Q1 2027 Infosys Ltd Earnings Call - Press Conference

July 23, 2026

Speaker #1: Oh, very good evening, everyone. And thank you for joining Infosys's first quarter financial results. My name is Rishi, and on behalf of Infosys, I'd like to welcome all of you today.

Speaker #1: I would first like to invite our Chairman, Mr. Nandan Nilekani, and our Chief Executive Officer, Mr. Salil Parekh, for an important announcement, which will then be followed by our business updates.

Rishi Basu: A very good evening, everyone, and thank you for joining Infosys's first quarter financial results. My name is Rishi, and on behalf of Infosys, I would like to welcome all of you today. I would first like to invite our Chairman, Mr. Nandan Nilekani, and our Chief Executive Officer, Mr. Salil Parekh, for an important announcement, which will then be followed by our business updates. Kindly note Nandan will not be taking any questions. Sirs, over to you.

Speaker #4: The pace of change is going to be so rapid that we need partners who operate at scale, with expertise and thought leadership, to help us keep pace with this tidal wave of technology that is coming toward us.

Speaker #1: Kindly note, Nandan will not be taking any questions. Sir, over to you.

Speaker #4: When I look at AI, I think I have two primary concerns that we're trying to address. First of all, obviously, is to treat the patient and member as a consumer.

Speaker #2: Thank you, Rishi, and it's great to be here with all of you. And I thought I would take this opportunity to make an important announcement.

Speaker #4: Healthcare tends to feel very disjointed. It's one of the most important things that happen in people's lives, and yet it can be one of the most highly regulated and disjointed experiences.

Speaker #2: As you know, Salil has been the CEO of Infosys for almost 10 years. He came— I don't know how many of you were there 10 years back, but he came at a time when things were slightly unstable.

Jamisson Fowler: It's one of the most important things that happen in people's lives, yet can be one of the most highly regulated and disjointed experiences. In our industry, we have a saying on the provider side of our.

Nandan Nilekani: Thank you, Rishi, and it is great to be here with all of you. I thought I would take this opportunity to make an important announcement. As you know, Salil has been the CEO of Infosys for almost 10 years. I do not know how many of you were there 10 years back, but he came at a time when things were slightly unstable, and he brought in calmness, focus, took the company from $10 billion to $20 billion, completed the transformation for the digital era, and has started the AI differentiation and transformation. Salil's term comes to an end on 31 March 2027, and Infosys has been looking at his succession. Today I am delighted to tell you that the board has appointed his successor, our new CEO, who will take over on 1 April 2027. He is from Infosys. He has been somebody who is a true blue Infoscion.

Speaker #4: In our industry, we have a saying on the provider side of our business.

Speaker #2: And he brought in calmness, focus, took the company from 10 billion to 20 billion, completely did the transformation for the digital era, and has started the AI differentiation and transformation.

Speaker #2: But Salil's term comes to an end on March 31, 2027. And Infosys has been looking at his succession. And today I'm delighted to tell you that the board has appointed his successor, our new CEO, who will take over on April 1, 2027.

Speaker #2: He's from Infosys, he's been somebody who is a true blue Infosyon, he has worked in Infosys for 31 years, he's worked in every part of delivery, be it in sales, be it in account management, starting a new DC in Bhubaneswar, everything.

Nandan Nilekani: He is from Infosys. He has been somebody who is a true blue Infoscion. He has worked in Infosys for 31 years. He has worked in every part of Infosys, be it in delivery, be it in sales, be it in account management, starting a new DC in Bhubaneswar, everything. He is someone who I think everybody likes, respects. He is an uncomplicated guy who focuses on what needs to be done. His name is Ashiss Dash. Ashiss is based out of LA. He has been there for some time. He will move back to India and in the next two, three months, he will do some CEO coaching or whatever. Then from 1 October 2026, Salil will take him on as his mentee and prepare him for the role so that he can take on this role of managing a complex $20 billion company in a very transformational time.

Nandan Nilekani: He has worked in Infosys for 31 years. He has worked in every part of Infosys, be it in delivery, be it in sales, be it in account management, starting a new DC in Bhubaneswar, everything. He is someone who I think everybody likes, respects. He is an uncomplicated guy who focuses on what needs to be done. His name is Ashiss Dash. Ashiss is based out of LA. He has been there for some time. He will move back to India and in the next two, three months, he will do some CEO coaching or whatever. Then from 1 October 2026, Salil will take him on as his mentee and prepare him for the role so that he can take on this role of managing a complex $20 billion company in a very transformational time. I just wanted to let you know that Ashiss will be the new CEO.

Speaker #2: And he's someone who I think everybody likes, respects, he's an uncomplicated guy who focuses on what needs to be done. His name is Ashish Dash.

Speaker #2: So, Ashish is based out of LA, he's been there for some time. He will move back to India, and he will, in the next 2-3 months, he will get do some CEO coaching or whatever, and then from October 1, Salil will take him on as his mentee.

Speaker #1: Well, a very good evening, everyone, and thank you for joining Infosys's first quarter financial results. My name is Rishi, and on behalf of Infosys, I'd like to welcome all of you today.

Rishi Basu: A very good evening, everyone, thank you for joining Infosys' Q1 financial results. My name is Rishi, on behalf of Infosys, I'd like to welcome all of you today. I would first like to invite our Chairman, Mr. Nandan Nilekani, and our Chief Executive Officer, Mr. Salil Parekh, for an important announcement, which will then be followed by our business updates. Kindly note, Nandan will not be taking any questions. Sirs, over to you.

Speaker #2: And prepare him for the role so that he can take on this role of managing a complex 20 billion dollar company in a very transformational time.

Speaker #1: Kindly note, Nandan will not be taking any questions. Sir, over to you.

Speaker #5: Thank you, Rishi. It's great to be here with all of you. I thought I would take this opportunity to support an announcement. As you know, Salil has been CEO of Infosys for almost ten years.

Nandan Nilekani: Thank you, Rishi. It's great to be here with all of you. As far as today's supposedly very important announcement. As you know, Salil has been CEO of Infosys for almost 10 years. He came, I don't know how many of you were there 10 years back, he came at a time when things were slightly unstable. He brought in calmness, focus to this company from INR 10 billion to INR 20 billion, completed the transformation for the digital era, and started the AI implementation in Infosys. Salil himself passed away on 31 March 2027. Infosys has been looking at his succession. Today, I'm delighted to tell you that the board has appointed his successor, a new CEO, who will take over on 1 April 2027. He's from Infosys. He's been somebody who is a true blue Infoscion. He has worked in Infosys for 31 years.

Speaker #2: So I just wanted to let you know that Ashish will be the new CEO, and I'd now like to request Salil to say a few words about Ashish.

Speaker #3: Thanks, Nandan. So first, welcome everyone. This is an incredible time for us, as Nandan shared. I've known Dash for a very long time, working closely with him.

Nandan Nilekani: I just wanted to let you know that Ashiss will be the new CEO. I would now like to request Salil to say a few words about Ashiss.

Speaker #5: He came—I don't know how many of you were there 10 years back—but he came into the bank, and since then his life has been stable.

Nandan Nilekani: I would now like to request Salil to say a few words about Ashiss.

Speaker #5: And he's brought in calmness and focus to the company, from $10 billion to $20 billion. He completely did the transformation for the digital era and started the AI differentiation and transformation.

Salil Parekh: Thanks, Nandán. First, welcome everyone. This is an incredible time for us. As Nandán shared, I've known Dash for a very long time, working closely with him. A huge congratulations to him in making sure everything he does works well into the future. He's had an amazing portfolio, the way he's built it, the way he's crafted it in terms of the clients he's worked with, in terms of the people he's worked with. There's a tremendous set of opportunities from that onto the overall company, the learnings from that as we apply to the overall company. Ashiss Dash, also a very collaborative individual, working well with all of the various components within Infosys, and having been here for a long time, has made sure he's learned everything, and also understood how all different parts of the company work.

Speaker #3: A huge congratulations to him, and in making sure everything he does works well into the future. He's had an amazing portfolio the way he's built it, the way he's crafted it in terms of the clients he's worked with, in terms of the people he's worked with.

Speaker #5: Salil himself comes to an end on March 31, 2027. And Infosys has been looking at his succession, and today I'm delighted to tell you that the board has appointed his successor, our new CEO, who will take over on April 1, 2027.

Speaker #3: And there's a tremendous set of opportunities from that onto the overall company: the learnings from that as we apply to the overall company. Ashish, Dash, also a very collaborative individual working well with all of the various components within Infosys, and having been here for a long time, has made sure he's learned everything and also understood how all different parts of the company work.

Speaker #5: He's from Infosys, he's been somebody who is a true blue Infosyon, he has worked in Infosys for 31 years, he's worked in every part of Infosys, be it in delivery, be it in sales, be it in account management, starting a new DC in Bhubaneswar, everything, and he's someone who I think everybody likes, respects, he's an uncomplicated guy who focuses on what needs to be done.

Speaker #3: So huge, huge congratulations to him. And looking forward to working with him as we do the transition over the next few months.

Nandan Nilekani: He's worked in every part of Infosys, be it in delivery, be it in sales, be it in account management, starting a new DC in Bhubaneswar, everything. He's someone who I think everybody likes, respects. He's an uncomplicated guy who focuses on what needs to be done. His name is Ashiss Dash. Ashiss is based out of LA. He's been there for some time. He will move back to India, and in the next two, three months, he will do some CEO coaching or whatever. From October 1st, Salil will take him on as his mentee and prepare him for the role so that he can take on this role of managing a complex $20 billion company in a very transformational time.

Salil Parekh: Huge congratulations to him and looking forward to working with him as we do the transition over the next few months.

Speaker #2: I now invite Jayesh to join Salil on stage to commence the quarter updates. As always, for this section I will request one question from each media house.

Nandan Nilekani: Thank you.

Speaker #2: But with that, let me invite Salil for his remarks. Over to you, Salil.

Rishi Basu: I now invite Jayesh to join Salil on stage to commence the quarter update. As always, for this section, I will request one question from each media house. With that, let me invite Salil for his remarks. Over to you, Salil.

Speaker #5: His name is Ashish Dash. So, Ashish is based out of LA; he's been there for some time. He will move back to India, and in the next two to three months, he will do some CEO coaching or whatever.

Speaker #3: Thanks, Rishi, and thanks, Nandan, for that. So good afternoon, everyone. Thank you for being here. Our revenue growth for Q1 was at 2.4% year on year, and 1% quarter on quarter, and constant currency terms.

Salil Parekh: Thanks, Rishi, and thanks, Nandán, for that. Good afternoon, everyone. Thank you for being here. Our revenue growth for Q1 was at 2.4% year-on-year and 1% quarter-on-quarter in constant currency terms. We had a one-time revenue impact of a client decision during the quarter. Our AI services revenue was 8.2% of overall revenue in Q1. Our large deals, INR 3.6 billion at 61% net new. Operating margin at 21.1%. Free cash flow at INR 955 million. Our earnings per share were up 15% year-on-year in rupee terms. We saw strong acceleration in our AI work, as I shared earlier, with AI revenues at 8.2%. This is growing at double-digit quarter-on-quarter for the last several quarters. With this momentum, we see long-term relevance of our services for our clients, which are all driven through AI.

Salil Parekh: Thanks, Rishi, and thanks, Nandan, for that. Good afternoon, everyone. Thank you for being here. Our revenue growth for Q1 was at 2.4% year-on-year and 1% quarter-on-quarter in constant currency terms. We had a one-time revenue impact of a client decision during the quarter. Our AI services revenue was 8.2% of overall revenue in Q1. Our large deals, INR 3.6 billion at 61% net new. Operating margin at 21.1%. Free cash flow at INR 955 million. Our earnings per share were up 15% year-on-year in rupee terms. We saw strong acceleration in our AI work, as I shared earlier, with AI revenues at 8.2%. This is growing at double-digit quarter-on-quarter for the last several quarters. With this momentum, we see long-term relevance of our services for our clients, which are all driven through AI.

Speaker #3: We had a one-time revenue impact of a client decision during the quarter. Our AI services revenue was 8.2% of overall revenue in Q1. Our large deal 3.6 billion at 61% net new, operating margin at 21.1%, free cash flow at 955 million dollars.

Speaker #5: And then from October 1, Salil will take him on as his mentee and prepare him for the role, so that he can take on this role of managing a complex $20 billion company in a very, you know, transformational time.

Speaker #3: Our earnings per share were up 15% year on year, and Rupee terms. We saw a strong acceleration in our AI work, as I shared earlier, with AI revenues at 8.2%.

Speaker #5: So I just wanted to let you know that Ashish will be the new CEO, and I'd now like to request Salil to say a few words about Ashish.

Nandan Nilekani: I just wanted to let you know that Ashiss will be the new CEO, and I'd now like to request Salil to say a few words about Ashiss.

Speaker #3: This is growing at double-digit quarter on quarter for the last several quarters. With this momentum, we see long-term relevance of our services for our clients, which are all driven through AI.

Speaker #1: Thanks, Nandan. So first, welcome everyone. This is an incredible time for us, as Nandan shared. I've known Dash for a very long time, working closely with him.

Rishi Basu: Thanks, Nandan. First, welcome everyone. This is an incredible time for us. As Nandan shared, I've known Dash for a very long time, working closely with him. A huge congratulations to him in making sure everything he does works well into the future. He's had an amazing portfolio, the way he's built it, the way he's crafted it in terms of the clients he's worked with, in terms of the people he's worked with, and there's a tremendous set of opportunities from that onto the overall company, the learnings from that as we apply to the overall company. Ashiss Dash, also a very collaborative individual, working well with all of the various components within Infosys and having been here for a long time, has made sure he's learnt everything and also understood how all different parts of the company work.

Speaker #1: A huge congratulations to him, and in making sure everything he does works well into the future. He's had an amazing portfolio—the way he's built it, the way he's crafted it in terms of the clients he's worked with, in terms of the people he's worked with.

Speaker #3: From our delivery team, over 80,000 employees are working on coding tools such as Claude Code or Codex, or several others. For our clients, for our work inside, we see strong traction across the six areas of growth: the new growth that we see in AI, our hexagon for AI strategy; we see client work, for example, in building agents for processes work on data; modernization and using coding tools.

Salil Parekh: From our delivery team, over 80,000 employees are working on coding tools such as Cloud Code, or Codex, or several others for our clients, for our work insight. We see strong traction across the six areas of growth. The new growth that we see in AI, our hexagon for AI strategy. We see client work, for example, in building agents for processes, work on data modernization, and using coding tools. We are building a team of frontier engineers to support our client work. Our plan is to have 6,000 frontier engineers over the next few years. We built a platform, Topaz Fabric, that enables our clients to get the benefits of AI while keeping the sovereignty of their own data within their company. Our clients are able to work with any foundation model, closed, open weight, or on the cloud, on their own servers.

Speaker #1: And there's a tremendous set of opportunities from that onto the overall company. The learnings from that, as we apply to the overall company. Ashish Dash is also a very collaborative individual, working well with all of the various components within Infosys, and having been here for a long time, has made sure he's learned everything and also understood how all different parts of the company work.

Speaker #3: We are building a team of frontier engineers to support our client work. Our plan is to have 6,000 frontier engineers over the next few years.

Speaker #1: So, huge, huge congratulations to him, and looking forward to working with him as we do the transition over the next few months.

Speaker #3: We have built a platform, Topaz Fabric, that enables our clients to get the benefits of AI while keeping the sovereignty of their own data within their company.

Rishi Basu: Huge congratulations to him and looking forward to working with him as we do the transition over the next few months.

Speaker #5: Thank ank you.

Nandan Nilekani: Salil.

Speaker #1: Certainly. I now invite Jayesh to join Salil on stage to commence the Quarter Updates. As always, for this section, I will request one question from each media house.

Speaker #3: Our clients are able to work with any foundation model closed open weight, or on-the-cloud, on their own servers. Our clients are able to optimize stock token cost, which has become very critical now, to make sure it's the appropriate for the type of work they're doing and not out of hand.

Speaker #3: Overall, we continue to see the macro environment remaining uncertain. With our Q1 results and a view for the rest of the financial year, we are changing our revenue growth guidance to 1.5% to 3% year on year growth in constant currency terms.

Salil Parekh: Our clients are able to optimize token cost, which has become very critical now, to make sure it is appropriate for the type of work they are doing and not out of hand. Overall, we continue to see the macro environment remaining uncertain. With our Q1 results and the view for the rest of the financial year, we are changing our revenue growth guidance to 1.5% to 3% year-on-year growth in constant currency terms. Our operating margin guidance remains the same at 20% to 22% operating margin. Thank you. With that, let's open it up for questions.

Speaker #1: With that, let me invite Salil for his remarks. Over to you, Salil.

Speaker #3: Thanks, Rishi, and thanks, Nandan, for that. Good afternoon, everyone. Thank you for being here. Our revenue growth for Q1 was at 2.4% year on year, and 1% quarter on quarter, in constant currency terms.

Salil Parekh: Thanks, Rishi, and thanks, Nandan, for that. Good afternoon, everyone. Thank you for being here. Our revenue growth for Q1 was at 2.4% year on year and 1% quarter on quarter in constant currency terms. We had a one-time revenue impact of a client decision during the quarter. Our AI services revenue was 8.2% of overall revenue in Q1. Our large deals, $3.6 billion at 61% net new. Operating margin at 21.1%. Free cash flow at $955 million. Our earnings per share were up 15% year on year in rupee terms. We saw strong acceleration in our AI work, as I shared earlier, with AI revenues at 8.2%. This is growing at double-digit quarter on quarter for the last several quarters. With this momentum, we see long-term relevance of our services for our clients, which are all driven through AI.

Speaker #3: Our operating margin guidance remains the same at 20% to 22% operating margin. Thank you, and with that, let's open it up for questions.

Speaker #3: We had a one-time revenue impact from a client decision during the quarter. Our AI services revenue was 8.2% of overall revenue in Q1. Our large deal value was $3.6 billion, with 61% net new. Operating margin was at 21.1%, and free cash flow was $955 million.

Speaker #2: Thank you, Salil. We will now open the floor for questions. The first question is from Ritu Singh from CNBC TV 18.

Speaker #4: Thank you very much. I know you've asked for one question, but if I may, Salil, you've given us a big news in this quarter.

Rishi Basu: Thank you, Salil. We will now open the floor for questions. The first question is from Ritu Singh from CNBC TV18.

Speaker #4: You know, to begin with, you know, since you speak about how you've brought in, you know, Mr. Nilakani spoke about how you brought in calmness at a time when, you know, the company was going through quite a bit.

Speaker #3: Our earnings per share were up 15% year-on-year in Rupee terms. We saw a strong acceleration in our AI work, as I shared earlier, with AI revenues at 8.2%.

Ritu Singh: Thank you very much. I know you've asked for one question, but if I may, Salil, you've given us big news in this quarter. To begin with, since you speak about how you've brought in and Ms. Neelakani spoke about how you brought in calmness at a time when the company was going through quite a bit. Even now, you're speaking of this global uncertainty because of which you've had to, again, pull down your guidance as well. Why decide to leave at a time like now instead of perhaps looking at an extension? I wanted to understand. With the new CEO coming in, any mandate for the new CEO that you would highlight for us more clearly, and perhaps that's something the investors would also want to know.

