Interim report
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TO ALL STOCK EXCHANGES BSE L IMITED NATIONAL STOCK EXCHANGE OF INDIA LIMITED NEW YORK STOCK EXCHANGE Jul y 23, 2025 Dear Sir/ Madam, Sub: Outcome of the Board meeting This has reference to our letter dated June 13, 2025, regarding the captioned subject. The Board, at their meeting held on July 22-23, 2025 transacted the following items of business: Financ ial Results 1. Appr oved the audited consolidated financial results of the Company and its subsidiaries as per Indian Accounting Standards (“INDAS”) for the quarter ended June 30, 2025; 2. Appr oved the audited standalone financial results of the Company as per INDAS for the quarter ended June 30, 2025; 3. Appr oved the audited financial statements of the Company and its subsidiaries as per INDAS and International Financial Reporting Standard (“IFRS”) for the quarter ended June 30, 2025; The Board meeting was held on July 22 and 23, 2025. The Board meeting on July 23, 2025 commenced at 12.30 PM IST and concluded at 3.20 PM IST. We are hereby enclosing herewith the financial results and press release for your information and records. The same will also be made available on the Company’s website www.infosys.com. This is for your information and records. Yours Sincerely, For Infosys Limited Manikantha A.G.S. Company Secretary Membership No: A21918
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Fact Sheet Consolidated Financial Data - Second Quarter, Fiscal 2023 www.infosys.com Page 1 of 3 Fact Sheet Consolidated Financial Data - First Quarter, Fiscal 2026 2.6% QoQ 3.8% YoY CC Growth 20.8% Operating Margin 8.6% YoY EPS Increase (₹ terms) $3.8 Bn Large Deal TCV (55% Net New) $884 Mn Free Cash Flow Revenue Growth- Q1 26 Reported CC 4.5% 2.6% 4.8% 3.8%YoY growth (%) QoQ growth (%) Revenues by Business Segments (in %) Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Reported CC Financial services 27.9 28.4 27.5 6.3 5.6 Manufacturing 16.1 15.9 14.7 14.8 12.2 Energy, Utilities, Resources & Services 13.6 13.0 13.3 7.2 6.4 Retail 13.4 13.3 13.8 1.5 0.4 Communication 12.0 11.7 12.1 4.7 4.0 Hi-Tech 7.8 8.3 8.0 2.1 1.7 Life Sciences 6.5 6.8 7.3 (6.6) (7.9) Others 2.7 2.6 3.3 (14.9) (15.3) Total 100.0 100.0 100.0 4.8 3.8 Quarter ended YoY Growth Revenues by Client Geography (in %) Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Reported CC 56.5 57.1 58.9 0.5 0.4 31.5 31.2 28.4 16.2 12.3 9.1 8.8 9.6 - 0.4 2.9 2.9 3.1 (3.1) (1.0) 100.0 100.0 100.0 4.8 3.8 India Total Quarter ended YoY Growth North America Europe Rest of the world Client Data Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 1,861 1,869 1,867 93 91 87 1,011 992 987 317 309 309 85 85 84 41 39 40 13.2% 13.1% 13.5% 20.8% 20.7% 20.9% 35.2% 34.8% 34.9% 70 69 72 Top 5 clients Top 10 clients Top 25 clients Days Sales Outstanding* Number of Clients Quarter ended Active Added during the period (gross) Number of Million dollar clients* 1 Million dollar + 10 Million dollar + 50 Million dollar + 100 Million dollar + Client contribution to revenues *LTM (Last twelve months) Revenues
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Fact Sheet Consolidated Financial Data - Second Quarter, Fiscal 2023 www.infosys.com Page 2 of 3 Fact Sheet Consolidated Financial Data - First Quarter, Fiscal 2026 Effort & Utilization – Consolidated IT Services (in %) Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 23.6 23.6 23.9 76.4 76.4 76.1 82.7 81.9 83.9 85.2 84.9 85.3 Including trainees Excluding trainees Quarter ended Effort Onsite Offshore Utilization Employee Metrics (Nos.) Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 323,788 323,578 315,332 306,706 306,599 298,123 17,082 16,979 17,209 14.4% 14.1% 12.7% 39.1% 39.0% 39.2% Voluntary Attrition % (LTM - IT Services) % of Women Employees Quarter ended Total employees S/W professionals Sales & Support Cash Flow In US $ million Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 884 892 1,094 5,271 5,562 4,311 Quarter ended Free cash flow (1) Consolidated cash and investments (2) In ₹ crore Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 7,533 7,737 9,155 45,204 47,549 35,943 Free cash flow (1) Consolidated cash and investments (2) Quarter ended (1) Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under IFRS (Non-IFRS measure) (2) Consolidated cash and investments comprise of cash and cash equivalents, current and non-current investments excluding investments in equity and preference shares and others (Non-IFRS measure)
