software into those manufacturing elements where the products are there whether it could be in medical, automotive or any of the other areas. And the sixth is the AI trust where we look at how do you make sure that it is secure and is also responsible AI. And when we look at this as a collective group we see that this is approximately $300 billion of addressable market overall in those six areas from today onto 2030. So over the next five years and that's what gives us a real focus on how we drive the growth there. In this slide, we show what are the different clients that we are working with in each of those six buckets today. So these are actual projects. These are not proof of concept. They are large scale programs which our clients are trusting Infosys with to make sure that we deliver this sort of work for them today. On the next slide, we talk about as an overall journey, how are we helping our clients to move from where they are today to the future which is really very much AI-driven because we have this really deep understanding of their environment. What is in a client environment? What is in a large enterprise environment? How is the technology set up? How does it interact with the business? What is the architecture landscape? What is the data landscape? That domain knowledge is really the value that we are bringing and which is why we are seeing a strong connect that our clients are having with us to make the AI successful. We also have extremely good engineering talent. We have shifted a lot of our training onto the AI training and we have more and more of our employees ready and certified on the different foundation models, coding tools, compute platforms that are available for the AI and then we have built our own platform and IP which is the Topaz fabric which allows us to work with any AI foundation model for the benefit of the client. In doing that, we built a very strong partner ecosystem. So all of the big AI foundation model companies, the compute companies are working with Infosys very closely to make it available for the clients based on what the situation is, which industry, what type of work, different foundation models become relevant for that. And we have a very strong partnership approach to driving that. As we look in the next slide here in Q3 of last year, we had shared this data that approximately 5.5% of our revenue was in AI services which is approximately $1 billion annualized and this is growing at a quite fast pace. We had given that when we shared it in Q3. So we reconfirm that that is how we are driving this and we continue to see good growth in this AI services revenue. And then on the next slide we show that also on the thought leadership meaning how is the analyst community looking at Infosys in any of the groupings. There are 16 areas across these six buckets where we have the leadership rating for AI which Infosys is being recognized for. Then move on the next there are two big foundational elements of AI. The first is the cloud and here we have built Cobalt over many years and we have a very good first capability, then partnership and then the ability to use the cloud compute platform to make sure that the AI is working well and make sure that the migration is working well. A lot of the different foundation models are working on multiple cloud platforms and that's where the strength comes of Infosys having had that skill and capability from a long time. And the second is the data. As you look at this slide, there is data within the enterprise which is structured, which is unstructured. How can we make all of that become available for the AI model? Because the value for a large enterprise is to take its own data and make it populated in the model so that it becomes more intelligence for the company to benefit, for the enterprise to benefit. And we then ensure that the data is also secure and trusted so that it's not something that the enterprise may feel not dependent upon and so they can continue with the differentiation which is coming from their own knowledge, their internal data and knowledge that comes together and then we are now bringing or enterprises are bringing customer and supplier data also in addition to their own which is enhancing how the models are working within large enterprises. Then as we look inside the company a little bit, we have been focused very much over the last several years on our own efficiency because we want to maintain and as you saw in the previous financial year, we increased our operating margin. We want to make sure despite the environment outside we want to have a very strong operating approach and there we have driven a lot of the cost efficiency with the automation, with the pyramid, with the productivity where we are ourselves using the AI in many places for example in finance, in marketing, all of our internal functions, of course in coding as well which is giving us productivity benefits, then improving some certain portfolio elements and then reducing our indirect cost to make sure that we have the foundation for a good profitability. The strength of Infosys really comes which I've always felt from a very much leading delivery organization where we have excellent training and very well driven teams that make sure that what we're committing to our clients we are able to deliver. And now more and more in multi-service offerings in complex programs where there's a lot of trust from our clients and now in these six new areas of the AI where we put even more attention and focus. Then on the brand we have done I think quite well where a brand is recognized more associated on AI top three most valuable brand globally, one of the fastest growing IT services brands, top 100 of any brands in the world in the last financial year and good perception with AI for Topaz and for cloud with Cobalt. Then we also took some time at the acquisitions we had finished a few in the financial year, a couple of them got done just after the financial year but before today. One was on healthcare side, one was on the insurance side. So we want to make sure in the areas where we see a good opportunity and where we can scale up, we're doing more and more of those type of acquisitions which we are then able to integrate into our business quite well. Then we wanted to share a little bit with how we are working across all the communities we are a part of. We have created a lot of impact within India with the contributions the company's making, 200 projects, 7 million people, with Springboard which is a training online capability which we provide for free, over 10 million people worldwide have benefited and one example where we have worked with making sure that the water capacity in lakes within different parts of India is enhanced by providing sustainable solutions. All of this comes within the area of supporting the communities in the CSR work we are doing. One of the biggest difference ways we are approaching the market is how we work internally as one Infosys whether it's with the service lines, in the industries, in the geographies, making sure that the best capability of Infosys is available to every client and all of the teams inside are continuing to work well together. In conclusion, I would say it was a strong execution on the financial year. We have a good AI approach and strategy and already starting the execution. We already see approximately annualized $1 billion of AI services revenue that we shared in Q3 and growing at a very good pace. Very strong AI partnerships. The foundation model companies are also approaching us and we are working strongly with them. A good stable organization, the one Infosys, and a continued trust of our clients. So with that I will conclude. Thank you once again for all your faith and trust in us and we look forward to the coming year to be more and more AI-driven into the future. Thank you.