Speaker #4: Even now you're speaking of this global uncertainty because of which you've had to, again, you know, pull down your guidance as well. Why decide to leave at a time like now instead of perhaps, you know, looking at an extension?

Speaker #3: This is growing at double digits quarter on quarter for the last several quarters. With this momentum, we see long-term relevance of our services for our clients, which are all driven through AI.

Speaker #4: I wanted to understand. And with the new CEO coming in, any mandate for the new CEO that you could highlight for us more clearly, and perhaps that's something the investors would also want to know?

Speaker #3: From our delivery team, over 80,000 employees are working on coding tools such as Claude, Code, or Codex, or several others—for our clients, for our work inside.

Nandan Nilekani: From our delivery team, over 80,000 employees are working on coding tools such as Claude Code or Codex or several others, for our clients, for our work inside. We see strong traction across the six areas of growth, the new growth that we see in AI, our Hexagon for AI strategy. We see client work, for example, in building agents for processes, work on data modernization, and using coding tools. We are building a team of frontier engineers to support our client work. Our plan is to have 6,000 frontier engineers over the next few years. We have built a platform, Topaz Fabric, that enables our clients to get the benefits of AI while keeping the sovereignty of their own data within their company. Our clients are able to work with any foundation model, closed, open weight, or on the cloud, on their own servers.

Speaker #4: And then on the earnings, of course, you know, the reason for this revision down was, you know, if you could give us a little more color on what you're seeing in the environment, where's the weakness, where's momentum picking up.

Speaker #3: We see strong traction across the six areas of growth—the new growth that we see in AI, our hexagon for AI strategy. We see client work, for example, in building agents for processes, work on data modernization, and using coding tools.

Speaker #4: You know, some of your competitors, like TechM, have been talking about irrational competitive pricing. Wipro is also spoken about that a bit. So what are you seeing in the environment, and with a 1% kind of a growth in the first quarter, do we assume the second half will be meaningfully better?

Ritu Singh: On the earnings, of course, the reason for this revision downwards, if you could give us a little more color on what you're seeing in the environment. Where's the weakness? Where's momentum picking up? Some of your competitors like Tech Mahindra have been talking about irrational competitive pricing. Wipro has also spoken about that a bit. What are you seeing in the environment? With a 1% kind of a growth in Q1, do we assume H2 will be meaningfully better if you're to reach that upper end of the 3% guidance you're speaking about? Just on AI, if you could update us how the revenue's moving. Is it proceeding as per what your expectations were? Any updates you could share on that front as well as far as revenue contribution from AI is concerned?

Speaker #4: If you were to reach that upper end of the 3% guidance you're speaking about, and just on AI, if you could update us, you know, how the revenue is moving, is it proceeding as per, you know, what your expectations were?

Speaker #3: We are building a team of frontier engineers to support our client work. Our plan is to have 6,000 frontier engineers over the next few years.

Speaker #3: We have built a platform, Topaz Fabric, that enables our clients to get the benefits of AI while keeping the sovereignty of their own data within their company.

Speaker #4: Any updates you could share on that front as well, as far as revenue contribution from AI is concerned?

Speaker #3: So let me start with the first one. I think you've had that question collectively for some time now. We have the answer. As I look at it, I'm really delighted with the role I've played here.

Speaker #3: Our clients are able to work with any foundation model—closed, open weight, or on the cloud, on their own servers. Our clients are able to optimize stock token cost, which has become very critical now, to make sure it's appropriate for the type of work they're doing and not out of hand.

Salil Parekh: Let me start with the first one. I think you had that question collectively for some time now. We have the answer. As I look at it, I'm really delighted with the role I've played here. We've taken the business, as Nandan said, from $10 billion to $20 billion. It's working very well. The digital transformation, now the AI transformation is launched. I'm really delighted, working well with our clients and with an incredible team that we have inside. That's what I would like to say on the first one. On the second, I think what we are seeing is an environment where, a little bit sort of combining the third piece as well. AI services is growing extremely well. Double-digit growth if you look at it like quarter on quarter, if you look at over several quarters in the past.

Nandan Nilekani: Our clients are able to optimize token cost, which has become very critical now, to make sure it's appropriate for the type of work they're doing and not out of hand. Overall, we continue to see the macro environment remaining uncertain. With our Q1 results and the view for the rest of the financial year, we are changing our revenue growth guidance to 1.5% to 3% year-on-year growth in constant currency terms. Our operating margin guidance remains the same at 20% to 22% operating margin. Thank you. With that, let's open it up for questions.

Speaker #3: We've taken the business, as Nandan said, from 10 billion to 20 billion. It's working very well. The digital transformation, now the AI transformation is launched.

Speaker #3: So I'm really delighted. Working well with our clients and with an incredible team that we have inside. So that's what I would like to say on the first one.

Speaker #3: On the second, I think what we are seeing is an environment where a little bit sort of combining the third piece as well, AI services is growing extremely well.

Speaker #3: Our operating margin guidance remains the same at 20% to 22% operating margin. Thank you, and with that, let's open it up for questions.

Speaker #3: Double-digit growth, if you look at it like quarter on quarter, if you look at it over several quarters in the past. We see that those six areas that we have identified, like the process, the agents, the data, the engineering, all of those are working extremely well with our clients.

Speaker #1: Thank you, Salil. We will now open the floor for questions. The first question is from Ritu Singh from CNBC TV18.

Rishi Basu: Thank you, Salil. We will now open the floor for questions. The first question is from Ritu Singh from CNBC TV18.

Speaker #4: Thank you very much. I know you've asked for one question, but if I may, Salil, you’ve given us big news in this quarter.

Ritu Singh: Thank you very much. I know you've asked for one question, but if I may, Salil, you've given us a big news in this quarter. To begin with, since you speak about how you've brought in, Mr. Nilekani spoke about how you brought in calmness at a time when the company was going through quite a bit. Even now, you're speaking of this global uncertainty because of which you've had to, again, pull down your guidance as well. Why decide to leave at a time like now instead of perhaps looking at an extension? I wanted to understand. With the new CEO coming in, any mandate for the new CEO that you could highlight for us more clearly? Perhaps that's something the investors would also want to know.

Speaker #4: You know, to begin with, you know, since you speak about how you've brought in—you know, Mr. Neelakani spoke about how you brought in calmness at a time when, you know, the company was going through quite a bit.

Salil Parekh: We see that those six areas that we have identified, like the process, the agents, the data, the engineering, all of those are working extremely well with our clients. We are now looking at revenue growth in each of those areas. Our pipeline is even larger than the 8%, which is the revenue today. We see good traction in that. Therefore, we feel there's a good long-term relevance of our services to our clients because this is going to continue to grow as we look out into the future. Now, the question on the guidance. We had a one-time impact that I shared with a client decision. There are factors related to what is going on in the macro environment, which we talked about. There are factors related to the volumes in the quarter. We look at the large deal number, INR 3.6 billion, 61% net new.

Speaker #3: So we are now looking at revenue growth in each of those areas. Our pipeline is even larger than the 8%, which is the revenue today.

Speaker #4: Even now, you're speaking of this global uncertainty because of which you've had to, again, pull down your guidance as well. Why decide to leave at a time like now, instead of perhaps, you know, looking at an extension?

Speaker #3: So we see good traction in that. Therefore, we feel there's a good long-term relevance of our services to our clients, because this is going to continue to grow as we look out into the future.

Speaker #4: I wanted to understand: with the new CEO coming in, are there any mandates for the new CEO that you could highlight for us more clearly? Perhaps that's something investors would also want to know.

Speaker #3: Now, the question on the guidance, we had a one-time impact that I shared with a client decision. There are factors related to what is going on in the macro environment, which we talked about.

Speaker #4: And then on the earnings, of course, you know, the reason for this revision down was—if you could give us a little more color on what you're seeing in the environment: where's the weakness, where's momentum picking up?

Ritu Singh: On the earnings, of course, the reason for this revision downwards, if you could give us a little more color on what you're seeing in the environment. Where's the weakness? Where's momentum picking up? Some of your competitors like Tech Mahindra have been talking about irrational competitive pricing. Wipro's also spoken about that a bit. What are you seeing in the environment? With a 1% guide for growth in Q1, do we assume H2 will be meaningfully better if you're to reach that upper end of the 3% guidance you're speaking about? Just on AI, if you could update us, how the revenue's moving. Is it proceeding as per what your expectations were? Any updates you could share on that front as well, as far as revenue contribution from AI is concerned?

Speaker #4: You know, some of your competitors, like TechM, have been talking about irrational competitive pricing. Wipro has also spoken about that a bit. So, what are you seeing in the environment? And with a 1% kind of growth in the first quarter, do we assume the second half will be meaningfully better?

Speaker #3: There are factors related to the volumes in the quarter. But we look at the large deal number, 3.6 billion, 61% net news. So we see a lot of support in that.

Speaker #4: If you were to reach that upper end of the 3% guidance you're speaking about, and just on AI, if you could update us, you know, how the revenue is moving—is it proceeding as per what your expectations were?

Speaker #3: We see I think there are six of those deals which are consolidation deals that we have been the beneficiary in, as an example. There are four deals which are just under the 500 million dollar range.

Salil Parekh: We see a lot of support in that. We see, I think there are six of those deals which are consolidation deals that we have been the beneficiary in, as an example. There are four deals which are just under the INR 500 million range. Just like a mega deal. We see really good traction. The pipeline there is looking good. All that when we balance, we decided to look at our guidance in a different way. The upper end of the guidance was really based on if the macro was improving. We now see the macro, it may improve, but not at the level that we were thinking initially. That's how we really constructed the guidance. We have tremendous view that this is a good place for Infosys to operate with AI the way it's looking.

Speaker #4: Any updates you could share on that front as well, as far as revenue contribution from AI is concerned?

Speaker #3: So just like a mega deal, so we see, you know, really good traction. The pipeline there is looking good. So although when we balance, we decided to look at our guidance in a different way.

Speaker #3: So let me start with the first one. I think you have had that question collectively for some time now. We have the answer. As I look at it, I'm really delighted with the role I've played here.

Salil Parekh: Let me start with the first one. I think you had that question collectively for some time now. We have the answer. As I look at it, I'm really delighted with the role I've played here. We've taken the business, as Nandan said, from 10 billion to 20 billion. It's working very well. The digital transformation, now the AI transformation is launched. I'm really delighted, working well with our clients and with an incredible team that we have inside. That's what I would like to say on the first one. On the second, I think what we are seeing is an environment where, a little bit sort of combining the third piece as well. AI services is growing extremely well. Double-digit growth, if you look at it like quarter-on-quarter, if you look at on several quarters in the past.

Speaker #3: The upper end of the guidance was really based on if the macro was improving, we now see the macro it may improve, but not at the level that we were thinking initially.

Speaker #3: We've taken the business, as Nandan said, from $10 billion to $20 billion. It's working very well. The digital transformation—now the AI transformation—is launched.

Speaker #3: So, I'm really delighted. We're working well with our clients, and with the incredible team that we have inside. So that's what I would like to say on the first one.

Speaker #3: And so that's how we really constructed the guidance. But we have tremendous view that this is a good place for Infosys to operate, with AI the way it's looking, and all of the work that we're doing on large deals gives us continued traction.

Speaker #3: On the second, I think what we are seeing is an environment where—a little bit, sort of combining the third piece as well—AI services is growing extremely well.

Speaker #4: Thank you. Next question from, you know, why you didn't decide to stay on, and what the mandate is for you, and, you know, it's the second half of written letter.

Speaker #3: Double-digit growth, if you look at it quarter on quarter, or if you look at it over several quarters in the past. We see that those six areas we have identified—the process, the agents, the data, the engineering—all of those are working extremely well with our clients.

Salil Parekh: All of the work that we're doing on large deals gives us continued traction.

Speaker #4: You know, if you could clarify all of those points.

Ritu Singh: Last question, sir. Why you didn't decide to stay on and what the mandate of the new CEO is, and if the H2 could be better. If you could clarify all of those points.

Speaker #3: So there, I think, as I shared earlier, you know, my sense is we've had a tremendous I've been fortunate to have a tremendous sort of opportunity in what we've done at Infosys over the last many years, and having taken the business from about 10 billion to 20 billion.

Salil Parekh: There, I think as I shared earlier, my sense is We've had a tremendous sort of opportunity in what we've done at Infosys over the last many years, and having taken the business from about $10 billion to $20 billion. It's been an incredible journey. That with the team we have and with the client work we've done, that's been a fantastic sort of an outcome. On the mandate, I think our AI strategy is well put together, and Dash has been part of that. Our thinking is, that strategy we want to execute on. Of course, there will be some things which we will look at in terms of fine-tuning, but that's the natural course of evolution. The strategy is very well in place to make sure that goes into the next phase.

Speaker #3: So we are now looking at revenue growth in each of those areas. Our pipeline is even larger than the 8%, which is the revenue today.

Speaker #3: So it's been an incredible journey. And that, you know, with the team we have, and with the client work we've done, that's been a fantastic sort of an outcome.

Speaker #3: So, we see good traction in that. Therefore, we feel there's a good long-term relevance of our services to our clients, because this is going to continue to grow as we look out into the future.

Speaker #3: On the mandate, I think, as AI strategy is well like put together, and Dash has been part of that. So our thinking is, you know, that strategy we want to execute on, of course, there will be some things which we will look at in terms of fine-tuning, but that's the natural course of evolution.

Speaker #3: Now, on the question of guidance, we had a one-time impact that I shared with a client decision. There are factors related to what is going on in the macro environment, which we talked about.

Speaker #3: But the strategy is very well in place, to make sure that that goes into the next phase, making sure, you know, the partnerships we have with the various models, the Topaz fabric that we built, today on AI, it's important that clients see that their own data remains sovereign to them.

Speaker #3: There are factors related to the volumes in the quarter. But if we look at the large deal number—$3.6 billion, with 61% net new—we see a lot of support in that.

Salil Parekh: We see a lot of support in that. I think there are six of those deals which are consolidation deals that we have been the beneficiary in, as an example. There are four deals which are just under the $500 million range, so just like a mega deal. We see really good traction. The pipeline there is looking good. When we balance, we decided to look at our guidance in a different way. The upper end of the guidance was really based on if the macro was improving. We now see the macro, it may improve, but not at the level that we were thinking initially. That's how we really constructed the guidance.

Salil Parekh: Making sure the partnerships we have with the various models, the Topaz Fabric that we built. Today, on AI, it's important that clients see that their own data remains sovereign to them. The way we build Fabric, it allows for the clients to do that no matter which model they're using. That's a very big differentiator we have, for example, in AI. The token cost, that will be an important factor, we think, in the future. We have built Fabric in a way that depending on the task you are using the foundation model for, it will use the right model, so you don't have to pay for the most simple task, like an expensive token cost and so on. We think we are in good position in that.

Speaker #3: We see, I think, there are six of those deals which are consolidation deals that we have been the beneficiary in, as an example. There are four deals which are just under the $500 million range.

Speaker #3: And the way we build fabric, it allows for the clients to do that, no matter which model they're using. And so that's a very big differentiator we have for example in AI.

Speaker #3: The token cost, you know, that will be an important factor, we think, in the future. And we have built like fabric in a way that, depending on the task you are using the foundation model for, it will use the right model.

Speaker #3: So, just like a mega deal, we see really good traction. The pipeline there is looking good. So, although when we balance, we decided to look at our guidance in a different way.

Speaker #3: The upper end of the guidance was really based on if the macro was improving. We now see the macro may improve, but not at the level that we were thinking initially.

Speaker #3: So you don't have to pay for the most simple task like an expensive token cost and so on. So we think we're in good position in that, in terms of second half, first half, I think we have the guidance for the full year.

Speaker #3: And so that's how we really constructed the guidance. But we have a tremendous view that this is a good place for Infosys to operate with AI, the way it's looking, and all of the work that we're doing on large deals gives us continued traction.

Speaker #3: We expect the normal seasonality that will come. We're not expecting anything unusual there.

Salil Parekh: We have tremendous view that this is a good place for Infosys to operate with AI the way it's looking, and all of the work that we're doing on large deals gives us continued traction.

Speaker #4: Competitive pricing in the market. That, you know, some of your peers have spoken about.

Salil Parekh: In terms of H2, H1, I think we have the guidance for the full year. We expect the normal seasonality that will come. We're not expecting anything unusual there.

Speaker #3: Yeah. So maybe they are seeing that. We should check with them.

Ritu Singh: Can I ask a question, sir, why you will decide stay on and what the mandate is going to be with, and if the H2 will be better? If you could clarify all of those points.

Speaker #4: Last question: so, why did you decide to stay on, and what is the mandate to you? And, you know, is the second half really better?

Speaker #2: Thanks. Thanks, Ritu. The next question is from Rishabh Shah from Money Control.

Ritu Singh: Competitive pricing in the market. That some of your peers have spoken about.

Speaker #4: You know, you could clarify all of those points.

Salil Parekh: Yeah. Maybe they are seeing that. You should check with them.

Speaker #5: Salil, if you could tell us your biggest achievement and what will you miss the most, and what's next coming for you? On the performance, quarterly performance, how has been the TCV conversion?

Speaker #3: So there, I think, as I shared earlier, you know, my sense is we've had a tremendous—I've been fortunate to have a tremendous sort of opportunity in what we've done at Infosys over the last many years, and having taken the business from about $10 billion to $20 billion.

Salil Parekh: There, I think as I shared earlier, my sense is I've been fortunate to have a tremendous sort of opportunity in what we've done at Infosys over the last many years, and having taken the business from about 10 billion to 20 billion. It's been an incredible journey. That with the team we have and with the client work we've done, that's been a fantastic sort of an outcome. On the mandate, I think our AI strategy is well put together, and Dash has been part of that. Our thinking is that strategy we want to execute on. Of course, there will be some things which we will look at in terms of fine-tuning, but that's the natural course of evolution.

Rishi Basu: Thanks, Ritu. The next question is from Rishabh Shah from Moneycontrol.

Rishi Basu: Thanks, Ritu. The next question is from Reshab Shaw from Moneycontrol.

Rishabh Shah: Salil, if you could tell us your biggest achievement and what will you miss the most and what's next coming for you? On the performance, quarterly performance, how has been the TCV conversion? Because that's a worry that investors have. The third question is, two of your peers have highlighted that AI revenue is slightly lumpy, and it could be one or two quarters, post which you'll have to go and get those deals again. Is that something that Infosys is also seeing? Thank you.

Reshab Shaw: Salil, if you could tell us your biggest achievement and what will you miss the most and what's next coming for you? On the performance, quarterly performance, how has been the TCV conversion? Because that's a worry that investors have. The third question is, two of your peers have highlighted that AI revenue is slightly lumpy, and it could be one or two quarters, post which you'll have to go and get those deals again. Is that something that Infosys is also seeing? Thank you.

