Infosys declares 80% bonus payout for employees after strong Q1FY26 results

The Bengaluru-headquartered company said payout percentages have been linked to performance ratings across levels. The payouts apply to employees in Band 6 and below, covering junior to mid-level staff who receive quarterly bonuses. The bonus percentage will differ based on individual ratings, and individual performance bonus letters will be uploaded to employees’ e-dockets.

For PL4 employees, bonuses range between 80% and 89%, while PL5 employees are set to receive between 78% and 87%. PL6 staff will receive payouts in the 75-85% range, depending on performance. At the PL4 level, employees rated “Outstanding” will receive 89% of their eligible bonus, while those marked “Needs Attention” will get 80%. At PL6, top performers will get 85%, and the lowest band is set at 75%.

The development comes shortly after Tata Consultancy Services, India’s largest IT services firm, announced a wage hike for its employees starting September 1. This followed a Moneycontrol report that the company plans to lay off 12,000 employees in the current financial year.

Shares of Infosys settled to close 3.83% higher at ₹1,495.10 apiece on the NSE.

Infosys reported a consolidated net profit of ₹6,921 crore for the first quarter of current financial year (Q1 FY26), marking a year-on-year (YoY) increase of 9% from ₹6,368 crore logged in the same period last year. On a sequential basis, Infosys' net profit declined 1.59% from ₹7,033 crore.

The Bengaluru-based company has raised its revenue growth guidance for the current financial year to 1%-3% from the earlier guidance of 0%-3% and maintained its operating margin guidance of 20%-22%. The company's revenue in the April-June period rose 7.5% YoY to ₹42,279 crore from ₹39,315 crore seen in the year-ago period. Its revenue in constant currency (CC) terms came in at $4,941 million in Q1, up 3.8% annually and 2.6% sequentially.

Infosys EBIT rose 6.2% annually to ₹8,803 crore as against ₹8,288 crore.

In the first quarter of the current fiscal, Infosys earned 27.9% revenue from the financial services vertical, manufacturing contributed 16.1%, the energy, utilities, resources, and services segment added 13.6%, retail added 13.4% and communication contributed 12% to the revenue mix.

As far as geographies are concerned, Infosys earned 56.5% revenue from North America, 31.5% from Europe, 9.1% from the rest of the world, and 2.9% from the Indian market.