Thanks Nandan. There are a few questions I have from the web chat part and then as Nandan mentioned we'll come later to the video and audio part. First question is from Shamala Rao Pichuka. What are the future plans of Infosys? Is there any new projects for the upcoming year? So here the big plans for us as we look ahead in the financial year 27 and even beyond is in the AI services area. We continue to see outside of that comparative intensity and also the productivity impact on the revenues. With all that put together, we have given a guidance of 1.5 to 3.5% growth for the full year when we gave the guidance in the April results. For the long term, we are extremely enthusiastic about the AI services opportunities. What we shared earlier of the six big areas of AI services that we see the building of the agents or the modernization or looking at data and others and that's an opportunity of around 300 billion of addressable spend going into the year 2030. Second question is from Navinta Krishna Dhanapati and also Nitya Ma similar question given the rapid evolution of AI particularly agentic AI capabilities could the board elaborate on the company's strategic road map for leveraging these technologies and how they expect to drive productivity cost optimization and long-term competitive advantage. Additionally, how is the board benchmarking our AI maturity and adoption against industry peers and what metrics are being used? What we had shared in Q3 around the time just after Q3 the data for Q3 was AI services is coming up with 5.5% of our revenue at that stage. Then we look at some other metrics. 90% of our employees are AI aware. We also mentioned that of the 200 largest clients again 90% of where we do work which is related to AI using Topaz using fabric. We're currently working on over 4,800 AI projects and we built over 600 agents. We're also scaling up a team which is of forward deployed engineers which team then works very closely with clients on making sure that AI is deployed into those client activities. We also have very good partnerships with foundation model companies with tool companies and with compute companies across the entire AI ecosystem. And all of this then gets reflected in about 16 leadership rankings that we have within the AI ranking approach of all the analysts. Next question is from Shinasa Rao Kilaru. Dear sir, many analysts say that Indian IT companies are just service companies. They do not cater for R&D. Indian IT companies just distribute cash and dividend through buyback and Indian IT companies are not investing in meaningful research. What do you say about Infosys in this regard? What is the future vision of the Infosys management where Infosys may lead in the next five or 10 years? Here we have a very structured approach in terms of innovation where we have a center for emerging technology and solutions. A lot of the new technologies of AI in fact previously machine learning digital cloud and today also new technologies of quantum are being incubated in this group and that's where we see the earliest use. As a company what we do is we take the new technology that are coming and we build the capabilities in skilling our people and then deploy them onto large clients so that deployment becomes easier for our clients to use. We have also created something called the Infosys living labs which is a global innovation hubs with clients and partners and sometimes even startups and academic institutions where we can jointly develop some of the technologies. For example, on AI, we have a lead joint work with a leading university in the UK, a leading university in the US where we are doing big innovation work on AI innovation. Then we're doing work which is ensuring that what we distribute through a dividend or buyback is based on the capital return or capital allocation policy of the company that is being described. Question next question is from Sudhir Dull Sha. What is the strategy the company for the development in Gujarat? So what we have done across India is we've had many innovation hubs, nearshore centers, digital design studios and partnerships also with AI GCC's in different cities in which we are operating and our clients are operating. We've also built a hybrid model where people can work flexibly from different locations even today where they come in for some of the days and are working flexibly from their home locations for the rest of the time. With this strategy, we've set up location centers in cities like Ahmedabad and making sure that that gives a big support within Gujarat and also in many other places for example in Ubli, for example in B visagnam, for example in Nida all of those areas are being developed across the company. Next question is from Sham Ketan Karandikar. Over the next three to five years as GenAI driven productivity improves software development efficiency. How does management expect economic value created by these productivity gains to be distributed among Infosys, its employees and its clients? Specifically, do you expect AI to be margin accretive, margin neutral or margin dilutive? So here what we are seeing is there'll be lot of productivity improvements that are realized through AI which will enable our clients to get some savings which they are typically investing in additional or new IT spends in different ways which is expanding the addressable market that we see. We've also had our own internal project for margin expansion where we've seen the revenue per employee is increasing over the last few years. Our revenues therefore have grown at a faster pace than our headcount. This helped us to improve our margin. If you look at the previous financial year 25 by 50 basis points and in the financial year 26 even with all the different macro negative environments we were seeing that we were able to maintain our margin even as we put some more investments into sales and marketing and our guidance for this coming year financial year 2027 for margin is 20% to 22%. In our medium term with all of this activity and what we see in productivity benefits our endeavor is to improve margins from the current levels as we go ahead. Those were the questions that I had. I will now request Jes to take his questions.