Speaker #5: Because that's a worry that investors have, you know, on and the second and the third question is, two of your peers have highlighted that AI revenue is slightly lumpy, and it could be one or two quarters post which you'll have to go and get those deals again.

Speaker #3: So it's been an incredible journey. And that, you know, with the team we have, and with the client work we've done, that's been a fantastic sort of an outcome.

Speaker #5: So is that something that Infosys is also seeing? Thank you.

Speaker #3: On the mandate, I think our AI strategy is well put together, and Dash has been part of that. So our thinking is, you know, that strategy we want to execute on—of course, there will be some things which we will look at in terms of fine-tuning, but that's the natural course of evolution.

Speaker #3: So let me start with the second one. I'll come back to the first. I think the TCV conversion we see pretty good way of converting now.

Speaker #3: What tends to happen is, like when you have a consolidation deal, the conversion comes a little bit quicker. When you have a transformation deal, it's a little bit sort of spread out.

Salil Parekh: Let me start with the second one. I'll come back to the first. I think the TCV conversion, we see a pretty good way of converting now. What tends to happen is, when you have a consolidation deal, the conversion comes a little bit quicker. When you have a transformation deal, it's a little bit sort of spread out. That's the normal sort of conversion we see. We don't see that it's suddenly changed in the last quarter or couple of quarters or so on. On the AI revenue, I think it's moving so quickly that it is a bit up and down in a quarter-by-quarter basis. Our thought is, that's why we are saying, look at over the last several quarters, we see that double-digit type of growth quarter on quarter. We will see sometimes it could be a little bit faster, but it's growing nonetheless.

Speaker #3: But the strategy is very well in place to make sure that that goes into the next phase, making sure, you know, the partnerships we have with the various models, the Topaz fabric that we built today on AI—it's important that clients see that their own data remains sovereign to them.

Salil Parekh: The strategy is very well in place to make sure that that goes into the next phase, making sure the partnerships we have with the various models, the Topaz Fabric that we built. Today, on AI, it's important that clients see that their own data remains sovereign to them. The way we build Fabric, it allows for the clients to do that no matter which model they're using. That's a very big differentiator we have, for example, in AI. The token cost, that will be an important factor, we think, in the future. We have built Fabric in a way that depending on the task you are using the foundation model for, it will use the right model so you don't have to pay for the most simple task, like an expensive token cost and so on.

Speaker #3: But that's the normal sort of conversion we see. We don't see that it's suddenly changed like in the last quarter or a couple of quarters or so on there.

Speaker #3: On the AI revenue, I think it's moving so quickly that it is a bit up and down in a quarter by quarter basis. So our thought is, you know, that's why we're saying, like, look at over the last several quarters, we see that double digit type of growth quarter on quarter.

Speaker #3: And the way we build Fabric, it allows for the clients to do that, no matter which model they're using. And so that's a very big differentiator we have, for example, in AI.

Speaker #3: And we will see sometimes it could be a little bit faster, but it's growing nonetheless. I mean, if you look at the secular trend, we see that is pretty strong.

Speaker #3: The token cost, you know, that will be an important factor, we think, in the future. And we have built Fabric in a way that, depending on the task you are using the foundation model for, it will use the right model so you don't have to pay for the most simple task with an expensive token cost, and so on.

Speaker #3: And that gives us a little bit of the view that long-term, you know, there's a relevance of what we are doing on AI for the clients.

Salil Parekh: Meaning, if you look at the secular trend, we see that is pretty strong, and that gives us a little bit of the view that long term, there's a relevance of what we are doing on AI for the clients. For me, I think I'm very focused on what we have to do here at Infosys. We have a lot of things to get done. I want to make sure we remain in the leadership position, we win in the market, we are leading in AI, and I get a smooth transition done. That's really my focus, and after that, I'll see what else happens.

Speaker #3: For me, I think I'm very focused on, you know, what we have to do here at Infosys. We have a lot of things to get done.

Speaker #3: I want to make sure we remain in the leadership position. We've been in the market. We are leading in AI. And I get a smooth transition done.

Speaker #3: So, we think we're in a good position in that. In terms of the second half and first half, I think we have the guidance for the full year.

Salil Parekh: We think we are in good position in that. In terms of H2, H1, I think we have the guidance for the full year. We expect the normal seasonality that will come. We're not expecting anything unusual there.

Speaker #3: We expect the normal seasonality that will come. We're not expecting anything unusual there.

Speaker #3: So that's really my focus. And after that, I'll see what else happens.

Speaker #2: Thanks, Rishabh. The next question is from Manfi Dave from ETNow.

Speaker #4: Competitive pricing in the market—that, you know, some of your peers have spoken about.

Ritu Singh: Competitive pricing in the market that some of your peers have spoken about.

Speaker #5: Hello, good afternoon, Salil and Jayesh. Nice talking to you. Salil, my questions are on client spending large deals and competitive positioning. So talking about the client spending, client budgets remain selective across industries.

Speaker #3: Yeah, so maybe they are saying that you should check with them.

Salil Parekh: Yeah. Maybe they are seeing that. You should check with them.

Speaker #2: Thanks, Ritu. The next question is from Rishabh Shah from Moneycontrol. Salil, if you could tell us your biggest achievement, what you will miss the most, and what's next for you?

Rishi Basu: Thanks, Ritu. The next question is from Rishabh Shaw from Moneycontrol.

Rishi Basu: Thanks, Rishabh. The next question is from Mansee Dave from ET Now.

Mansee Dave: Hello, good afternoon, Salil and Jayesh. Nice talking to you. Salil, my questions are on client spending, large deals, and competitive positioning. Talking about the client spending, client budgets remain selective across industries. Have you started seeing any improvement in discretionary technology spending, or are enterprises still prioritizing cost optimization over transformation? Talking about the large deals, Infosys has maintained a healthy large deal pipeline. How confident are you that these deals will convert into faster revenue growth? Also, every global IT company today is talking about AI. What would you say is Infosys' biggest competitive advantage in this AI-led technology cycle? Please start with this one. Which moment during your tenure best reflects the values and culture of Infosys? Thank you.

Speaker #5: Have you started seeing any improvement in discretionary technology spending? Or are enterprises still prioritizing cost optimization over transformation? Talking about the large deals, Infosys has maintained a healthy large deal pipeline.

Rishi Basu: Rishabh Shaw.

Rishi Basu: Salil, if you could tell us your biggest achievement and what will you miss the most and what's next coming for you? On the quarterly performance, how has been the TCV conversion? That's a worry that investors have. The third question is, two of your peers have highlighted that AI revenue is slightly lumpy, and it could be one or two quarters post which you'll have to go and get those deals again. Is that something that Infosys is also seeing? Thank you.

Speaker #2: On the performance, quarterly performance, how has the TCV conversion been? Because that's a worry that investors have, you know. And the second and the third question are: two of your peers have highlighted that AI revenue is slightly lumpy, and it could be one or two quarters after which you'll have to go and get those deals again.

Speaker #5: So how confident are you that these deals will convert into faster revenue growth? Also, every global IT company today is talking about AI. What would you say is Infosys' biggest competitive advantage in this AI-led technology cycle?

Speaker #5: And please start with this one. Which moment during your tenure best reflects the values and culture of Infosys? Thank you.

Speaker #2: So is that something that Infosys is also seeing? Thank you.

Speaker #3: So let me start with the second one. I'll come back to the first. I think the TCV conversion—we see a pretty good way of converting now.

Salil Parekh: Let me start with the second one. I'll come back to the first. I think the TCV conversion, we see a pretty good way of converting now. What tends to happen is, when you have a consolidation deal, the conversion comes a little bit quicker. When you have a transformation deal, it's a little bit sort of spread out. That's the normal sort of conversion we see. We don't see that it's suddenly changed, like in the last quarter, a couple of quarters, or so on. On the AI revenue, I think it's moving so quickly that it is a bit up and down in a quarter-by-quarter basis. Our thought is, that's why we are saying, look at over the last several quarters, we see that double-digit type of growth quarter-on-quarter.

Speaker #3: Okay. There was a few. So I'll start with the first was a conversion of the TCV discussion. I think we see that, you know, the large deals we see a good traction of those the values over the last few quarters have been strong.

Speaker #3: What tends to happen is, like when you have a consolidation deal, the conversion comes a little bit quicker. When you have a transformation deal, it's a little bit more spread out.

Salil Parekh: Okay. There was a few, so I'll start with the first was a conversion of the TCV discussion. I think we see that the large deals, we see a good traction of those. The values over the last few quarters have been strong. This quarter was pretty good. We see the pipeline to be pretty good on the large deals, and we feel there's a benefit of the consolidation that we are seeing in some of the large deals, which is definitely helping us as we go through it. The conversion, whether it's faster or slower, I think it's at the same type of a level, and we will convert those into revenue. With 61% net new, it already looks pretty strong in terms of the net new work, which we'll see. Obviously, the renewals are going pretty okay as well.

Speaker #3: But that's the normal sort of conversion we see. We haven't seen that it's suddenly changed in the last quarter, or a couple of quarters, or so on there.

Speaker #3: This quarter was pretty good. We see the pipeline to be pretty good on the large deals. And we feel there's a benefit of the consolidation that we are seeing in some of the large deals, which is definitely helping us as we go through it.

Speaker #3: On the AI revenue, I think it's moving so quickly that it is a bit up and down on a quarter-by-quarter basis. So our thought is, you know, that's why we're saying, like, look at over the last several quarters—we see that double-digit type of growth quarter on quarter.

Speaker #3: The conversion whether it's faster or slow, it's more I think it's at the same type of a level. And we will convert those into revenue with 61% net new.

Speaker #3: And we will see sometimes it could be a little bit faster, but it's growing nonetheless. Meaning, if you look at the secular trend, we see that it is pretty strong, and that gives us a little bit of the view that long-term, you know, there's a relevance of what we are doing on AI for the clients.

Salil Parekh: We will see sometimes it could be a little bit faster, but it's growing nonetheless. Meaning, if you look at the secular trend, we see that is pretty strong, and that gives us a little bit of the view that long term, there's a relevance of what we are doing on AI for the clients. For me, I think I'm very focused on what we have to do here at Infosys. We have a lot of things to get done. I want to make sure we remain in the leadership position. We win in the market. We are leading in AI, and I get a smooth transition done. That's really my focus, and after that, I'll see what else happens.

Speaker #3: It already looks pretty strong in terms of the net new work, which we'll see and obviously the renewals are going pretty okay as well.

Speaker #3: On AI, I think there's a huge differentiation that I find from what we are sort of working on. First, we have a very clear AI strategy with the six areas of focus.

Speaker #3: For me, I think I'm very focused on, you know, what we have to do here at Infosys. We have a lot of things to get done.

Speaker #3: I want to make sure we remain in the leadership position. We've been in the market. We are leading in AI. And I get a smooth transition done.

Salil Parekh: On AI, I think there's a huge differentiation that I find from what we are working on. First, we have a very clear AI strategy with the six areas of focus. We are investing in it. Jayesh has shared in the past, you'll share also today, that we have invested in building out AI capability. We have, as I shared earlier, 8% revenue growing double digit Q on Q over the last several quarters. We have a good pipeline in that area. You look at some of the stats. We have 80,000 people working on the tools today for client work. It's not just training and so on.

Speaker #3: We are investing in it. We've actually taken and Jayesh has shared in the past, he'll share also today, the we have invested in building out AI capability.

Speaker #3: So, that's really my focus. And after that, I'll see what else happens.

Speaker #2: Thanks, Rishabh. The next question is from Manfi Dave from ET Now.

Rishi Basu: Thanks, Rishabh. The next question is from Mansee Dave from ET Now.

Speaker #3: We have as I shared earlier, 8% revenue growing double digit Q on Q over the last several quarters. We have a good pipeline in that area.

Speaker #4: Hello, good afternoon, Salil and Jayesh. Nice talking to you. Salil, my questions are on client spending, large deals, and competitive positioning. So, talking about client spending, client budgets remain selective across industries.

Mansee Dave: Hello. Good afternoon, Salil and Jayesh. Nice talking to you. Salil, my questions are on client spending, large deals, and competitive positioning. Talking about the client spending, client budgets remain selective across industries. Have you started seeing any improvement in discretionary technology spending, or are enterprises still prioritizing cost optimization over transformation? Talking about the large deals, Infosys has maintained a healthy large deal pipeline. How confident are you that these deals will convert into faster revenue growth? Also, every global IT company today is talking about AI. What would you say is Infosys' biggest competitive advantage in this AI-led technology cycle? Please start with this one. Which moment during your tenure best reflects the values and culture of Infosys? Thank you.

Speaker #3: Then you look at some of the stats. We have 80,000 people working on the tools today for client work. It's not just training and so on.

Speaker #4: Have you started seeing any improvement in discretionary technology spending, or are enterprises still prioritizing cost optimization over transformation? Talking about the large deals, Infosys has maintained a healthy large deal pipeline.

Speaker #3: Then what we built with Fabric, I feel, is very differentiated because it allows clients to maintain control of their data maintain control of what they want to do with the AI.

Speaker #4: So how confident are you that these deals will convert into faster revenue growth? Also, every global IT company today is talking about AI. What would you say is Infosys' biggest competitive advantage in this AI-led technology cycle?

Salil Parekh: What we built with Fabric, I feel is very differentiated because it allows clients to maintain control of their data, maintain control of what they want to do with the AI, and still use the different models, use lower cost. We have a harness through which they can leverage what they want to achieve with the foundation model. That is a significant move up in terms of differentiation that we have seen there. I think in terms of values, my sense has always been Infosys has incredible values, and it has really been sort of a privilege to be associated with that and learn from it, and contribute to it. In many ways, it is a great fortunate thing that that could happen in the way that it has happened.

Speaker #3: And still use the different models. Use lower cost. We have a harness through which they can leverage what they want to achieve with the foundation model.

Speaker #4: And please start with this one. Which moment during your tenure best reflects the values and culture of Infosys? Thank you.

Speaker #3: So that is a significant move up in terms of differentiation that we've seen there. I think in terms of values, you know, my sense has always been Infosys is as incredible values and it's really been sort of a privilege to be associated with that.

Speaker #3: Okay. There were a few, so I'll start with the first, which was a conversion of the TCV discussion. I think we see that with the large deals, we are seeing good traction; the values over the last few quarters have been strong, and this quarter was pretty good.

Salil Parekh: Okay. I'll start with the first was a conversion of the TCV discussion. I think we see the large deals. We see a good traction of those. The values over the last few quarters have been strong. This quarter was pretty good. We see the pipeline to be pretty good on the large deals. We feel there's a benefit of the consolidation that we are seeing in some of the large deals, which is definitely helping us as we go through it. The conversion, whether it's faster or slower, I think it's at the same type of a level. We will convert those into revenue. With 61% net new, it already looks pretty strong in terms of the net new work, which we'll see. Obviously, the renewals are going pretty okay as well.

Speaker #3: And learn from it and contribute to it. So in many ways, it's a great, great sort of fortunate thing that that could happen in the way that it has happened there.

Speaker #3: We see the pipeline to be pretty good on the large deals, and we feel there's a benefit from the consolidation that we are seeing in some of the large deals, which is definitely helping us as we go through it.

Speaker #2: Thank you. The next question is from Shilpa Fadness from the Times of India.

Speaker #5: Hello, sir. Can you please give us some color on how we are GCC portfolio is doing? Because some of your peers who are slightly late starters are catching up.

Speaker #3: The conversion, whether it’s faster or slow, I think it’s at about the same type of level, and we will convert those into revenue with 61% net new.

Rishi Basu: Thank you. The next question is from Shilpa Phadnis, from The Times of India.

Speaker #5: They're already looking at a billion dollar in revenue run rate. So I just wanted to understand from you, how it's doing? I mean, is there a milestone that you have touched?

Shilpa Phadnis: Hello, sir. Can you please give us some color on how your GCC portfolio is doing? Some of your peers who are slightly late starters are catching up. They are already looking at a billion-dollar in revenue run rate. I just wanted to understand from you how it is doing. Is there a milestone that you have touched? Secondly, there is also concern with Vanguard and Daimler and a lot of other companies are chipping into the space. They are setting up their own GCCs. How much of that compression are you seeing in the market?

Speaker #3: It already looks pretty strong in terms of the net new work, which we'll see, and obviously the renewals are going pretty okay as well.

Speaker #5: And secondly, there's also a concern with Vanguard and Daimler and a lot of other companies are chipping into the space. They're setting up their own GCCs.

Speaker #3: On AI, I think there's a huge differentiation that I find from what we are sort of working on. First, we have a very clear AI strategy with the six areas of focus we are investing in.

Salil Parekh: On AI, I think there's a huge differentiation that I find from what we are sort of working on. First, we have a very clear AI strategy with the six areas of focus. We are investing in it. We've actually taken. Jayesh has shared in the past, you'll share also today, that we have invested in building out AI capability. We have, as I shared earlier, 8% revenue growing double digit Q on Q over the last several quarters. We have a good pipeline in that area. You look at some of the stats. We have 80,000 people working on the tools today for client work. It's not just training and so on.

Speaker #5: How much of that compression are you seeing in the market?

Speaker #3: So GCC, in fact, my sense is you might have seen the launch the like an AI GCC concept some time ago. And that we had a client event a few months ago where all the leading GCCs of the country their leadership teams were here in Bangalore on our campus.

Speaker #3: We've actually taken, and Jayesh has shared in the past—he'll share also today—that we have invested in building out AI capability. We have, as I shared earlier, 8% revenue growth, growing double digits quarter on quarter over the last several quarters.

Salil Parekh: On GCC, in fact, my sense is, you might have seen we launched the AI GCC concept some time ago. That we had a client event a few months ago where all the leading GCCs of the country, their leadership teams were here in Bangalore on our campus. We did a one-day session sharing with them what the latest developments were in overall and also in the AI GCC. Our traction on GCC is looking very strong. We do not externally share the milestone, but our revenue growth is good. Our work with them is good. In the GCC, there is always a life cycle. There are some which are expanding well, and there are some in the past where they have exited, and we have sometimes participated in that and so on. That continues.

Speaker #3: And we did a like a one-day session sharing with them what the latest developments were in overall and also in the AI GCC. So attraction on GCCs looking very strong.

Speaker #3: We have a good pipeline in that area. Then you look at some of the stats: we have 80,000 people working on the tools today for client work.

Speaker #3: We don't like externally share the milestone. But our revenue growth is good. Our work with them is good. In the GCC, there's always a life cycle.

Speaker #3: It's not just training and so on. Then what we built with Fabric I feel is very differentiated, because it allows clients to maintain control of their data, maintain control of what they want to do with the AI.

Salil Parekh: What we built with Fabric, I feel is very differentiated because it allows clients to maintain control of their data, maintain control of what they want to do with the AI, and still use the different models, use lower cost. We have a harness through which they can leverage what they want to achieve with the foundation model. That is a significant move up in terms of differentiation that we've seen. I think in terms of values, my sense has always been Infosys has incredible values. It's really been sort of a privilege to be associated with that and learn from it and contribute to it. In many ways, it's a great fortunate thing that that could happen in the way that it has happened.

