Infosys will begin rolling out salary hikes from October, with senior employees receiving their revisions in January, as the company sticks to its plan of hiring 20,000 fresh graduates this financial year despite a marginal sequential decline in headcount.
Speaking during the company's post-Q1 earnings press conference, CEO Salil Parekh said the salary revision would be implemented in phases. The announcement comes alongside Infosys' first-quarter earnings, leadership succession plans and an update on its workforce strategy.
Salary revisions to be rolled out in phases
Parekh said the salary increase would be staggered across multiple tranches.
"Most employees will get hikes in October and senior employees will get in January," he said.
The phased approach comes as the Bengaluru-headquartered IT services company navigates an uncertain demand environment while continuing to invest in talent and artificial intelligence capabilities.
Campus hiring remains unchanged
Despite ongoing productivity improvements, Infosys has retained its annual campus hiring target.
The company recruited more than 4,000 college graduates during the June quarter and plans to onboard 20,000 freshers during FY27, similar to the previous financial year.
"This year we have a plan to recruit 20,000 college graduates. We have 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...," Parekh said.
The hiring plan suggests the company continues to prioritise early-career talent while balancing productivity gains from technology adoption.
Workforce contracts slightly during the quarter
Infosys ended the June quarter with a total workforce of 3,28,062 employees, down from 3,28,594 at the end of March, resulting in a sequential decline of 532 employees.
However, on a year-on-year basis, the company expanded its workforce by 4,274 employees, compared with 3,23,788 employees in the corresponding quarter last year.
Other workforce metrics for the quarter include:
- Total headcount: 3,28,062
- Sequential change: Down by 532 employees
- Year-on-year addition: 4,274 employees
- Fresh graduates hired in Q1 FY27: More than 4,000
- FY27 campus hiring target: 20,000 graduates
- Last 12-month attrition: 13%, up from 12.6% in the previous quarter
Among its peers, Tata Consultancy Services (TCS) added about 9,200 employees sequentially during the quarter, taking its workforce to 5,93,798. HCLTech reported a sequential decline of 3,292 employees, while Wipro added 888 employees quarter-on-quarter.
Leadership transition announced
Infosys also announced a planned leadership transition.
The company's board appointed Ashiss Kumar Dash as CEO-designate. Dash, who currently leads the energy vertical and has spent more than three decades with Infosys, will assume the role on April 1, 2027, after Salil Parekh completes his second term in March 2027.
The appointment marks the end of Parekh's nine-year tenure as Chief Executive Officer.
Revenue grows as outlook remains measured
For the June quarter, Infosys reported:
- Consolidated net profit: ₹7,769 crore, up 12.2% year-on-year
- Revenue: ₹48,211 crore, up 14% year-on-year
- Large deal bookings: $3.6 billion, compared with $3.2 billion in the previous quarter
- AI services contribution: 8.2% of revenue, up from 5.5% in the December quarter
The company also narrowed the upper end of its full-year revenue growth guidance to 1.5% to 3%, citing continued macroeconomic uncertainty and cautious client spending.
With salary hikes scheduled to begin in October, campus hiring continuing at scale and a leadership transition already mapped out, Infosys is balancing employee investments with operational efficiency as it navigates an evolving technology and demand landscape.