Thanks Nandan. I have a few questions. I'll read them. The first from Mr. GAU last year there was robust performance but the industry going through issues we are now facing the low growth when will we go back to high growth despite forex depreciating we do not see the increase in margin disruptions in geopolitical issues which industry geography will grow and which industry will be a laggard do you see capex and opex spending change in public new growth areas like AI, quantum computing, capex plan for these areas. Will we have new dividend policy because of this? So the last few years we've seen that a lot of the changes have come with the changes in the macro environment and the interest rates which have also led to some of the changes in where the discretionary spending was affected because with our clients now we had a strong performance in the financial year 2026 where we crossed 20 billion in revenue overall and grew at 3.1% on a constant currency basis. One of the things we also mentioned in one of the answers which was given by Jes over the last seven years we are on an organic basis the fastest growing amongst our peers. On FY26, the communications manufacturing verticals and the Europe geography grew more than the company average significantly. In FS financial services and the grouping that we have which is services, utilities, energy, resources, we grew above the company average in constant currency terms. In terms of the outlook, we expect there'll be an acceleration of growth in financial services in energy, utility and resources and services grouping. Those verticals will see that acceleration in the financial year 2027. Our margins we have had them remain stable despite several changes in the past 3 years. There was some cross currency which becomes sometimes a negative. There was of course the situations where we've seen changes in the pyramid and we've also had some acquisitions which overall reduce the weighted margin which comes into effect as the overall operating margin of the company. In terms of our capital allocation policy, it's well defined and we will keep that policy as it's been defined over the next five years. So three more years are remaining in that grouping. And we have clearly 85% which we return to shareholders in different forms and the remaining 15% is available as we choose to do some strategic acquisitions to improve parts of our business. We are not, there is no change on that capital allocation policy. The next question is from Santosh Kumar. What is the company's three priorities to reach 30 billion on revenue? A similar question is also asked by Mr. Bat and Mrs. Smith Sha, Mr. Vipul and Mr. Bat Raj. As AI adoption is growing, we will see that becoming more and more dominant into the revenue of our future. The current pace of change of that AI technology is also fast. And we look ahead, we see opportunities which are related to growth, opportunities related to productivity improvements. And our objective is to make sure we leverage those growth opportunities and grow at a good pace. We also have good AI partnerships and a strong employee reskilling which helps us to become part of the AI journey of our clients. In terms of AI services, we have outlined six new areas and those areas are where we see the most impact. One of the examples of that six is what we see for example in modernizing a lot of the technology estate of our clients. The next question is from Mr. Redappa and a similar question was from Mr. Ji Bakshi and Mrs. Vasuda. Can management elaborate on the steps taken regarding talent retention? So first on attrition last year we were at 12.6% which was in terms of overall numbers and a very good outcome for the company. In the previous year it was 14.1 and in the year before that it was again 12.6. For us nurturing the talent is a critical point for future and continued success. Our employee value proposition is focused on providing employees with career with rewards with recognition, learning and development and wellness. So our total reward approach is benchmarked into the competitive industry and we have long established paths for employees for the upskilling for the reskilling and for the career growth. We believe with all these measures and also the way we are ensuring that there's a flexible work environment for our employees that helps us to make sure that our attrition numbers are low as we had in the previous year and we plan to have those sort of measures on the future. Next question is from Redappa. What is the company doing to increase its deal conversion? So in the deal conversion last year we had approximately $15 billion of large deals of which 55% were net new and that was up by 24% from the previous year. So in addition to large deals we have a portfolio of clients where many are medium and many are small deals as well. And even with all the changes in the macroeconomic headwinds, we see a distinct uptick in the IT spend, especially on AI services and on the modernization opportunities. Those are fairly large into our pipeline. And many of our clients are moving well beyond AI sort of pilot or small projects to really whole enterprise wide AI project deployment. What we see there is that people are deploying large projects IT projects but they're also very cost efficient and making sure they deploy it wisely. Here we also see a lot of change on the GCC's where there's a lot of activity on AI first GCC's where we have a good impact with our clients. The next question on the potential from Mr. Pankage Mani potential impact of AI on the workforce and what are the measures for the reskilling the workforce and equip the workforce in the new environment. So here what we are seeing is that as we have more and more changes of AI coming in we will also have agents that'll be working with what we do as our humans and the overall work we expect will expand. So what we did last year for example with recruiting 20,000 new college graduates, we have a similar plan for this financial year to increase the number of people that we will bring in and that's how we will focus on different types of work using agents but also using the humans. AI adoption is still in a very early stage in many of our clients and industries and so we will see a lot of expertise being developed both human and agent based which are related to a deep understanding of the domain and that's where we will see the benefit of the experience we have. One of the things we have done in terms of reskilling is making sure that we have employees who are AI aware, who are AI builders, and who are AI masters. And they'll be collaborating with our partners who are foundation model companies and compute companies and tools companies to make sure that all of that latest learning is built into what our people know into the market. That's all the questions I had and now I request Jes for his part.