Speaker #3: So there are some which are expanding well and there are some in the past where they have exited and we've sometimes participated in that and so on.

Speaker #3: And that continues. But the overall GCC like work both within the GCC and like the work we are doing with them I think both are growing pretty nicely.

Speaker #3: And still use the different models, use lower cost. We have a harness through which they can leverage what they want to achieve with the foundation model.

Speaker #3: So, that is a significant move up in terms of differentiation that we've seen there. I think, in terms of values, my sense has always been Infosys has incredible values, and it's really been sort of a privilege to be associated with that.

Speaker #5: I have two questions, sir. When do you think, you know, AI-led revenues will be material enough to offset productivity-led compression that customers are seeing in the market?

Salil Parekh: The overall GCC work, both within the GCC and the work we are doing with them, I think both are growing pretty nicely.

Speaker #3: No, I think my sense is the AI-led revenues are extremely significant at 8% already. And if you look at the growth trajectory and if we execute on that well, and the growth trajectory continues, we can see now a long-term relevance of AI revenues to our clients from what we are doing.

Shilpa Phadnis: I have two questions, sir. When do you think AI-led revenues will be material enough to offset productivity-led compression that customers are seeing in the market?

Speaker #3: And learn from it and contribute to it. So, in many ways, it's a great, great sort of fortunate thing that that could happen in the way that it has happened there.

Salil Parekh: I think my sense is the AI-led revenues are extremely significant at 8% already. If you look at the growth trajectory, if we execute on that well and the growth trajectory continues, we can see now a long-term relevance of AI revenues to our clients from what we are doing. The productivity will also continue, but I think it's both of those things. When we shared our strategy and that hexagon, we had outlined an INR 300 billion market opportunity, addressable market. That's all new revenue. Also, the productivity will happen. The significance, I think already we can start to see here.

Speaker #2: Thank you. The next question is from Shilpa Fadness from the Times of India.

Rishi Basu: Thank you. The next question is from Shilpa Phadnis from The Times of India.

Speaker #3: The productivity will also continue. But I think it's both of those things because like when we share our strategy and that hexagon we had outlined like a 300 billion dollar market opportunity.

Shilpa Phadnis: Hello, sir. Can you please give us some color on how your GCC portfolio is doing? Because some of your peers who are slightly late starters are catching up. They're already looking at a billion-dollar in revenue run rate. I just wanted to understand from you, how it's doing. Is there a milestone that you have touched? Secondly, there's also concern with Vanguard and Daimler and a lot of other companies are chipping into the space. They're setting up their own GCCs. How much of that compression are you seeing in the market?

Speaker #4: Can you please give us some color on how our GCC portfolio is doing? Because some of your peers, who are slightly late starters, are catching up.

Speaker #4: They're already looking at a billion-dollar revenue run rate. So I just wanted to understand from you how it's doing. I mean, is there a milestone that you have touched?

Speaker #3: Addressable market. So that's all new revenue. And also the productivity will happen with the significance I think already we can start to see here.

Speaker #4: And secondly, there's also a concern with Vanguard and Daimler, and a lot of other companies are chipping into the space. They're setting up their own GCCs.

Speaker #2: And if I can just add, if you look at when we launched our hexagon in February of this year, our AI revenue for Q3 was 5.5% of our revenue.

Speaker #4: How much of that compression are you seeing in the market?

Speaker #2: Today it's already at 8.2%. So it's already significant. It's growing at a very fast double digit over double digit growth, right? And at that pace, it is already becoming a growth engine in a way.

Jayesh Sanghrajka: If I can just add. If you look at when we launched our hexagon in February of this year, our AI revenue for Q3 was 5.5% of our revenue. Today, it's already at 8.2%. It's already significant. It's growing at a very fast double digit, over double digit growth. Right? At that pace, it is already becoming a growth engine in a way. That acceleration is becoming a long-term play in the way.

Speaker #3: So on GCC, in fact, my sense is you might have seen we launched the like an AI GCC concept some time ago and that we had a client event a few months ago where all the leading GCCs of the country their leadership teams were here in Bangalore on our campus and we did a like a one-day session sharing with them what the latest developments were in overall and also in the AI GCC.

Salil Parekh: On GCC, in fact, my sense is, you might have seen we launched the AI GCC concept some time ago. We had a client event a few months ago where all the leading GCCs of the country, their leadership teams were here, in Bangalore on our campus, and we did a one-day session sharing with them what the latest developments were in overall and also in the AI GCC. Our traction on GCC is looking very strong. We don't externally share the milestone, but our revenue growth is good. Our work with them is good. In the GCC, there's always a life cycle. There are some which are expanding well, and there are some, in the past where they have exited, and we've sometimes participated in that and so on. That continues.

Speaker #2: So that accelerates it. It's becoming, you know, a long-term play in the way.

Speaker #5: This is not reclassification in any format, right? Okay, okay. One last thing, sir. On the status of hikes, you know, Infosys has not called that out yet.

Speaker #5: So where are you on that? And secondly, also on forward deployed engineers, there's a lot of talk in the tech ecosystem about this. But how difficult is it for a services company to, you know, sort of plug FDs into the existing workflows?

Shilpa Phadnis: This is not reclassification in any format, right?

Jayesh Sanghrajka: No.

Shilpa Phadnis: Okay. One last thing, sir. On the status of hikes, Infosys has not called that out yet. Where are you on that? Secondly, also on frontier engineers, there is a lot of talk in the tech ecosystem about this. How difficult is it for a services company to sort of plug FEs into the existing workflows? There are several challenges that companies are facing.

Speaker #3: So, attraction on GCCs is looking very strong. We don't externally share the milestone, but our revenue growth is good. Our work with them is good.

Speaker #5: There are several challenges that companies are facing.

Speaker #3: Let me start with the second one. We'll come back to the first. On frontier engineers, we have now have a very good plan which has been put in place some time ago to scale that up.

Speaker #3: In the GCC, there's always a lifecycle. So, there are some which are expanding well, and there are some in the past where they have exited, and we've sometimes participated in that, and so on.

Salil Parekh: Let me start with the second one. We will come back to the first. On frontier engineers, we now have a very good plan which has been put in place some time ago to scale that up. We have a lot of capability within Infosys which are doing similar work. We are making sure that it works in the way that the frontier engineer needs to work with clients today. We have set the objective of 6,000 to make sure that the teams can work with different clients to make the impact. We feel we have a good understanding of how that works because the capability is really the engineering plus the business context, and that is something that Infosys was good at even before the AI wave of work had started. We are making sure that that becomes very much part of the future in that.

Speaker #3: We have a lot of capability within Infosys which are doing similar work. We are making sure that it works in the way that the frontier engineer needs to work with clients today.

Speaker #3: And that continues, but the overall GCC-like work, both within the GCC and the work we are doing with them, I think both are growing pretty nicely.

Salil Parekh: The overall GCC work, both within the GCC and the work we are doing with them, I think both are growing pretty nicely.

Shilpa Phadnis: I have two questions, sir. When do you think AI-led revenues will be material enough to offset productivity-led compression that customers are seeing in the market?

Speaker #4: I have two questions. When do you think, you know, AI-led revenues will be material enough to offset the productivity-led compression that customers are seeing in the market?

Speaker #3: We've set the objective of 6,000 to make sure that it the teams can work with different clients to make the impact. We feel we have a good understanding of how that works because the capability is really the engineering plus the business context.

Salil Parekh: I think my sense is the AI-led revenues are extremely significant at 8% already. If you look at the growth trajectory, if we execute on that well and the growth trajectory continues, we can see now a long-term relevance of AI revenues to our clients from what we are doing. The productivity will also continue, I think it's both of those things. When we share our strategy and that Hexagon, we had outlined a $300 billion market opportunity, addressable market. That's all new revenue. Also the productivity will happen. The significance, I think already we can start to see here.

Speaker #3: So, I think my sense is the AI-led revenues are extremely significant at 8% already. And if you look at the growth trajectory, and if we execute on that well, and the growth trajectory continues, we can see now a long-term relevance of AI revenues to our clients from what we are doing.

Speaker #3: And that's something that Infosys was good at even before the AI like wave of work had started. And so we are making sure that that becomes very much part of the future in that.

Speaker #3: On the compensation increases, we will roll out a compensation increases in October and January in two parts. And that's part of something internal that we have announced now.

Salil Parekh: On the compensation increases, we will roll out our compensation increases in October and January in two parts. That is part of something internal that we have announced now.

Speaker #2: Yeah, with most of the employees getting increase in October. And the senior employees will get it in January. Thanks, Shilpa. The next question is from Avik Das from Business Standard.

Speaker #3: Addressable market—so that's all new revenue. And also, the productivity will happen, but the significance, I think, we can already start to see. And if I can just add,

Jayesh Sanghrajka: If I can just add, if you look at when we launched our Hexagon in February of this year, our AI revenue for Q3 was 5.5% of our revenue. Today, it's already at 8.2%. It's already significant. It's growing at a very fast double digit, over double digit growth. At that pace, it is already becoming a growth engine in a way. That acceleration is becoming a long-term play in the way.

Speaker #5: So, good afternoon. Just three quick questions and one for Jayesh. You talked about how the macro perhaps hasn't sort of improved over the last three months that you perhaps would have wanted to.

Jayesh Sanghrajka: Yeah. With most of the employees getting increases in October, the senior employees will get it in January.

Speaker #2: If you look at when we launched our Hexagon in February of this year, our AI revenue for Q3 was 5.5% of our revenue. Today, it's already at 8.2%.

Rishi Basu: Thanks, Shilpa. The next question is from Avik Das from Business Standard.

Speaker #2: So, it's already significant. It's growing at a very fast, double-digit—over double-digit—growth, right? And at that pace, it is already becoming a growth engine in a way.

Avik Das: Salil, good afternoon. Just three quick questions and one for Jayesh. You talked about how the macro perhaps hasn't improved over the last three months that you perhaps would have wanted to. Just wanted to understand, which are some of those parts of the macro that led you to first to increase it between 1.5 to 3.5. Now you sort of cut it down to three. Which are some of those areas which did not really work according to your expectations? Number two is that, would Infosys ever at all, at least in the near future, would you want the company to move into the AI infrastructure business data center, something that HCLTech and TCS has already done? The last question is, what would you classify, at least in your tenure, as the most challenging period? Was it the COVID or is it the AI-led transformation for Infosys?

Speaker #5: Just wanted to understand which are some of those parts of the macro that led you to first to increase it between one and a half to three and a half?

Speaker #5: Now you sort of cut it down to three. So which are some of those areas which did not really work according to your expectations?

Speaker #2: So that accelerates its becoming, you know, a long-term play in a way.

Speaker #4: This is not reclassification in any format, right?

Shilpa Phadnis: This is not reclassification in any format, right?

Jayesh Sanghrajka: No.

Speaker #2: No.

Speaker #4: Okay. Okay. One last thing, sir. On the status of hikes—you know, Infosys has not called that out yet. So where are you on that?

Shilpa Phadnis: Okay. One last thing, sir. On the status of hikes, Infosys has not called that out yet. Where are you on that? Secondly, also on forward deployed engineers, there's a lot of talk in the tech ecosystem about this, how difficult is it for a services company to sort of plug FDs into the existing workflows? There are several challenges that companies are facing.

Speaker #5: Number two is that would Infy ever at all at least in the near future, would you want the company to move into the AI infrastructure business, data center, something that HCL and TCS has already done?

Speaker #4: And secondly, also on forward deployed engineers, there's a lot of talk in the tech ecosystem about this. But how difficult is it for a services company to, you know, sort of plug FDEs into the existing workflows?

Speaker #5: And the last question is, what would you classify at least in your tenure as the most challenging period? Was it the COVID or was it the or is it the AI-led transformation for Infosys?

Speaker #4: There are several challenges that companies are facing.

Speaker #5: And Jayesh, one question on the margins. Once you obviously roll out the hikes, and with the growth projections sort of tapered now, do you think you would be able to maintain the 20 to 22% band at least for this year?

Speaker #3: Let me start with the second one. We'll come back to the first. On frontier engineers, we now have a very good plan, which has been put in place some time ago, to scale that up.

Salil Parekh: Let me start with the second one. We'll come back to the first. On frontier engineers, we now have a very good plan which has been put in place some time ago to scale that up. We have a lot of capability within Infosys which are doing similar work. We are making sure that it works in the way that the frontier engineer needs to work with clients today. We've set the objective of 6,000 to make sure that the teams can work with different clients to make the impact. We feel we have a good understanding of how that works because the capability is really the engineering plus the business context. That's something that Infosys was good at even before the AI wave of work had started. We are making sure that that becomes very much part of the future in that.

Avik Das: Jayesh, one question on the margins. Once you obviously roll out the hikes and with the growth projection sort of tapered now, do you think you would be able to maintain the 20% to 22% band at least for this year? Just wanted to know that. Thank you.

Speaker #5: Just wanted to know that. Thank you.

Speaker #3: We have a lot of capability within Infosys that is doing similar work. We are making sure that it works in the way that the frontier engineer needs to work with clients today.

Speaker #3: Let me start off on the first one. I think a little bit later, Jayesh can also add a bit of color I think on the macro, it's more I mean, what we see in the environment, you know, we had a sense that the macro was settling down.

Salil Parekh: Let me start off on the first one. I think, a little bit later, Jayesh can also add a bit of color. I think on the macro, it's more what we see in the environment. We had a sense that the macro was settling down, so we had a guidance where the upper end looked at maybe things would settle down in the H2. Things are a little bit more uneven, but at the same time, it could easily stabilize over time. We've kept the option, and we always have that ability because tech spending, discretionary spending can also come back if that happens. We are sharing more what we see today as opposed to a prediction on what is going to happen exactly in a certain time frame.

Speaker #3: We've set the objective of 6,000 to make sure that the teams can work with different clients to make the impact. We feel we have a good understanding of how that works because the capabilities are really the engineering plus the business context, and that's something that Infosys was good at even before the AI wave of work had started.

Speaker #3: So we had a guidance where the upper end looked at maybe things, you know, would settle down in the second half. Things are a little bit more uneven.

Speaker #3: But at the same time, it's not, you know, it could easily stabilize over time. So we've kept the option. And we always have that ability because tech spending discretionary spending can also come back if that happens.

Speaker #3: So we are not meaning we are sharing more what we see today as opposed to like a prediction of what is going to happen exactly in a certain time frame.

Speaker #3: And so we are making sure that that becomes very much part of the future in that. On the compensation increases, we will roll out compensation increases in October and January in two parts, and that's part of something internal that we have announced now.

Salil Parekh: On the compensation increases, we will roll out our compensation increases in October and January in two parts, that's part of something internal that we have announced now.

Speaker #3: On the data center piece, so in fact, we've internally reviewed what we want to do in terms of our balance sheet. We've had a discussion with the management team and also with our board.

Speaker #2: Yes. Most employees will receive an increase in October, while the senior employees will get it in January. Thank you, Shilpa. The next question is from Avik Das from Business Standard.

Jayesh Sanghrajka: Yeah. With most of the employees getting an increase in October, the senior employees will get it in January.

Salil Parekh: On the data center piece, so in fact, we've internally reviewed what we want to do in terms of our balance sheet. We've had a discussion with the management team and also with our board, and we have decided to not do anything in that space at this stage. What was the third one?

Speaker #3: And we have decided to not do anything in that space at this stage.

Rishi Basu: Thanks, Shilpa. The next question is from Avik Das from Business Standard.

Speaker #5: What was the third one?

Avik Das: Salil, good afternoon. Just three quick questions and one for Jayesh. You talked about how the macro perhaps hasn't sort of improved over the last three months that you perhaps would have wanted to. Just wanted to understand, which are some of those parts of the macro that led you to first to increase it between one and a half to three and a half. Now you sort of cut it down to three. Which are some of those areas which did not really work according to your expectations? Number two is that, would Infosys ever at all, at least in the near future, would you want the company to move into the AI infrastructure business, data centers, something that HCL and TCS has already done? The last question is: what would you classify, at least in your tenure, as the most challenging period?

Speaker #4: Good afternoon. Just three quick questions, and one for Jayesh. You talked about how the macro perhaps hasn't sort of improved over the last three months as you perhaps would have wanted it to.

Speaker #3: I think, you know, my focus in that is making sure that we are very much focused today on what we need to do for this part of the work that I have to finish.

Jayesh Sanghrajka: Margin.

Speaker #4: Just wanted to understand, which are some of those parts of the macro that led you to first increase it between one and a half to three and a half?

Salil Parekh: I think my focus in that is making sure that we are very much focused today on what we need to do for this part of the work that I have to finish. I'm very much sort of enjoying that, and we'll come to that at the right time in terms of the tenure and so on. On the margin, Jayesh will have it, but we will hold the guidance.

Speaker #3: I'm very much sort of enjoying that. And we'll come to that at the right time in terms of what was in terms of the tenure and so on.

Speaker #4: Now you’ve sort of cut it down to three. So, which are some of those areas that did not really work according to your expectations?

Speaker #4: Number two is that would Infy ever at all at least in the near future would you want the company to move into the AI infrastructure business data center something that HCL and TCS has already done?

Speaker #3: On the margin, Jayesh will have it. But we will hold the guidance.

Speaker #2: So at this point in time, we have given our guidance of 20 to 22%. If you look at our first quarter, we are at 20, 21.1%.

Speaker #4: And the last question is what would you classify at least in your tenure as the most challenging period? Was it the COVID or was it the or is it the AI-led transformation for Infosys?

Speaker #2: Right? If you look at puts and takes of where we are the currency will be a tailwind, you know, at least where we see today.

Jayesh Sanghrajka: At this point in time, we have given a guidance of 20% to 22%. If you look at our Q1, we are at 21.1%. If you look at puts and takes of where we are, the currency will be a tailwind, at least where we see today. Project Maximus is working well. If you look at last 3 year period, we have been consistently able to hold or improve our margins despite investment in business, whether it is AI, whether it is talent, or whether it is sales and marketing. We believe the project will continue to deliver value from pricing, from utilization, et cetera. That given, of course, we'll have headwind coming from the competition in the H2 of the year, but we are very confident at this point in time of the guidance band that we have given.

Avik Das: Was it the COVID or is it the AI-led transformation for Infosys? Jayesh, one question on the margins. Once you obviously roll out the hikes. With the growth projection sort of tapered now, do you think you would be able to maintain the 20% to 22% band at least for this year? Just wanted to know that. Thank you.

Speaker #2: Project Maximus is working well. If you look at last three-year period, we have been consistently able to hold or improve our margins despite investment in business, whether it is AI, whether it is talent, or whether it is sales and marketing.

Speaker #4: And Jayesh, one question on the margins. Once you obviously roll out the hikes, and with the growth projections sort of tapered now, do you think you would be able to maintain the 20 to 22% band at least for this year?

Speaker #2: And we believe the project will continue to deliver value from pricing, from, you know, utilization, et cetera. So that given of course, we'll have headwind coming from, you know, the compensation in the second half of the year.

