Infy vs Bajajfinsv Q1 FY26

IN

Infy

Q1 FY26 · Diversified

Infosys delivered a strong Q1 FY26 with constant currency revenue growth of 3.8% YoY and 2.6% QoQ, driven by broad-based growth across industries and geographies. Large deal TCV was robust at $3.8 billion with 55% net new, including a mega deal with a global bank. Operating margin came in at 20.8%, down 30bps YoY due to compensation hikes and sales investments, partly offset by Project Maximus benefits. Management revised FY26 revenue guidance to 1%-3% CC (from 0%-3%), citing persistent macro uncertainty and no improvement in client discretionary spending. AI adoption is accelerating, with 300 agents built and strong pipeline in enterprise AI. Key risk: delayed decision-making and tariff uncertainty could further pressure H2 growth.

Guidance read

FY26 revenue growth guidance revised to 1%-3% CC: Revised from 0%-3% to 1%-3% in constant currency, reflecting strong Q1 but persistent macro uncertainty. Operating margin guidance maintained at 20%-22%: Margin guidance unchanged; aspiration to improve margin YoY despite headwinds from compensation and deal ramp-ups. FY26 free cash flow expected above 100% of net profit: Continued strong cash generation; 5th consecutive quarter of FCF >100% of net profit.

Risk read

Key risks include Macro uncertainty and tariff impact — Persistent tariff and geopolitical uncertainty are delaying client discretionary spending and elongating decision cycles.; H2 seasonality and demand weakness — Management expects H1 to be stronger than H2 due to normal seasonality, implying potential growth deceleration.; AI-driven productivity may cap pricing — Productivity gains from AI are shared with clients, potentially limiting margin expansion and revenue per employee.; Vendor consolidation may intensify competition — As clients consolidate vendors, competition with larger peers could pressure margins and win rates..

Promise ledger

Of 1 tracked promise, management 0 met, 0 close, 1 missed.

Bajaj Finserv reported a strong Q1 FY26 with consolidated PAT up 30% YoY to INR 2,789 crore, driven by robust performance across insurance and lending subsidiaries. Bajaj Allianz Life saw VNB growth of 39% and margin expansion of 420bps to 11.1%, reflecting successful execution of BALIC 2.0 strategy. Bajaj Allianz General maintained a combined ratio of 103.6% (102.5% ex-one-by-N impact) with core business growing 15% ex-crop and government health. Bajaj Finance added 4.69 million new customers and expects to disburse over 50 million loans in FY26. Bajaj Housing Finance grew AUM 24% YoY. The Allianz exit process is progressing with regulatory approvals received. Key risks include elevated competition in general insurance and potential slowdown in group protection due to MFI sector headwinds.

Guidance read

BFL expects to disburse over 50 million new loans in FY26: Bajaj Finance guided for over 50 million new loan disbursements in full-year FY26, up from 13.49 million in Q1. BFL expects to add 14-16 million new customers in FY26: Bajaj Finance expects to add 14-16 million new customers in FY26, with 4.69 million added in Q1. BALIC expects H2 growth to be 'significantly comfortable': Management indicated that H2 growth will be significantly comfortable due to favorable base effects and strategy execution. BAGIC aims to maintain combined ratio close to 100%: Management reiterated its endeavor to keep combined ratio close to 100%, despite current elevated levels.

Risk read

Key risks include Intense competition in general insurance — Competition remains high across motor, health, and crop segments, potentially pressuring pricing and combined ratios.; Group protection degrowth due to MFI slowdown — BALIC's group protection business declined 7% YoY, largely due to slowdown in MFI lending, which is outside management's control.; Persistency dips in 13-month bucket — BALIC observed lower persistency in the 13-month bucket due to base effect of higher ticket size policies written in Q4 FY24.; Potential impact of tender-based crop business pricing — Management noted that crop tender pricing is below comfortable levels, which could lead to lower win rates or adverse loss ratios..

Promise ledger

Scorecard data is being built as historical quarters are processed.