Infosys Q1 Results: Attrition rate improves to 13%; headcount slips sequentially

Infosys, the country's second-largest IT services company, on Thursday announced its financial performance for the quarter ended June (Q1 FY27), along with updates on its employee attrition, total headcount and workforce additions during the period.

The company's voluntary attrition rate declined to 13% on a trailing 12-month (LTM) basis in Q1 FY27, compared with 14.4% in the corresponding quarter last year, indicating an improvement in employee retention.

However, on a sequential basis, attrition inched up from 12.6% reported in the March 2026 quarter.

The Bengaluru-based IT major had a total workforce of 328,062 employees as of June 30, 2026, compared with 328,594 employees at the end of March 2026, reflecting a net reduction of 532 employees during the quarter.

On a year-on-year (YoY) basis, the company added 4,274 employees, up from 323,788 in June 2025.

Domestic-grown IT majors are cutting costs and reducing graduate hiring as demand for legacy IT projects continues to weaken, with clients increasingly shifting their focus toward artificial intelligence (AI).

At the same time, Indian IT companies are seeking to capture a larger share of AI-related spending while leveraging the technology to improve their own operational efficiency.

Jayesh Sanghrajka, CFO, said, "We are accelerating investments in AI, talent, and platforms to drive future growth and remain committed to improving productivity, expanding operating leverage and maintaining the financial flexibility needed to capitalize on emerging opportunities while delivering sustainable shareholder value”

The rapid advances in AI tools launched by OpenAI and Anthropic PBC are posing a major challenge to the Indian software industry.

Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.

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