Speaker #4: Just wanted to know that. Thank you.

Salil Parekh: Let me start off on the first one. I think a little bit later, Jayesh can also add a bit of color. I think on the macro, it's more what we see in the environment. We've had a sense that the macro was settling down, so we had a guidance where the upper end looked at maybe things would settle down in the H2. Things are a little bit more uneven, but at the same time, it could easily stabilize over time. We've kept the option, and we always have that ability because tech spending, discretionary spending can also come back if that happens. We are sharing more what we see today as opposed to a prediction on what is going to happen exactly in a certain time frame.

Speaker #3: Let me start off on the first one. I think a little bit later Jayesh can also add a bit of color. I think on the macro, it's more—I mean, what we see in the environment, you know, we had a sense that the macro was settling down.

Speaker #2: But we are very confident at this point in time of the guidance band that we have given. Thank you, Avik. The next question is from Haripriya Suresh from Reuters.

Speaker #3: So, we had a guidance where the upper end looked at maybe things, you know, would settle down in the second half. Things are a little bit more uneven, but at the same time, it's not, you know, it could easily stabilize over time.

Speaker #5: Good evening, gentlemen. One is I wanted to get some color on each of the verticals as well, which in financial services, retail has seen some sort of that hit this quarter as well.

Rishi Basu: Thank you, Avik. The next question is from Haripriya Suresh from Reuters.

Speaker #5: You know, and some of your peers have called out some percentage of AI deflation in their portfolio. I mean, obviously that's growth coming from AI, but also existing portfolios see some sort of deflation.

Haripriya Suresh: Good evening, gentlemen. One is, I wanted to get some color on each of the verticals as well, which in financial services, retail has seen some sort of head hit this quarter as well. Some of your peers have called out some percentage of AI deflation in their portfolio. Obviously, that's growth coming from AI, but also existing portfolios see some sort of deflation. If there's any number you can provide for that. Also, is outcome-based pricing becoming a larger part of your portfolio? Are there certain deals that tend to see more outcome-based pricing than others? If there's any kind of quantification you could do for that'd be very helpful.

Speaker #3: So we've kept the option, and we always have that ability, because tech spending—discretionary spending—can also come back if that happens. So we are not, meaning we are sharing more of what we see today, as opposed to a prediction of what is going to happen exactly in a certain time frame.

Speaker #5: If there's any number you can provide for that. And also, on these outcome-based pricing becoming a larger part of your portfolio, and there are other certain deals that are tend to see more outcome-based pricing than others.

Speaker #5: Is there any kind of quantification you could do for that? That'd be very helpful.

Speaker #3: On the data center piece — so, in fact, we've internally reviewed what we want to do in terms of our balance sheet. We've had a discussion with the management team and also with our board, and we have decided to not do anything in that space at this stage.

Salil Parekh: On the data center piece, in fact, we've internally reviewed what we want to do in terms of our balance sheet. We've had a discussion with the management team and also with our board. We have decided to not do anything in that space at this stage. What was the third one?

Speaker #3: I'll start on the industries, Jayesh will add a little bit. And then let me address the other one, which is on what we see on the outcome-based pricing and the compression piece that you mentioned.

Salil Parekh: I'll start on the industries. Jayesh will add a little bit, then let me address the other one, which is on what we see on the outcome-based pricing and the compression piece that you mentioned. On the industries, what we see right now is, for example, financial services. We see the growth in that part of our business will be higher than the average growth within the company. In energy utilities part of our business, we will see something similar. We still see, for example, in retail, some constraints in terms of the growth, we are not yet seeing the pickup in that. There might be other things that Jayesh will add. On the compression, I said in the past, we do see that in some places across our portfolio, we've not externally quantified that compression at this stage. Was there anything else?

Speaker #3: On the industries, what we see right now is, for example, financial services, we see the growth in that part of our business will be higher than the average growth within the company.

Speaker #4: What was the third one?

Jayesh Sanghrajka: Margin.

Salil Parekh: I think, my focus in that is making sure that we are very much focused today on what we need to do for this part of the work that I have to finish. I am very much sort of enjoying that and we will come to that at the right time in terms of the tenure and so on. On the margin, Jayesh will have it, we will hold the guidance.

Speaker #3: I think you know my focus in that is making sure that we are very much focused today on what we need to do for this part of the work that I have to finish.

Speaker #3: In energy utilities, part of our business, we will see something similar. We still see, for example, in retail, some constraints in terms of the growth.

Speaker #3: And we are not yet seeing the pickup in that. And there might be other things that Jayesh will add. On the compression, we absolutely had said in the past, we do see that in some places, across our portfolio.

Speaker #3: I'm very much sort of enjoying that, and we'll come to that at the right time in terms of what was, in terms of the tenure and so on.

Speaker #3: On the margin, Jayesh will have it, but we will hold the guidance.

Speaker #3: But we've not externally quantified that compression at this stage. Was there anything else? On outcome-based pricing, we see clients have a stronger interest in that.

Speaker #2: So at this point in time, we have given our guidance of 20 to 22%. If you look at our first quarter, we are at 21.1%.

Jayesh Sanghrajka: At this point in time, we have given a guidance of 20% to 22%. If you look at our Q1, we are at 21.1%. If you look at puts and takes of where we are, the currency will be a tailwind, at least where we see today. Project Maximus is working well. If you look at last three-year period, we have been consistently able to hold or improve our margins despite investment in business, whether it is AI, whether it is talent or whether it is sales and marketing. We believe the project will continue to deliver value from pricing, from utilization, et cetera. That's given. Of course, we will have headwind coming from the compensation in the H2 of the year, we are very confident at this point in time of the guidance band that we have given.

Speaker #2: Right. If you look at the puts and takes of where we are, the currency will be a tailwind, at least where we see it today.

Speaker #2: Project Maximus is working well. If you look at the last three-year period, we have been consistently able to hold or improve our margins despite investments and business—whether it is AI, whether it is talent, or whether it is sales and marketing—and we believe the project will continue to deliver value from pricing, from, you know, utilization, etc.

Speaker #3: But typically, it's not so much that it's become a large part of our activity, but there is definitely more discussions on it. And typically, when the investment needs are heavy for transformation, it becomes more part of that discussion.

Rishi Basu: Outcome-based pricing.

Salil Parekh: On outcome-based pricing, we see clients have a stronger interest in that, but typically, it's not so much that it's become a large part of our activity, but there is definitely more discussions on it. Typically, when the investment needs are heavy for transformation, it becomes more part of that discussion. It's not that we are shifting massively to it, but there is definitely more discussion on it. There is no particular type. It's more, I think, a function of other clients going through a transformation, and is there a need for some upfront investment which can then translate into a transformation, and then the outcome gives a benefit of that transformation.

Speaker #2: So, that given, of course we'll have headwind coming from, you know, the compensation in the second half of the year, but we are very confident at this point in time about the guidance band that we have given.

Speaker #3: But it's not that we are like shifting massively to it. But there is definitely more discussion on it. There is no particular type. It's more, I think, a function of other clients going through a transformation.

Speaker #4: Thank you, Avik. The next question is from Haripriya Suresh from Reuters.

Rishi Basu: Thank you, Avik. The next question is from Haripriya Suresh from Reuters.

Speaker #3: And is there a need for some, you know, upfront investment which can then translate into a transformation? And then the outcome gives a benefit of that transformation.

Speaker #5: Good evening, gentlemen. First, I wanted to get some color on each of the verticals as well, specifically in financial services. Retail has seen some sort of hit this quarter as well.

Haripriya Suresh: Good evening, gentlemen. One is, I wanted to get some color on each of the verticals as well within financial services. Retail has seen some sort of head hit this quarter as well. Some of your peers have called out some percentage of AI deflation in their portfolio. Obviously, that's growth coming from AI, also existing portfolios see some sort of deflation. If there's any number you can provide for that. Also, is outcome-based pricing becoming a larger part of your portfolio? Are there certain deals that tend to see more outcome-based pricing than others? Is there any kind of quantification you could do for that? That would be very helpful.

Speaker #5: You know, some of your peers have called out some percentage of AI deflation in their portfolio. I mean, obviously that's growth coming from AI, but also existing portfolios see some sort of deflation.

Speaker #2: Thanks, Haripriya. The next question is from sorry, so just to add to what Saleel was saying on segments, you know, financial services ensure both is going to both we expect to deliver higher than the company average going forward.

Speaker #5: If there's any number you can provide for that. And also, is outcome-based pricing becoming a larger part of your portfolio, and are there certain deals where you tend to see more outcome-based pricing than others?

Rishi Basu: Thanks, Haripriya. The next question is from.

Speaker #2: Or for the rest of the year. Manufacturing, while we had an impact coming from one of the clients, which we had called out last quarter as well, despite that manufacturing has grown very well at, you know, what, close to one and a half percent or slightly over one and a half percent.

Salil Parekh: Sorry.

Rishi Basu: Sorry.

Speaker #5: Is there any kind of quantification you could do for that? That would be very helpful.

Jayesh Sanghrajka: Just to add to what Salil was saying on segments. Financial services and insurance, both we expect to deliver higher than the company average going forward or for the rest of the year. Manufacturing, while we had an impact coming from one of the clients, which we had called out last quarter as well. Despite that, manufacturing has grown very well at close to 1.5% or slightly over 1.5%. I think that's commendable considering the headwind that the sector has seen. Life sciences, we will see benefit coming on back of the acquisition in healthcare and life sciences. Only two segments that continue to see challenges is communication and retail from that perspective. Just to add on the outcome-based pricing, that's one of the specific tracks within Project Maximus as well.

Speaker #3: I'll start on the industries; Jayesh will add a little bit. And then, let me address the other one, which is on what we see on the outcome-based pricing and the compression piece that you mentioned. On the industries, what we see right now is, for example, in financial services, we see the growth in that part of our business will be higher than the average growth within the company.

Salil Parekh: I'll start on the industries. Jayesh will add a little bit, then let me address the other one, which is on what we see on the outcome-based pricing and the compression piece that you mentioned. On the industries, what we see right now is, for example, financial services. We see the growth in that part of our business will be higher than the average growth within the company. In energy utilities part of our business, we will see something similar. We still see, for example, in retail, some constraints in terms of the growth and we are not yet seeing the pickup in that. There might be other things that Jayesh will add. On the compression, we absolutely, as said in the past, we do see that in some places across our portfolio. We've not externally quantified that compression at this stage. Was there anything else?

Speaker #2: So I think that's commendable considering the headwind that the sector has seen. Life sciences, we will see benefit coming on back of the acquisition in healthcare and life sciences.

Speaker #2: So only to segment that continue to see challenges is communication and retail. From that perspective. And just to add on the outcome-based pricing, that's one of the specific tracks within Project Maximus as well.

Speaker #3: In the energy utilities part of our business, we will see something similar. We still see, for example in retail, some constraints in terms of growth, and we are not yet seeing the pickup in that.

Speaker #2: So there is a leader at the organization level who is working with the all the segments and driving outcome-based pricing. You know, and we have a very specific focus on that.

Speaker #3: And there might be other things that Jayesh will add. On the compression, we absolutely have said in the past we do see that in some places across our portfolio, but we've not externally quantified that compression at this stage.

Speaker #1: Thanks, Haripriya. The next question is from Beena Parmar from the Economic Times.

Jayesh Sanghrajka: There is a leader at the organization level who is working with all the segments and driving outcome-based pricing. We have a very specific focus on that.

Speaker #5: Just a bit on the consolidation deals, the six consolidation deals, which spaces are these in? And how many of these are large deals? And secondly, you know, Infosys has lost some of the existing renewals.

Rishi Basu: Thanks, Haripriya. The next question is from Bina Parmar from The Economic Times.

Rishi Basu: Thanks, Haripriya. The next question is from Beena Parmar from The Economic Times.

Speaker #4: Was that anything else?

[Journalist] (The Economic Times): Just a bit on the consolidation deals, the six consolidation deals. Which spaces are these in, and how many of these are large deals? Secondly, Infosys has lost some of the existing renewals, at least three in the know. What are the factors that led to that? What are your reasons? On the guidance, also, if you could just extend a little bit on the color on why really, the upper limit was reduced. Do you see macroeconomic environment further worsening or do you see that conversations have been a little different from last quarter? Finally, Infosys looking at acquisitions and investments, which spaces will these be in? Lastly, what next for Salil Parekh?

Beena Parmar: Just a bit on the consolidation deals, the six consolidation deals. Which spaces are these in, and how many of these are large deals? Secondly, Infosys has lost some of the existing renewals, at least three in the know. What are the factors that led to that? What are your reasons? On the guidance, also, if you could just extend a little bit on the color on why really, the upper limit was reduced. Do you see macroeconomic environment further worsening or do you see that conversations have been a little different from last quarter? Finally, Infosys looking at acquisitions and investments, which spaces will these be in? Lastly, what next for Salil Parekh?

Speaker #3: On outcome-based pricing, we see clients have a stronger interest in that, but typically it's not so much that it's become a large part of our activity. But there are definitely more discussions on it, and typically, when the investment needs are heavy for transformation, it becomes more part of that discussion.

Jayesh Sanghrajka: Outcome-based pricing.

Speaker #5: Do you see macroeconomic environment further worsening or, you know, do you see that conversations have been a little different from last quarter?

Speaker #3: But it's not that we are shifting massively to it, but there is definitely more discussion on it. There is no particular type; it's more, I think, a function of other clients going through a transformation and whether there is a need for some upfront investment, which can then translate into a transformation, and then the outcome gives a benefit of that transformation.

Speaker #6: For me, you know, I'm still looking at acquisitions and investments and which spaces will these be in. And lastly, what next for Saleel Parekh?

Haripriya Suresh: Are there some types that tend to have?

Salil Parekh: There is no particular type. It's more, I think, a function of are there clients going through a transformation, and is there a need for some upfront investment which can then translate into a transformation, and then the outcome gives a benefit of that transformation.

Speaker #3: So on the first one, I think the consolidation deals, the ones I was referring to, all in the large deals. So those are not the ones.

Speaker #3: So we were only saying like within the large deals, we see those many consolidation deals. We are not specifying like in which areas, but these are typically you know, in the bigger industries that we operate in.

Salil Parekh: On the first one, I think the consolidation deals, the ones I was referring to, all in the large deals. Those are not the ones. We were only saying within the large deals, we see those many consolidation deals. We are not specifying in which areas, but these are typically in the bigger industries that we operate in. There's big companies who are looking to consolidate across partners. That's where we've seen. We're not specifying which one where we see that. What was the other one, sorry?

Speaker #4: Thanks, Haripriya. The next question is from Sorry.

Rishi Basu: Thanks, Haripriya. The next question is from-

Jayesh Sanghrajka: Sorry.

Avik Das: Sorry.

Speaker #2: So just to add to what Sandeep was saying on segments you know financial services ensure both is going to both we expect to deliver higher than the company average going forward or for the rest of the year.

Jayesh Sanghrajka: Just to add to what Salil was saying on segments. Financial services and HR, both we expect to deliver higher than the company average going forward or for the rest of the year. Manufacturing, while we had an impact coming from one of the clients which we had called out last quarter as well. Despite that, manufacturing has grown very well at close to 1.5% or slightly over 1.5%. I think that's commendable considering the headwind that the sector has seen. Life sciences, we will see benefit coming on back of the acquisition in healthcare and life sciences. Only two segments that continue to see challenges is communication and retail.

Speaker #3: And there's big companies who are looking to consolidate across partners. And that's where we've seen it. But we're not specifying like which one where we see that.

Speaker #2: Manufacturing, while we had an impact coming from one of the clients—which we had called out last quarter as well—despite that, manufacturing has grown very well at, you know, close to one and a half percent or slightly over one and a half percent.

Speaker #3: What was the other one? Sorry. Yeah, so we don't comment in any specific deals in the environment in any case. However, we are quite clear that our focus overall is to make sure that we're working with clients on projects and contracts that make economic sense to us.

Speaker #2: So I think that's commendable, considering the headwind that the sector has seen. Life sciences, we will see benefit coming on the back of the acquisition.

[Journalist] (The Economic Times): Loss of renewals.

Beena Parmar: Loss of renewals.

Salil Parekh: Yeah. We don't comment on any specific deals in the environment. In any case, however, we are quite clear that our focus overall is to make sure that we're working with clients on projects and contracts that make economic sense to us. No specific comment beyond that. No other specific comment. Beyond that, we want to make sure that economically it makes sense to us in some of these situations as well.

Speaker #2: Healthcare and life sciences, though, are the only two segments that continue to see challenges—communication and retail. From that perspective, and just to add on, the outcome-based pricing, that's one of the specific tracks within Project Maximus as well.

Speaker #3: But no specific comment beyond that. So no other specific comment beyond that. We want to make sure that, you know, economically, it makes sense to us in some of these situations as well.

Salil Parekh: From that perspective. Just to add on the outcome-based pricing, that's one of the specific tracks within Project Maximus as well. There is a leader at the organization level who is working with all the segments and driving outcome-based pricing. We have a very specific focus on that.

Speaker #2: So there is a leader at the organization level who is working with all the segments and driving outcome-based pricing, you know, and we have a very specific focus on that.

Speaker #3: The guidance, I'll also request Jayesh. I've also said a few things, but he'll add to it. What we see is given where we were in Q1 with the outcome that we had with one of the delivery client decisions that I shared, we want to make sure that we have a guidance that reflects all of that.

Speaker #4: Thanks, Haripriya. The next question is from Bina Parmar from The Economic Times.

Rishi Basu: Thanks, Haripriya. The next question is from Bina Parmar from The Economic Times.

Rishi Basu: Guidance.

Salil Parekh: The guidance, I'll also request Jayesh. I've also said a few things, but he'll add to it. What we see is, given where we were in Q1 with the outcome that we had with one of the delivery client decisions that I shared. We want to make sure that we have a guidance that reflects all of that. Looking at the changes, whether it's in volumes, whether it's in some level of pricing mix, that's how we've built the guidance. As we go through the year, we typically reduce the band as well. Instead of two points, it's now like a one and a half point band as we go through the quarters, and that's how we've built the guidance. Jayesh will add to it.

Speaker #5: Just a bit on the consolidation deals—the six consolidation deals—which spaces are these in, and how many of these are large deals? And secondly, you know Infosys has lost some of the existing renewals.

Bina Parmar: Just a bit on the consolidation deals, the six consolidation deals. Which spaces are these in, and how many of these are large deals? Secondly, Infosys has lost some of the existing renewals, at least three in the know. What are the factors that led to that? What are your reasons? On the guidance also, if you could just extend a little bit on the color on why really the upper limit was reduced. Do you see macroeconomic environment further worsening or do you see that conversations have been a little different from last quarter? My interest is looking at acquisitions and investments and which spaces will these be in. Lastly, what next for Salil Parekh?

Speaker #3: And then looking at the changes whether it's in volumes, whether it's in some level of pricing mix, that's how we built the guidance as we go through the year.

