Infosys hands out average bonus payout of 65% to employees, amid a decline in Q4 profit

India's second-largest IT services company, Infosys, has rolled out a bonus payout averaging 65% for Q4FY25, sources told news agency Press Trust of India (PTI).

According to a PTI source, Infosys has rolled out an average bonus payout of 65% for Q4 FY25, considering the "macroeconomic factors". The source, however, pointed out that this is an average payout and that top performers will be given a higher payout.

According to a seperate report by The Times of India, a majority of the eligible employees received 50% of their expected performance bonus, while a few reportedly got around 70%. This marks a significant drop from previous quarters and has raised concerns among employees about the company’s current reward strategy and overall performance.

The company informed employees through a brief internal message that the bonus would be paid along with the May salary. Typically, such announcements are accompanied by a standard note from management highlighting the business outlook, growth plans, and expressing appreciation for employees. However, sources noted that this usual message was missing this time.

In February, the company had issued salary revision letters, granting most employees a hike of 5–8%.

This downward trend in bonus payouts follows a pattern over recent quarters. As per The Economic Times (ET), Infosys had given an average bonus of 90% in Q2 (July–September 2024), which then fell to 80% in Q3 (October–December 2024). A person familiar with the matter told ET, “The bonus letters have gone out, and most employees have seen a dip.”

Despite the dip in incentives, Infosys has reassured employees that high performers will be rewarded in upcoming cycles.

Infosys reported a decline of 11.8% in its consolidated net profit for the March 2025 quarter at ₹7,033 crore, even as it posted its highest-ever free cash flow (FCF) for the full financial year. The company’s revenue for the quarter rose 7.9% year-on-year to ₹40,925 crore, while operating margin improved by 90 basis points YoY to 21.0%, Infosys said in a regulatory filing.

It posted revenues of ₹1,62,990 crore for FY2024-25, a growth of 6.1% over the previous year. Operating margin for the year stood at 21.1%, an expansion of 50 basis points year-on-year.

The company's board has proposed a final dividend of ₹22 per equity share, taking the total dividend for FY25 to ₹39 per share, a 13.2% increase over the previous year. The company's employee count at the end of FY25 was 323,578.

For FY26. Infosys has given a revenue growth guidance of 0-3% in constant currency terms and an operating margin guidance of 20-22%.

As of 11:17 am, Infosys shares traded 1.73% lower at ₹1,585.65, underperforming the SENSEX which was down 0.37%.