Speaker #5: You know, at least three in the know. What are the factors that led to that? What are your, you know, reasons? On the guidance also, if you could just extend a little bit on the color on why, really, you know, the upper limit was reduced. Do you see the macroeconomic environment further worsening or, you know, do you see that conversations have been a little different from last quarter?

Speaker #3: We typically reduce the band as well. So instead of two points, it's now like a one and a half point band as we go through the quarters.

Speaker #3: And that's how we build the guidance. Jayesh will add to it to your other question. I think for me, really, the attention is on what we are driving through for this year, making sure that we continue to lead in AI, making sure that we continue to win market share.

Speaker #6: For me, you know, I'm still looking at acquisitions.

Speaker #5: And investments—and which spaces will these be in? And lastly, what's next for Sandeep Parekh?

Speaker #3: So, on the first one, I think the consolidation deals—the ones I was referring to—all are in the large deals. So those are the ones; we were only saying, like, within the large deals, we see that many consolidation deals.

Salil Parekh: To your other question, I think for me, really, the attention is on what we are driving through for this year, making sure that we continue to lead in AI, making sure that we continue to win market share, and making sure that we have an absolutely smooth transition. I very much enjoy what I'm doing, and I'm sure once all of this is done, I'll have time to focus on what's next. Acquisitions, we are continuing to look at acquisitions. We have a good pipeline in that. We did the acquisition on life sciences, healthcare. We did the acquisition on insurance. We have other areas that we have an interest in. We have a view in geography that we are looking at some geographies where we could do more work, and those are good geographies. We could do more in some of the other industries as well.

Speaker #3: And making sure that we have an absolutely smooth transition. I very much enjoy what I'm doing. And I'm sure once all of this is done, I'll have time to focus on what's next.

Speaker #3: We are not specifying, like, in which areas, but these are typically, you know, in the bigger industries that we operate in. And there are big companies who are looking to consolidate across partners.

Speaker #3: Acquisitions, we are continuing to look at acquisitions we have a good pipeline in that. We did the acquisition on healthcare, life sciences, healthcare. We did the acquisition on insurance.

Speaker #3: And that's where we've seen it. But we're not specifying, like, which one where we see that.

Speaker #3: We have other areas that we have an interest in. So we have a view in geography that we are looking at some geographies where we could do more work.

Speaker #4: What was the other one?

Bina Parmar: Loss from renewals.

Speaker #5: Lost some renewals.

Speaker #3: Yeah, so we don't comment on any specific deals in the environment in any case. However, we are quite clear that our focus overall is to make sure that we are working with clients on projects and contracts that make economic sense to us.

Salil Parekh: Yeah. We don't comment on any specific deals in the environment in any case. However, we are quite clear that our focus overall is to make sure that we're working with clients on projects and contracts that make economic sense to us, no specific comment beyond that. No other specific comment. Beyond that, we want to make sure that economically it makes sense to us in some of these situations as well.

Speaker #3: Those are good geographies. We could do more in some of the other industries as well. For example, we've seen good we're not doing anything, but we've seen that there could be things we could do in telco, in financial services a little bit more, in healthcare.

Speaker #3: But no specific comment beyond that. So, no other specific comment beyond that. We want to make sure that, you know, economically it makes sense to us in some of these situations as well.

Speaker #3: There are areas that we could do which are more service line oriented. We think there's good traction in where AI can be leveraged into processes, and agent building.

Rishi Basu: Guidance.

Speaker #4: Guidance.

Speaker #3: For the guidance, I'll also request Jayesh—I've already said a few things, but he'll add to it. What we see is, given where we were in Q1 and the outcome that we had with one of the delivery client decisions that I shared, we want to make sure that we have a guidance that reflects all of that.

Salil Parekh: The guidance, I'll also request Jayesh. I've also said a few things, but he'll add to it. What we see is given where we were in Q1 with the outcome that we had with one of the delivery client decisions that I shared. We want to make sure that we have a guidance that reflects all of that. Looking at the changes, whether it's in volumes, whether it's in some level of pricing mix, that's how we've built the guidance. As we go through the year, we typically reduce the band as well. Instead of two points, it's now like a one and a half point band as we go through the quarters. That's how we've built the guidance. Jayesh will add to it to your other question.

Speaker #3: But there's a pipeline, and we will continue with the acquisitions.

Speaker #2: Just to add to what Saleel was saying, and I'll come to guidance in a bit. On the consolidation deal of the six deals that we have won, it's a $700 million of net new business that we have won.

Speaker #2: So we have seen positive impact coming out of the consolidation deal, and we have been on the positive side of the market share. On the guidance, you know, whatever happens in Q1, typically has a cascading impact on the whole year.

Jayesh Sanghrajka: I'll come to guidance in a bit. On the consolidation deal, of the six deals that we have won, it is a INR 700 million of net new business that we have won. We have seen a positive impact coming out of the consolidation deal, and we have been on the positive side of the market share. On the guidance, whatever happens in Q1 typically has a cascading impact on the whole year. While we will see benefit coming out of the acquisition that we completed in Q1, the one-off impact that we had in Q1, the softer than expected volume and price that we got in Q1 will have a cascading effect on the rest of the year in terms of guidance.

Speaker #3: And then, looking at the changes—whether it's in volumes, whether it's in some level of pricing mix—that's how we built the guidance. As we go through the year, we typically reduce the band as well.

Speaker #2: While we will see benefit coming out of the acquisition that we completed in Q1, the one-off impact that we had in Q1, the softer than expected volume and price that we got in Q1 will have a cascading effect on the rest of the year in terms of guidance.

Speaker #3: So in sort of two points it's now like a one and a half point band as we go through the quarters. And that's how we build the guidance.

Speaker #3: Jayesh will add to your other question. I think for me, really, the attention is on what we are driving through for this year, making sure that we continue to lead in AI, making sure that we continue to win market share.

Speaker #2: In terms of the large deal that we talked about with the European client when we decided to not bid beyond a point because it did not make commercial sense, our economic sense of Saleel said that will have an additional impact in Q4 as the deal comes to a closure in December.

Salil Parekh: I think for me, really, the attention is on what we are driving through for this year, making sure that we continue to lead in AI, making sure that we continue to win market share, and making sure that we have an absolutely smooth transition. I very much enjoy what I'm doing, and I'm sure once all of this is done, I'll have time to focus on what's next. Acquisitions, we are continuing to look at acquisitions. We have a good pipeline in that. We did the acquisition on life sciences healthcare. We did the acquisition on insurance. We have other areas that we have an interest in. We have a view in geography that we are looking at some geographies where we could do more work, and those are good geographies. We could do more in some of the other industries as well.

Jayesh Sanghrajka: In terms of the large deal that we talked about with the European client, where we decided to not bid beyond a point because it did not make commercial sense or economic sense, as Salil said, that will have an additional impact in Q4 as the deal comes to a closure in December. That is also baked in our guidance. If you compare to last year, we have additional headwinds coming from the lower on-site mix, as I called out in the last quarter, because of our conscious decision of de-risking our business model. The deals that we lost in last quarter from the same European manufacturing client, that impact, which is baked in the original guidance as well. All of this cumulatively results in our guidance.

Speaker #2: So that is also baked in in a guidance. And if you compare to last year, we have additional headwinds coming from, you know, the lower on-site mix, as I called out in the last quarter.

Speaker #3: And making sure that we have an absolutely smooth transition. I very much enjoy what I'm doing, and I'm sure once all of this is done, I'll have time to focus on what's next.

Speaker #2: Because of our conscious decision of de-risking our business model, the deal that we lost in the last quarter from the same European manufacturing client and that impact, which was baked in the original guidance as well.

Speaker #3: Acquisitions: we are continuing to look at acquisitions; we have a good pipeline in that. We did the acquisition on healthcare, life sciences—healthcare. We did the acquisition on insurance.

Speaker #2: So all of this cumulatively results in our guidance. There are multiple models that lead to the lower end and the upper end of the guidance.

Speaker #3: We have other areas that we have an interest in. So we have a view in geography, where we are looking at some geographies where we could do more work.

Speaker #2: And that's how the guidance is baked in.

Speaker #1: Thank you. The next question is from Sanjana from the Hindu Business Line.

Jayesh Sanghrajka: There are multiple models that lead to the lower end and the upper end of the guidance, and that's how the guidance is baked in.

Speaker #4: Good evening, gentlemen. Just two questions. Coming to Rupee depreciation, how much of a tailwind has that provided to your margins? You know, in Q1 or going ahead, how do you see that panning out?

Speaker #3: Those are good geographies. We could do more in some of the other industries as well. For example, we've seen good— we're not doing anything, but we've seen that there could be things we could do in telco, in financial services, and a little bit more in healthcare.

Rishi Basu: Thank you. The next question is from Sanjana from The Hindu Business Line.

Salil Parekh: For example, we're not doing anything, but we've seen that there could be things we could do in telco and financial services, a little bit more in healthcare. There are areas that we could do which are more service line oriented. We think there's good traction in where AI can be leveraged into processes and agent building. There's a pipeline, and we will continue with the acquisitions. Just to add to what Salil was saying, and I'll come to guidance in a bit. On the consolidation deal of the six deals that we have won, it's a $700 million of net new business that we have won. We have seen positive impact coming out of the consolidation deal, and we have been on the positive side of the market share. On the guidance, whatever happens in Q1 typically has a cascading impact on the whole year.

[Company Representative] (The Hindu Business Line): Good evening, gentlemen. Just two questions. Coming to rupee depreciation, how much of a tailwind has that provided to your margins in Q1, or going ahead, how do you see that panning out? The other one is, how is AI improving, or what kind of impact does it have on your employee productivity, and how is this affecting the revenue per employee metric? Just these two questions. Thanks.

Sanjana B: Good evening, gentlemen. Just two questions. Coming to rupee depreciation, how much of a tailwind has that provided to your margins in Q1, or going ahead, how do you see that panning out? The other one is, how is AI improving, or what kind of impact does it have on your employee productivity, and how is this affecting the revenue per employee metric? Just these two questions. Thanks.

Speaker #4: And the other one is, how is AI improving or what kind of impact does it have on your employee productivity? And how is this affecting the revenue per employee metric?

Speaker #3: There are areas that we could do which are more service-line oriented. We think there's good traction in where AI can be leveraged into processes and agent building.

Speaker #4: Just these two questions, thank you.

Speaker #2: I'll start on the second one, and Jayesh will come on the first. So we have seen if you look at not this quarter, but the previous several quarters, we were a good improvement in productivity, revenue productivity.

Speaker #3: So, there is a pipeline, and we will continue with the acquisitions.

Salil Parekh: I'll start on the second one, and Jayesh will come on the first. We have seen, if you look at not this quarter, but the previous several quarters, we've had a good improvement in productivity, revenue productivity. We, generally speaking, see overall that there is a benefit from that productivity coming. Having said that, we are recruiting. We recruited last year 20,000 college graduates. This year we have a plan to recruit 20,000 college graduates. We've already done over 4,000 in Q1. Equally, we see that there is a productivity benefit that will continue to come through. Of course, you also have pricing issues within the market, so those sometimes balance out. If I look back, not this quarter, but the previous several quarters, we've seen a continuous sort of expansion of that.

Speaker #2: We are generally speaking see overall that there is a benefit from that productivity coming. Having said that, we are recruiting, we are recruited last year 20,000 college graduates.

Speaker #2: Just to add to what Sandeep was saying—and I'll come to guidance in a bit—on the consolidation deal: of the six deals that we have won, it's $700 million of net new business that we have won.

Speaker #2: So, we have seen positive impact coming out of the consolidation deal, and we have been on the positive side of the market share.

Speaker #2: This year we have a plan to recruit 20,000 college graduates. We've already done over 4,000 in the first quarter. But equally, we see that there is a productivity benefit that will continue to come through.

Speaker #2: On the guidance, you know, whatever happens in Q1 typically has a cascading impact on the whole year. While we will see benefit coming out of the acquisition that we completed in Q1, the one-off impact that we had in Q1—the softer than expected volume and price that we got in Q1—will have a cascading effect on the rest of the year in terms of guidance.

Salil Parekh: While we will see benefit coming out of the acquisition that we completed in Q1, the one-off impact that we had in Q1, the softer than expected volume and price that we got in Q1 will have a cascading effect on the rest of the year in terms of guidance. In terms of the large deal that we talked about with the European client where we decided to not bid beyond a point because it did not make commercial sense

Speaker #2: Then, of course, you also have pricing issues within the market. So those sometimes balance out. But if I look back, not this quarter, but the previous several quarters, we've seen a continuous sort of expansion of that.

Speaker #2: In terms of the large deal that we talked about with the European client, we decided not to bid beyond a certain point because, as Sandeep said, it did not make commercial or economic sense. That will have an additional impact in Q4, as the deal comes to a closure in December.

Speaker #3: And on Rupee depreciation, you know, every one person change and the currency or depreciation in dollar typically gives you anywhere between 15 to 17 basis points on margin.

Jayesh Sanghrajka: Economic sense, as Salil said, that will have an additional impact in Q4 as the deal comes to a closure in December. That is also baked in our guidance. If you compare to last year, we have additional headwinds coming from the lower on-site mix, as I called out in the last quarter, because of our conscious decision of de-risking our business model. The deals that we lost in last quarter from the same European manufacturing client, and that impact, which is baked in the original guidance as well. All of this cumulatively results in our guidance. There are multiple models that lead to the lower end and the upper end of the guidance, and that's how the guidance is baked in.

Speaker #3: But the important thing to note also is whenever dollar appreciates against rupee, it generally appreciates against most other currency also. And we have roughly 45% of revenue coming from non-US geography.

Jayesh Sanghrajka: On rupee depreciation, every 1% change in the currency or depreciation in dollar typically gives you anywhere between 15 to 17 basis points on margin. The important thing to note also is whenever dollar appreciates against rupee, it generally appreciates against most other currency also. We have roughly 45% of revenue coming from non-US geography, and that kind of offsets some part of the rupee depreciation benefit.

Speaker #2: So that is also baked into our guidance. And if you compare to last year, we have additional headwinds coming from, you know, the lower onsite mix, as I called out in the last quarter.

Speaker #3: And you know, that kind of offsets some part of the rupee depreciation benefit.

Speaker #2: Because of our conscious decision to de-risk our business model, the deal that we lost in the last quarter—from the same European manufacturing client—and that impact, which was baked into the original guidance as well.

Speaker #1: Thank you. The next question is from Uma Kannan from Deccan Herald.

Speaker #4: Good evening, gentlemen. With the rise in security incidents around autonomous AI agents and recent breach at model hosting platform, it's about OpenAI hack. How are you updating your approach to safety and security?

Speaker #2: So, all of this cumulatively results in a guidance. There are multiple models that lead to the lower end and the upper end of the guidance, and that's how the guidance is baked in.

Rishi Basu: Thank you. The next question is from Uma from Deccan Herald.

Rishi Basu: Thank you. The next question is from Uma Kannan from Deccan Herald.

[Company Representative] (Deccan Herald): Good evening, gentlemen. With the rise in security incidents around autonomous AI agents and recent breach at model hosting platform, it's about OpenAI hack. How are you updating your approach to safety and security? Just adding on to it, using cross-domain network. Is it not a risk for your client database, as AI tools will have full access to it? Also, tell us about the guardrails you have put in place for AI systems.

Uma Kannan: Good evening, gentlemen. With the rise in security incidents around autonomous AI agents and recent breach at model hosting platform, it's about OpenAI hack. How are you updating your approach to safety and security? Just adding on to it, using cross-domain network. Is it not a risk for your client database, as AI tools will have full access to it? Also, tell us about the guardrails you have put in place for AI systems.

Speaker #4: Just adding on to it, using cross-domain network, is it not a risk for your client database as AI tools will have full access to it?

Speaker #1: Thank you. The next question is from Sanjana from The Hindu Business Line.

Rishi Basu: Thank you. The next question is from Sanjana from The Hindu Business Line.

Speaker #5: Good evening, gentlemen. Just two questions. Coming to rupee depreciation, how much of a tailwind has that provided to your margins? In Q1 or going ahead, how do you see that panning out?

[Company Representative] (The Hindu Business Line): Good evening, gentlemen. Just two questions. Coming to rupee depreciation, how much of a tailwind has that provided to your margins in Q1 or going ahead, how do you see that panning out? The other one is, how is AI improving, or what kind of impact does it have on your employee productivity, and how is this affecting the revenue per employee metric? Just these two questions. Thanks.

Speaker #4: And also tell us about the guardrails you have put in place for AI systems.

Speaker #2: So on the cyber, I think what we have done is made sure that, for example, when there was a whole discussion, some time ago with Mythos, we had worked with the previous model Opus 4.7, made sure that we got an understanding of some of the security protocols beyond that.

Speaker #5: And the other one is, how is AI improving or what kind of impact does it have on your employee productivity, and how is this affecting the revenue per employee metric?

Salil Parekh: On the cyber, I think what we have done is made sure that, for example, when there was a whole discussion some time ago with Mythos, we had worked with the previous model, Opus 4.7, made sure that we got an understanding of some of the security protocols beyond that, and built an approach that enabled our clients to have an understanding of the vulnerability and how to protect against it. That's some work that we are doing with several clients. Our approach across cyber encompasses that. Related to the point that you made, I think each client environment has to have that sort of a cyber defense built, and we have a way to support our clients when we work with them on the cyber area beyond working just on the foundation model area. Our own approach to cyber within the Infosys incorporates that as well.

Speaker #5: Just these two questions.

Speaker #3: I'll start on the second one, and Jayesh will come on the first. So, we have seen, if you look at not this quarter but the previous several quarters, we were seeing a good improvement in revenue productivity.

Speaker #2: And built an approach that enabled our clients to have an understanding of the vulnerability and how to protect against it. That some work that we are doing with several clients.

Speaker #3: Generally speaking, we see overall that there is a benefit from that productivity coming. Having said that, we are recruiting. We recruited last year 20,000 college graduates; this year we have a plan to recruit 20,000 college graduates.

Speaker #2: So our approach across cyber encompasses that related to the point that you made. I think each client environment has to have that sort of a cyber defense build.

Speaker #3: We've already done over 4,000 in the first quarter. But equally, we see that there is a productivity benefit that will continue to come through.

Speaker #2: And we have a way to support our clients when we work with them on the cyber area, beyond working just on the foundation model area.

Speaker #3: Then, of course, you also have pricing issues within the market, so those sometimes balance out. But if I look back—not this quarter, but the previous several quarters—we've seen a continuous sort of expansion of that.

Speaker #2: Our own approach to cyber within the Infosys incorporates that as well. And then that translates to like when we do work for our clients or when we do work for our clients through our security operations centers and so on.

Speaker #4: And on rupee depreciation, you know every 1% change in the currency, or depreciation in the dollar, typically gives you anywhere between 15 to 17 basis points on margin.

Speaker #2: That's broadly the approach we have.

Speaker #4: So just one more question. You spoke about acquisition plans. One of your peers has invested in Indian AI firms. So do you have plans to invest in especially in Indian AI firms?

Salil Parekh: That translates to when we do work for our clients or when we do work for our clients through our security operations centers and so on. That's broadly the approach we have.

Speaker #4: But the important thing to note also is, whenever the dollar appreciates against the rupee, it generally appreciates against most other currencies also. And we have roughly 45 percent of revenue coming from non-US geographies.

[Company Representative] (Deccan Herald): Just one more question. You spoke about acquisition plans. One of your peers has invested in Indian AI firms. Do you have plans to invest, especially in Indian AI firms?

Speaker #2: So we generally speaking have a view on what we have like innovation fund, which invests in companies which are in very early stage and where we don't have essentially majority interest.

Uma Kannan: Just one more question. You spoke about acquisition plans. One of your peers has invested in Indian AI firms. Do you have plans to invest, especially in Indian AI firms?

Speaker #4: And you know, that kind of offsets some part of the rupee depreciation benefit.

Speaker #1: Thank you. The next question is from Uma Kannan from Deccan Herald.

Rishi Basu: Thank you. The next question is from Uma Kannan from Deccan Herald.

Salil Parekh: We, generally speaking, have a view on what we have, innovation fund, which invests in companies which are in very early stage and where we don't have essentially majority interest. We have a small minority interest in that. More from the perspective of seeing if that early or new technology can be deployed across our client base or can be leveraged in some way. That's the way the innovation fund is working. We have several investments into that over the past years, a lot into data and analytics, but now in many other technologies. In that light, we will look at all opportunities that are there. Without specifically saying yes or no to what you're suggesting, but in that broad context of the innovation fund, we'll look at it.

Speaker #5: Good evening, gentlemen. With the rise in security incidents around autonomous AI agents and the recent breach at the model hosting platform—it's about the OpenAI hack—how are you updating your approach to safety and security?

Uma Kannan: Good evening, gentlemen. With the rise in security incidents around autonomous AI agents and recent breach at model hosting platform, it's about OpenAI hack. How are you updating your approach to safety and security? Adding on to it, using cross-domain network. Is it not a risk for your client database as AI tools will have full access to it? Also, tell us about the guardrails you have put in place for AI systems.

Speaker #2: We have a small minority interest in that. More from the perspective of seeing if that early or new technology can be deployed across our client base or can be leveraged in some way.

Speaker #5: Just adding on to it, using a cross-domain network—is it not a risk for your client database, as AI tools will have full access to it?

Speaker #2: So that's like the way the innovation fund is working. And we have several investments into that over the past years, a lot into data and analytics.

Speaker #5: And also, tell us about the guardrails you have put in place for AI systems.

Speaker #2: But now in many other technologies. So in that light, we will look at all opportunities that are there. Without specifically saying yes or no to what you're suggesting, but in that broad context of the innovation fund, we'll look at it.

Speaker #3: So on the cyber, I think what we have done is made sure that, for example, when there was a whole discussion some time ago with Mythos, we had worked with the previous model, Opus 4.7, made sure that we got an understanding of some of the security protocols beyond that, and built an approach that enabled our clients to have an understanding of the vulnerability and how to protect against it.

Salil Parekh: On the cyber, I think what we have done is made sure that, for example, when there was a whole discussion some time ago with Claude Mythos, we had worked with the previous model, Claude Opus 4.7, made sure that we got an understanding of some of the security protocols beyond that, and built an approach that enabled our clients to have an understanding of the vulnerability and how to protect against it. That's some work that we are doing with several clients. Our approach across cyber encompasses that. Related to the point that you made, I think each client environment has to have that sort of a cyber defense built, and we have a way to support our clients when we work with them on the cyber area beyond working just on the foundation model area.

Speaker #1: Thanks, Uma. The next question is from Rohit Chintapalli from Business World.

Speaker #3: Hi, Salim. Give us an idea about the large deal TCV was about 3.6 billion dollars with 61% net new. How was this how much of this pipeline was tied to agentic AI and Topaz?

Rishi Basu: Thanks, Uma. The next question is from Rohit Chintapalli from Businessworld.

Rishi Basu: Thanks, Uma. The next question is from Rohit Chintapali from Businessworld.

Rohit Chintapalli: Hi, Salil. Give us an idea about the large deal TCV was about INR 3.6 billion with 61% net new. How much of this pipeline was tied to agentic AI and Topaz? The second part of the question is, what's the typical time lag when it comes to converting this TCV signing to kind of AI-led deals, the recognition of these AI deals?

Rohit Chintapali: Hi, Salil. Give us an idea about the large deal TCV was about INR 3.6 billion with 61% net new. How much of this pipeline was tied to agentic AI and Topaz? The second part of the question is, what's the typical time lag when it comes to converting this TCV signing to kind of AI-led deals, the recognition of these AI deals?

Speaker #3: And the second part of the question is, what's the typical time lag when it comes to converting this TCV signing to kind of, you know, AI-led deals?

Speaker #3: That's some work that we are doing with several clients. So our approach across cyber encompasses that. Related to the point that you made, I think each client environment has to have that sort of a cyber defense built, and we have a way to support our clients when we work with them on the cyber area, beyond working just on the foundation model area.

Speaker #3: The recognition of these AI deals.

Speaker #2: So what has happened today with clients' discussions is almost every discussion has some element of AI and of Topaz fabric because Topaz fabric is like a foundational thing many clients come, use it here, experiment with it, and are using it.

Salil Parekh: What has happened today with clients' discussions is almost every discussion has some element of AI and of Topaz Fabric, because Topaz Fabric is like a foundational thing. Many clients come, use it here, experiment with it, and are using it. We use Topaz across all of the work we are doing. It's not like the total TCV is for AI, but without that, we are not able to participate because that's integral to the work that we're doing. The conversion is the same in the sense of when the deals are signed, typically, depending on the type of deals. If there are deals where you have some level of transfer consolidation that ramp up pretty quickly. If there are some deals which have a transformation and that activity starts, the deals happen.

Speaker #3: Our own approach to cyber within Infosys incorporates that as well, and then that translates to when we do work for our clients, or when we do work for our clients through our security operations centers, and so on.

Salil Parekh: Our own approach to cyber within Infosys incorporates that as well, and then that translates to when we do work for our clients or when we do work for our clients through our security operation centers and so on. That's broadly the approach we have.

Speaker #2: And we use Topaz across all of the work we are doing. So it's not like the total TCV is for AI, but it is without that, you are not able we are not able to participate because that's integral to the work that we're doing.

Speaker #3: That's broadly the approach we have.

Speaker #5: So just one more question. You spoke about acquisition plans. One of your peers has invested in an Indian AI firm. So do you have plans to invest, you know, especially in Indian AI firms?

Uma Kannan: Just one more question. You spoke about acquisition plans. One of your peers has invested in Indian AI firms. Do you have plans to invest, especially in Indian AI firms?

Speaker #2: The conversion is the same in the sense of when the deals are signed typically depending on the type of deals. If there are deals where I have some level of transfer consolidation, that ramp up pretty quickly.

Speaker #3: So, generally speaking, we have a view on what we have, like the Innovation Fund, which invests in companies that are in a very early stage and where we don't have, essentially, majority interest—we have a small minority interest in that.

Salil Parekh: We, generally speaking, have a view on what we have, like, innovation fund which invests in companies which are in very early stage and where we don't have essentially majority interest. We have a small minority interest in that. More from the perspective of seeing if that early or new technology can be deployed across our client base or can be leveraged in some way. That's the way the innovation fund is working. We have several investments into that over the past years, a lot into data and analytics, but now in many other technologies. In that light, we will look at all opportunities that are there. Without specifically saying yes or no to what you're suggesting, but in that broad context of the innovation fund, we'll look at it.

Speaker #2: If there are some deals which have a transformation, then that activity starts and then the deals happen. So it's not like one thing for all the deals, but it's the similar thing of what we have seen over the past several quarters.

Speaker #3: More from the perspective of seeing if that early or new technology can be deployed across our client base, or can be leveraged in some way.

Speaker #2: It's not like suddenly the TCV has come and the ramp up has not happened for a long period and so on.

Salil Parekh: It's not like one thing for all the deals, but it's the similar thing of what we have seen over the past several quarters. It's not like suddenly the TCV has come and the ramp-up has not happened for a long period and so on.

Speaker #3: Also, on the transition, of course, does this transition all about strategic continuity? How should investors kind of read into it? What do you want to see?

Speaker #3: So that's the way the Innovation Fund is working, and we have several investments into that. Over the past years, a lot has gone into data and analytics, but now into many other technologies as well.

Speaker #3: Yeah.

Speaker #2: So we have well-defined AI strategy today. We've looked at like the hexagon with the six areas of the addressable market. We are seeing good growth.

Rohit Chintapalli: On the transition, of course, does this transition all about strategic continuity? How should investors kind of read into it? What do you want to see? Yeah.

Speaker #3: So, in that light, we will look at all opportunities that are there, without, you know, specifically saying yes or no to what you're suggesting. But in that broad context of the Innovation Fund, we'll look at it.

Rohit Chintapali: On the transition, of course, does this transition all about strategic continuity? How should investors kind of read into it? What do you want to see? Yeah.

Salil Parekh: There, we have a well-defined AI strategy today. We've looked at the hexagon with the six areas of the addressable market. We are seeing good growth of the 8% of our revenue, the double-digit quarter-on-quarter growth. That's the strategy we will continue with as we go through into the next phase. Of course, I'll work with Dash very closely on the transition as well.

Speaker #1: Thanks, Uma. The next question is from Rohit Chintapalli from Business World.

Rishi Basu: Thanks, Uma. The next question is from Rohit Chintapalli from Businessworld.

Speaker #2: The 8% of our revenue double digit quarter on quarter growth. So that's the strategy we will continue with as we go through into the next phase.

Speaker #6: Hi Salim. Give us an idea about the large deal TCV was about 3.6 billion dollars with 61 percent net new. How was this how much of this pipeline was tied to agentic AI and Topaz and the second part of the question is how what's the typical time lag when it comes to converting this TCV signing to kind of you know AI led deals the recognition of these AI deals?

Rohit Chintapalli: Hi, Salil. Give us an idea about the large deal TCV was about $3.6 billion with 61% net new. How much of this pipeline was tied to agentic AI and Topaz? The second part of the question is, what's the typical time lag when it comes to converting this TCV signing to AI-led deals, the recognition of these AI deals?

Speaker #2: And then of course, I'll work with Dash very closely on the transition as well.

Speaker #1: Thanks, Rohit. The next question is from Polemy Chatterjee from Financial Express.

Speaker #4: Good evening. Just a couple of questions. I mean, you mentioned just now that the new kinds of AI deals are also a mix of like the more traditional ones and pure play AI.

Rishi Basu: Thanks, Rohit. The next question is from Poulomi Chatterjee from The Financial Express.

Poulomi Chatterjee: Good evening. Just a couple of questions. You mentioned just now that the new kinds of AI deals are also a mix of the more traditional ones than pure-play AI. How do you see the margins of these, the new buckets of AI deals essentially evolving? Also, I'm curious, Infosys had offerings for small language models, specialized models in banking and IT ops, I think. Do you see how is demand for these models, and has there been an uptick, especially since enterprises are moving more towards a more mixed model kind of?

Speaker #3: So what has happened today with clients' discussions is almost every discussion has some element of AI and of Topaz Fabric, because Topaz Fabric is like a foundational thing. Many clients come, use it here, experiment with it, and are using it.

Salil Parekh: What has happened today with clients' discussions is almost every discussion has some element of AI and of Topaz Fabric, because Topaz Fabric is like a foundational thing. Many clients come use it here, experiment with it and are using it. We use Topaz across all of the work we are doing. It's not like the total TCV is for AI, but without that we are not able to participate because that's integral to the work that we're doing. The conversion is the same in the sense of when the deals are signed, typically, depending on the type of deals. If there are deals where have some level of transfer consolidation that ramp up pretty quickly. If there are some deals which have a transformation and that activity starts and then the deals happen.

Speaker #4: How do you see the margins of these the new buckets of AI deals essentially evolving? And also I'm curious, like I mean, Infosys had offerings for small language models.

Speaker #4: Specialized models in banking and IT ops, I think. Like do you see how is demand for these models and has there been an uptick especially since you know enterprises are moving more towards a more mixed model kind of?

Speaker #3: And we use Topaz across all of the work we are doing. So it's not like the total TCV is for AI but it is without that you are not able we are not able to participate because that's integral to the work that we're doing.

Speaker #2: No, absolutely. I think that's exactly what we are seeing for the small language model for the banking is getting good traction. It's based also on a physical product set.

Speaker #3: The conversion is the same in the sense of when the deals are signed, typically depending on the type of deals. If there are deals where we have some level of transfer, consolidation, that ramp up pretty quickly.

Speaker #2: So a lot of the clients there it's an easy way to leverage a small language model in the parameter set is smaller the cost of running it is smaller the token usage is more efficient and so on.

Salil Parekh: No, absolutely. I think that's exactly what we are seeing for the small language model for the banking is getting good traction. It's based also on a Finacle product set. A lot of the clients there, it's an easy way to leverage a small language model in. The parameter set is smaller. The cost of running it is smaller. The token usage is more efficient and so on. The same for the IT ops. That's all part of that scaling. On the AI deals itself, we don't comment separately on the margin in terms of the quantitative value, but we are quite comfortable with the margin we are seeing, yes.

Speaker #3: If there are some deals which have a transformation in that activity starts and then the deal driver. So it's not like one thing for all the deals.

Speaker #2: The same for the IT ops. That's all part of that scaling. On the AI deals itself, we don't comment separately on the margin. In terms of the quantitative value, but we are quite comfortable with the margin we are seeing.

Speaker #3: But it's a similar thing to what we have seen over the past several quarters. It's not like suddenly the TCV has come in and the ramp-up hasn't happened for a long period, and so on.

Speaker #6: Also, on the transition, of course, is this transition all about strategic continuity? How should investors kind of read into it? What do you want to see?

Rishi Basu: On the transition, of course, does this transition all about strategic continuity? How should investors read into it? What do you want to see?

Speaker #1: Thank you. The next question is from Jas Bardia from Mint.

Speaker #4: Good evening. So in response to a previous question, on the mandate for the new CEO designate, you said there were some things that you would fine-tune.

Speaker #3: So they you know we have well-defined AI strategy today. We've looked at like the hexagon with the six areas of the addressable market. We are seeing good growth the 8 percent of our revenue the double digit quarter on quarter growth.

Salil Parekh: There, we have a well-defined AI strategy today. We've looked at the Hexagon with the six areas of the addressable market. We are seeing good growth of the 8% of our revenue, the double-digit quarter-on-quarter growth. That's the strategy we will continue with as we go through into the next phase. Of course, I'll work with Dash very closely on the transition as well.

Rishi Basu: Thank you. The next question is from Jaspreet Bindra from Mint.

Speaker #4: Could you just shed some more light on what these things would be? Second, amid all this talk of rising data center demand and slowdown in mainframe modernization, are you seeing clients spend more on memory chips, GPU, and if yes, are you seeing that lead to some sort of a slowdown in the traditional infra management work?

Jaspreet Bindra: Good evening. In response to a previous question on the mandate for the new CEO designate, you said there were some things that you would fine-tune. Could you just shed some more light on what these things would be? Second, amid all this talk of rising data center demand and slowdown in mainframe modernization, are you seeing clients spend more on memory chips, GPU? If yes, are you seeing that lead to some sort of a slowdown in the traditional infra management work? If I may squeeze a third question in. When it comes to deals and the demand environment, are you seeing AI make the market a little more competitive between the mid caps and the large caps, such as yourselves?

Speaker #3: So that's the strategy we will continue with as we go through into the next phase. And then, of course, I'll work with Dash very closely on the transition as well.

Speaker #4: If I may squeeze a third question in, when it comes to deals, and you know the demand environment, are you seeing AI kind of make the market a little more competitive between the midcaps and the large caps such as yourself?

Speaker #1: Thanks, Rohit. The next question is from Polemy Chatterjee from Financial Express.

Rishi Basu: Thanks, Rohit. The next question is from Poulomi Chatterjee from "Financial Express.

Speaker #5: Good evening. Just a couple of questions. I mean, you mentioned just now that the new kinds of AI deals are also a mix of the more traditional ones and pure-play AI.

Poulomi Chatterjee: Good evening. Just a couple of questions. You mentioned just now that the new kinds of AI deals are also a mix of the more traditional ones than pure play AI. How do you see the margins of these, the new buckets of AI deals essentially evolving? I'm curious, Infosys had offerings for small language models, specialized models in banking and IT ops, I think. Do you see how is demand for these models, and has there been an uptick, especially since enterprises are moving more towards a more mixed model?

Speaker #2: So on the first one, let me say this I think AI strategy is well-defined we are focused on the six areas. And that will continue.

Salil Parekh: Let me say this. I think our AI strategy is well-defined. We are focused on the six areas, and that will continue. We see good traction in that. We see good growth in that. It's now becoming a large part of our revenue with 8%. That will continue, and that is the driving part of it. The approach that we will take is always look at what's going on in the environment. We see, for example, today, there's a tremendous attention to token cost. There's a tremendous attention to ensuring there's a sovereignty of data within a client environment. The overall strategy remains the same. Those sorts of things, we will evolve as we go along.

Speaker #5: How do you see the margins of these the new buckets of AI deals essentially evolving and also I'm curious like I mean Infosys had offerings for small language models specialized models in banking and IT ops I think like do you see how is demand for these models and has there been an uptake especially since you know enterprises are moving more towards a more mixed model kind of.

Speaker #2: We see good traction in that. We see good growth in that. It's now becoming a large part of our revenue with 8%. And so that will continue.

Speaker #2: And that is the driving part of it. The approach that we will take is always look at what's going on in the environment. We see, for example, today there's a tremendous attention to token cost.

Salil Parekh: No, absolutely. I think that's exactly what we are seeing for the small language model for the banking is getting good traction. It's based also on our Finacle product set. A lot of the clients there, it's an easy way to leverage a small language model in. The parameter set is smaller, the cost of running it is smaller, the token usage is more efficient and so on. The same for the IT ops. That's all part of that scaling. On the AI deals itself, we don't comment separately on the margin, in terms of the quantitative value, but we are quite comfortable with the margin we are seeing.

Speaker #3: No, absolutely. I think that's exactly what we are seeing for the small language model for banking—it is getting good traction. It's also based on a physical product set, so for a lot of the clients there, it's an easy way to leverage a small language model. The parameter set is smaller, the cost of running it is smaller, the token usage is more efficient, and so on.

Speaker #2: There's a tremendous attention to ensuring there's a sovereignty of data within a client environment. But the overall strategy remains the same. Those sorts of things we will evolve as we go along.

Speaker #2: On the related to the infra environment, the costs, as you mentioned, of memory chips and so on, I think in general these are all areas, whether it's infra or other areas where there's always a need for efficiency.

Speaker #3: The same for the IT ops. That's all part of that scaling on the AI deals itself we don't comment separately on the margin in terms of the the quantitative value but we we are we are quite comfortable with the margin we are seeing.

Salil Parekh: Related to the infra environment, the costs, as you mentioned, of memory chips and so on, I think in general, these are all areas, whether it's infra or other areas, where there's always a need for efficiency. That is the overarching theme that we see, whether there's productivity improvements. A lot of our large deals look at cost and so on, and that's primarily the environment that we are in. Having said that, we are still seeing tremendous growth that I shared earlier in AI, which is absolutely new things that we are driving toward.

Speaker #2: And that is the overarching theme that we see whether there's productivity improvements a lot of our large deals look at cost and so on.

Speaker #1: Thank you. The next question is from Jas Bardia from Mint.

Rishi Basu: Thank you. The next question is from Jas Pardiya from "Mint.

Speaker #6: Good evening. So, in response to a previous question on the mandate for the new CEO-designate, you said there were some things that you would fine-tune. Could you just shed some more light on what these things would be? Second, amid all this talk of rising data center demand and, you know, slowdown in mainframe modernization, are you seeing clients spend more on memory chips and GPUs, and if yes, are you seeing that lead to some sort of a slowdown in the traditional infra management work? If I may squeeze a third question in, when it comes to deals and the demand environment, are you seeing AI kind of make the market a little more competitive between the mid-caps and the large caps such as yourself?

Jas Pardiya: Good evening. In response to a previous question, on the mandate for the new CEO designate, you said there were some things that you would fine-tune. Could you just shed some more light on what these things would be? Second, amid all this talk of rising data center demand and slowdown in mainframe modernization, are you seeing clients spend more on memory chips, GPU? If yes, are you seeing that lead to some sort of a slowdown in the traditional infra management work? If I may squeeze a third question in. When it comes to deals and the demand environment, are you seeing AI make the market a little more competitive between the midcaps and the large caps such as yourself?

Speaker #2: And that's primarily the environment that we are in. Having said that, we are still seeing tremendous growth that I shared earlier in AI. Which is absolutely new things that we are driving toward.

Speaker #3: There's a question on deals and demand environment.

Speaker #2: I mean, we see a few companies where we compete given our client base. And those are the ones that we look at are sort of essential differentiator on AI that I shared earlier, but also on the quality of delivery and the depth of delivery.

Jaspreet Bindra: There was a question on deals and demand environment.

Rishi Basu: There was a question on deals and demand environment.

Rishi Basu: Competitors. Between the mid caps.

Jaspreet Bindra: Competitors. Between the mid caps.

Salil Parekh: We see a few companies where we compete given our client base. Those are the ones that we look at. Our sort of essential differentiator on AI that I shared earlier, but also on the quality of delivery and the depth of delivery, is massive, and it's, at least in my view, very difficult for too many of any company to really match up with that.

Speaker #3: So on the first one let me say this I think AI strategy is well-defined we are focused on the six areas and that will continue we see good traction in that we see good growth in that it's now becoming a large part of our revenue with eight eight percent and so that will continue in that is the the driving part of it the the approach that we will take is always look at what's going on in the environment we see for example today there's a tremendous attention to token cost there's a tremendous attention to ensuring there's a sovereignty of data within a client environment but the overall strategy remains the same those sorts of things we will evolve as we go along.

Salil Parekh: On the first one, let me say this. I think our AI strategy is well defined. We are focused on the six areas, that will continue. We see good traction in that. We see good growth in that. It's now becoming a large part of our revenue with 8%. That will continue, and that is the driving part of it. The approach that we will take is always look at what's going on in the environment. We see, for example, today, there's a tremendous attention to token cost. There's a tremendous attention to ensuring there's a sovereignty of data within a client environment. The overall strategy remains the same. Those sorts of things we will evolve as we go along. Related to the infra environment, the costs, as you mentioned, of memory chips and so on.

Speaker #2: Is massive and it's at least in my view very difficult for sort of too many of any company to really match up with that.

Speaker #1: Thank you, Jas. The next question is from Rukmini Rao from Fortune India.

Speaker #4: Thanks, Rashid. Sunil, given that if you're looking at Microsoft, which recently launched their Frontier company and then Anthropic looking at old with big tech getting into AI services space, are they going to be competitors where probably you and your peers may at some day become just vendors giving in your engineers who given that partnership that you have with many of them where you're training lakhs of people on these models, right?

Rishi Basu: Thank you, Jayesh. The next question is from Rukmini Rao from Fortune India.

Rishi Basu: Thank you, Jas. The next question is from Rukmini Rao from Fortune India.

Rukmini Rao: Thanks, Rishi. Salil, given that if you're looking at Microsoft, which recently launched their Frontier company and then Anthropic, looking at Ode, with big tech getting into AI services space, are they going to be competitors where probably you and your peers may someday become just vendors giving in your engineers who, given that partnership that you have with many of them, where you're training lakhs of people on these models, right? Will Indian IT companies end up becoming subcontractors at the end of the day if these guys get into the game? Two, if that happens, will that rob you from, say, the bigger opportunities that all of you have been talking about in the AI space, the massive opportunity that all of you think it's going to be.

Speaker #4: I mean, will ID companies end up Indian IT companies end up becoming subcontractors at the end of the day if these guys get into the game?

Speaker #4: Two, is that going to if that happens, will that rob you from say the bigger opportunities that all of you have been talking about in the AI space that you know the massive opportunity that all of you think is going to be, but if the big boys get into this entire services space?

Speaker #3: On the related to the infra environment, the costs, as you mentioned, of memory chips and so on—I think in general these are all areas, whether it's infra or other areas, where there's always a need for efficiency. That is the overarching theme that we see, whether it's productivity improvements, a lot of our large deals look at cost and so on, and that's primarily the environment that we are in.

Salil Parekh: I think in general, these are all areas, whether it's infra or other areas, where there's always a need for efficiency. That is the overarching theme that we see, whether there's productivity improvements. A lot of our large deals look at cost and so on, and that's primarily the environment that we are in. Having said that, we are still seeing tremendous growth that I shared earlier in AI, which is absolutely new things that we are driving toward.

Speaker #4: Is the future opportunity that you're talking about getting squeezed? And second one, in conjuncture with all the problems with in terms of the cybersecurity part of these LLM models, right?

Rukmini Rao: If the big boys get into this entire services space, is the future opportunity that you're talking about getting squeezed? Second one, in conjunction with all the problems in terms of the cybersecurity part of these LLM models, right? When large corporations are looking at their own agentic environment, given your conversations with clients, are large companies okay to be under the umbrella of just one ecosystem? Let's say just a cloud enterprise kind of adoption, which we saw. What happened with SaaS, given the problems that is with these LLMs, will there ever be an entire, let's say Copilot environment in which any enterprise would be okay to work or just an OpenAI sort of environment given the cybersecurity problems that are cropping up at very nascent stage of the adoption? Thank you.

Speaker #4: When large corporations are looking at their own agentic environment, are given your conversations with clients, are large companies okay to have be under the umbrella of just one ecosystem, let's say just a cloud enterprise kind of adoption, which we saw I mean, what happened with SaaS, given the problems that is with these LLMs, will they ever be like an entire let's say a copilot environment in which any enterprise would be okay to work or just an open AI sort of environment?

Speaker #3: Having said that, we are still seeing tremendous growth that I shared earlier in AI, which is absolutely new things that we are driving toward.

Rishi Basu: There's a question on deals and demand environment.

Speaker #1: There's a question on deals and the demand environment.

Speaker #3: I mean we we see a few few companies where we compete you know given our client base and those are the ones that we look at are sort of essential differentiator on AI that I shared earlier but also on the quality of delivery and the depth of delivery is massive and it's at least in my view very difficult for for sort of too many of any company to really match up with that.

Salil Parekh: We see a few companies where we compete given our client base, and those are the ones that we look at. Our sort of essential differentiator on AI that I shared earlier, but also on the quality of delivery and the depth of delivery, is massive, and it's, at least in my view, very difficult for too many of any company to really match up with that.

Speaker #4: Given the cybersecurity problems that are cropping up, at very nascent stage of adoption. Thank you.

Speaker #2: So first, on the first one, I think if there are companies that want to enter the services space so that AI can be made to work, it is actually a huge positive for Infosys.

Salil Parekh: On the first one, I think if there are companies that want to enter the services space so that AI can be made to work, it is actually a huge positive for Infosys. That means that what we do will continue to be done, because that's what we do every day. Our job is to make AI work as services for clients. It now so happens that we have over 300,000 people doing that. We work with some 1,800 clients. The scale, the context that we have with our clients is completely different. To me, it's a huge positive. Of course, we are happy to work with other companies, partner with them. That goes on in many different ways across time.

Speaker #1: Thank you, Jess. The next question is from Rukmini Rao from Fortune India.

Rishi Basu: Thank you, Jeff. The next question is from Rukmini Rao from Fortune India.

Speaker #2: Because that means that what we do will continue to be done. Because that's what we do every day. Our job is to make AI work as services for clients.

Speaker #5: Thanks Rashid. Saril given that if you're looking at Microsoft which recently launched their frontier company and then Anthropic looking at old you know with big tech getting into AI services space are they going to be competitors where probably you and your peers may at some day become just vendors you know giving in your engineers who given that partnership that you have with many of them where you're training lakhs of people on these models right is I mean will will ID companies end up Indian IT companies end up becoming subcontractors at the end of the day if these guys get into the game to is that going to if if that happens will that rob you from say the bigger opportunities that all of you have been talking about in in the AI space that you know the massive opportunity that all of you think is going to be but if the big boys get into this entire services space is the future opportunity that you're talking about getting squeezed and second one in conjuncture with you know all the problems with in terms of the cyber security part of these LLM models right when when when large corporations are looking at their own agentic environment are are given your your conversations with clients are large companies okay to have be under the umbrella of just one ecosystem let's say just a cloud enterprise kind of adoption which we saw I mean what happened with SaaS given the problems that is with these LLMs will they will they ever be like an entire let's say a co-pilot environment in which any enterprise would be okay to work or just a open AI sort of environment given you know the cyber security problems that are cropping up at very nascent stage of the adoption thank you.

Rukmini Rao: Thanks, Rishi. Salil, given that if you're looking at Microsoft, which recently launched their Frontier company, and then Anthropic, with big tech getting into AI services space, are they going to be competitors where probably you and your peers may someday become just vendors giving in your engineers who, given that partnership that you have with many of them, where you're training lakhs of people on these models, right? Will Indian IT companies end up becoming subcontractors at the end of the day if these guys get into the game?

Speaker #2: It now so happens that we have over 300,000 people doing that. We work with some 1,800 clients. So the scale, the context that we have with our clients is completely different.

Speaker #2: So to me, it's a huge positive. Of course, we have happy to work with other companies, partner with them. That goes on in many different ways across time.

Speaker #2: But the first big thing for me is at least if someone new is entering services means there's a very good future for services that they can see and therefore we can see.

Rukmini Rao: Two, if that happens, will that rob you from, say, the bigger opportunities that all of you have been talking about in the AI space that the massive opportunity that all of you think is going to be, but if the big boys get into this entire services space, is the future opportunity that you're talking about getting squeezed? Second one, in conjunction with all the problems in terms of the cybersecurity part of these LLM models, right? When large corporations are looking at their own agentic environment, given your conversations with clients, are large companies okay to be under the umbrella of just one ecosystem, let's say just a cloud enterprise kind of adoption, which we saw.

Speaker #2: On the cyber, I think absolutely not just cyber, actually the data part also. So many large companies and clients want to be mindful of how they look at what is happening with their own data or even beyond that, what is the essence of the company?

Salil Parekh: The first big thing for me is at least if someone new is entering services, means there's a very good future for services that they can see and therefore we can see. On the cyber, I think absolutely, not just cyber, actually the data part also. Many large companies and clients want to be mindful of how they look at what is happening with their own data or even beyond that, what is the essence of the company, how they're making sure it just doesn't go outside and they lose some of their competitive differentiation. One of the things we've done in Topaz Fabric is enable the large company client to keep that within themselves. It's not even with us in that sense on Topaz Fabric. It's not with the foundation model company. That allows them to keep what is essential for them with themselves.

Speaker #2: How they making sure it just doesn't go outside and they lose some of the competitive differentiation. So one of the things we've done in Fabric, Topaz Fabric is enable the large company client to keep that within themselves.

Speaker #2: It's not even with us in that sense on Topaz Fabric is not with the model the foundation model company. So that allows them to keep what is essential for them with themselves.

Rukmini Rao: What happened with SaaS, given the problems that is with these LLMs, will there ever be an entire, let's say, Copilot environment in which any enterprise would be okay to work or just an OpenAI sort of environment, given the cybersecurity problems that are cropping up at very nascent stage of the adoption? Thank you.

Speaker #2: And that to me is a huge differentiator for us. And I think may become even more and more important as time goes on.

Speaker #4: Sunil, just to sort of clarify, when you say great opportunity, is it like again, the whole subcontracting, vendor kind of opportunity that you're talking about, or virgin probably big contracts that are Microsoft would end up winning if they are an AI services company?

Salil Parekh: That to me is a huge differentiator for us, and I think may become even more and more important as time goes on.

Speaker #3: So first, on the first one, I think if there are companies that want to enter the services space so that AI can be made to work, it is actually a huge positive for Infosys.

Salil Parekh: On the first one, I think if there are companies that want to enter the services space so that AI can be made to work, it is actually a huge positive for Infosys because that means that what we do will continue to be done because that's what we do every day. Our job is to make AI work as services for clients. It now so happens that we have over 300,000 people doing that. We work with some 1,800 clients. The scale, the context that we have with our clients is completely different. To me, it's a huge positive. Of course, we are happy to work with other companies, partner with them. That goes on in many different ways across time.

Rukmini Rao: Salil, just to sort of clarify, when you say great opportunity, is it again, the whole subcontracting vendor kind of opportunity that you're talking about? Virgin, probably big contracts that a Microsoft would end up winning if they are a AI services company, and you end up getting a chunk of it, and everybody else goes about the same way now. Vendor consolidation deal coming in about 5 years later. Is that what you say when you're saying that you're optimistic about the opportunity?

Speaker #4: And you end up getting like a chunk of it and everybody else goes about the same way now. And then vendor consolidation, deal coming in about five years later.

Speaker #4: Is that what you say when you're saying that you're optimistic about the opportunity?

Speaker #3: Because that means that what we do will continue to be done. Because that's what we do every day. Our job is to make AI work as services for clients.

Speaker #2: No, no. I'm more looking at it like if someone with a few hundred people or a few thousand people can get excited about services, we with 300,000 people would be very excited about services.

Speaker #3: It now so happens that we have over 300,000 people doing that. We work with some 1,800 clients, so the scale and the context that we have with our clients is completely different.

Salil Parekh: No, I'm more looking at it like if someone with a few hundred people or a few thousand people can get excited about services, we with 300,000 people will be very excited about services.

Speaker #2: bid for at a scale that they can do if they have companies. So my sense is like where we have understanding of our client and the context of that client, I think we are extremely well positioned in those places.

Speaker #3: So to me, it's a huge positive. Of course, we are happy to work with other companies and partner with them; that goes on in many different ways across time. But the first big thing for me is at least if someone new is entering services, it means there's a very good future for services that they can see and therefore we can see.

Rukmini Rao: people where supposedly what a Microsoft would be bidding for, you will also be able to bid for at a scale that they can do because they have companies.

Salil Parekh: The first big thing for me is at least if someone new is entering services means there's a very good future for services that they can see and therefore we can see it. On the cyber, I think absolutely. Not just cyber, actually, the data part also. Many large companies and clients want to be mindful of how they look at what is happening with their own data or even beyond that, what is the essence of the company, how they're making sure it just doesn't go outside and they lose some of the competitive differentiation. One of the things we've done in Topaz Fabric is enable the large company client to keep that within themselves. It's not even with us in that sense on Topaz Fabric. It's not with the foundation model company. That allows them to keep what is essential for them with themselves.

Salil Parekh: My sense is like where we have a understanding of a client and the context of that client, I think we are extremely well-positioned in those places. I would say better than maybe anyone else.

Speaker #2: I would say better than maybe anyone else.

Speaker #1: Thank you. Thank you. With that, we come to the end of this press conference. We thank our friends from media. Thank you, Sunil, and thank you, Jayesh.

Speaker #3: On the cyber, I think absolutely—not just cyber, actually, the data part also. So many large companies and clients want to be mindful of how they look at what is happening with their own data, or even beyond that, what is the essence of the company, you know, how they're making sure it just doesn't go outside and they lose some of the competitive differentiation.

Speaker #1: Before we conclude, please note that the archive webcast of this press conference will be available on the Infosys website and on our YouTube channel later today.

Rishi Basu: Thank you. With that, we come to the end of this press conference. We thank our friends from media. Thank you, Salil, and thank you, Jayesh. Before we conclude, please note that the archive webcast of this press conference will be available on the Infosys website and on our YouTube channel later today. Thank you, and please join us for Hi Tea Outside.

Speaker #3: So one of the things we've done in Fabric—Topaz Fabric—is enable the large company client to keep that within themselves; it's not even with us, in that sense. Topaz Fabric is not with the model, the foundation model company, so that allows them to keep what is essential for them with themselves, and that, to me, is a huge differentiator for us, and I think may become even more and more important as time goes on.

Salil Parekh: That to me, is a huge differentiator for us and I think may become even more and more important as time goes on.

Rukmini Rao: Salil, just to sort of clarify, when you say great opportunity, is it again, the whole subcontracting vendor kind of opportunity that you're talking about? Or virgin, probably big contracts that a Microsoft would end up winning if they are a AI services company, and you end up getting a chunk of it and everybody else goes about the same way now. Then vendor consolidation deal coming in about 5 years later. Is that what you say when you're saying that you're optimistic about the opportunity?

Speaker #5: Salil, just to sort of, you know, clarify—when you say "great opportunity," is it, like, again the whole subcontracting vendor kind of opportunity that you're talking about? Or, you know, virgin probably big contracts that a Microsoft would end up winning if they are an AI services company, and you end up getting, like, a chunk of it and everybody else goes about it the same way now, you know? And then, you know, vendor consolidation deal coming in about five years later—is that what you mean when you're saying you're optimistic about the opportunity?

Speaker #3: No, no, I'm more looking at it like, if someone with a few hundred people or a few thousand people can get excited about services, we with 300,000 people will be very excited about services. We'll also be able to bid for them at a scale that they can do. My sense is that where we have an understanding of our client and the context of that client, I think we are extremely well positioned in those places, I would say better than maybe anyone else.

Salil Parekh: No, I'm more looking at it like if someone with a few hundred people or a few thousand people can get excited about services. We with 300,000 people will be very excited about services. My sense is where we have understanding of a client and the context of that client, I think we are extremely well-positioned in those places. I would say better than maybe anyone else.

Speaker #1: Thank you. Thank you. With that, we come to the end of this press conference. We thank our friends from the media. Thank you, Salil, and thank you, Jayesh.

Speaker #1: Before we conclude, please note that the archived webcast of this press conference will be available on the Infosys website and on our YouTube channel later today.

Q1 2027 Infosys Ltd Earnings Call - Press Conference

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