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Fact Sheet Consolidated Financial Data - Second Quarter, Fiscal 2023 www.infosys.com Page 3 of 3 Fact Sheet Consolidated Financial Data - First Quarter, Fiscal 2026 Consolidated statement of Comprehensive Income for three months ended, (Extracted from IFRS Financial Statement) In US $ million, except per equity share data Particulars Jun 30, 2025 Jun 30, 2024 Growth % YoY Mar 31, 2025 Growth % QoQ 4,941 4,714 4.8% 4,730 4.5% 3,416 3,259 4.8% 3,302 3.5% 1,525 1,455 4.8% 1,428 6.8% 258 232 11.2% 226 14.2% 239 229 4.4% 210 13.8% 497 461 7.8% 436 14.0% 1,028 994 3.4% 992 3.6% 20.8 21.1 -0.3% 21.0 -0.2% 110 88 25.0% 125 -12.0% 1,138 1,082 5.2% 1,117 1.9% 329 318 3.5% 303 8.6% 809 764 5.8% 814 -0.6% 809 763 5.9% 813 -0.6% 0.20 0.18 5.8% 0.20 -0.6% 0.19 0.18 5.8% 0.20 -0.6% - - - 0.26 - Income tax expense(2) Revenues Cost of sales Gross Profit Operating Expenses: Selling and marketing expenses Administrative expenses Total Operating Expenses Operating Profit Operating Margin % Other Income, net(1)(2) Profit before income taxes Net Profit (before non-controlling interests) Net Profit (after non-controlling interests) Basic EPS ($)(2) Diluted EPS ($)(2) Dividend Per Share ($) Consolidated statement of Comprehensive Income for three months ended, (Extracted from IFRS Financial Statement) In ₹ crore, except per equity share data Particulars Jun 30, 2025 Jun 30, 2024 Growth % YoY Mar 31, 2025 Growth % QoQ 42,279 39,315 7.5% 40,925 3.3% 29,224 27,177 7.5% 28,575 2.3% 13,055 12,138 7.6% 12,350 5.7% 2,208 1,937 14.0% 1,957 12.8% 2,044 1,913 6.8% 1,818 12.4% 4,252 3,850 10.4% 3,775 12.6% 8,803 8,288 6.2% 8,575 2.7% 20.8 21.1 -0.3% 21.0 -0.2% 937 733 27.8% 1,088 -13.9% 9,740 9,021 8.0% 9,663 0.8% 2,816 2,647 6.4% 2,625 7.3% 6,924 6,374 8.6% 7,038 -1.6% 6,921 6,368 8.7% 7,033 -1.6% 16.70 15.38 8.6% 16.98 -1.6% 16.68 15.35 8.6% 16.94 -1.6% - - - 22.00 - Cost of sales Revenues Net Profit (after non-controlling interests) Gross Profit Operating Expenses: Selling and marketing expenses Administrative expenses Total Operating Expenses Operating Profit Operating Margin % Other Income, net(1)(2) Profit before income taxes Income tax expense(2) Net Profit (before non-controlling interests) Basic EPS (₹)(2) Diluted EPS (₹)(2) Dividend Per Share (₹) (1) Other income is net of Finance Cost (2) Includes interest income (pre-tax) of $38Mn (₹327 crore) with reversal of net tax provisions amounting to $12Mn (₹101 crore) in Q4 FY’25 on account of orders received under section 250 of the Income Tax Act, 1961, from the Income Tax Authorities in India for certain assessment years. This has resulted in a positive impact on the consolidated Basic and Diluted EPS by approximately $0.01 (₹1.03) for the quarter ended March 31, 2025
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IFRS – INR Press Release Infosys Limited – Press Release Page 1 of 8 1\ Bengaluru, India – July 23, 2025: Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $4,941 million in Q1 revenues, year on year growth of 3.8% and sequential growth of 2.6% in constant currency. Operating margin was at 20.8%. Free cash flow generation was strong at $884 million, 109.3% of net profit. TCV of large deal wins was $3.8 billion, with 55% net new. ROE improved by 140 bps to 30.4%. "Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees”, said Salil Parekh, CEO and MD. “Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships”, he added. Guidance for FY26: • Revenue growth of 1%-3% in constant currency • Operating margin of 20%-22% Key highlights: “Q1 performance is a clear reflection of our unwavering focus on multiple fronts resulting in strong growth at 2.6% QoQ, resilient margins at 20.8% and EPS increase of 8.6% YoY. We continue to leverage Project Maximus to make investments in strategic priorities to drive profitable growth and enhance shareholder value”, said Jayesh Sanghrajka, CFO . “Cash flow conversion was well above 100% for the fifth consecutive quarter . The impact of currency volatility was e ffectively managed through our proactive hedging strategy”, he added. IFRS – INR Press Release e For the quarter ended June 30, 2025 • Revenues in CC terms grew by 3.8% YoY and by 2.6% QoQ • Reported revenues at ₹42,279 crores, growth of 7.5% YoY • Operating margin at 20.8%, decline of 0.3% YoY and decline of 0.2% QoQ • Basic EPS at ₹16.70, increase of 8.6% YoY • FCF at ₹7,533 crores, decline of 17.7% YoY; FCF conversion at 108.8% of net profit $3.8 Bn Large Deal TCV (55% Net New) 20.8% Operating Margin 2.6% QoQ 3.8% YoY CC Growth 8.6% YoY EPS Increase (₹ terms) $884 Mn Free Cash Flow Industry-leading Sequential Growth of 2.6% in CC, Driven by Differentiated Value Proposition in Enterprise AI Large Deal Wins at $3.8 Billion with 55% Net New; Demonstrating Deep Competitive Advantage in Consolidation Play FY26 Revenue Guidance Revised to 1%-3% and Margin Guidance Retained at 20%-22%
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IFRS – INR Press Release Infosys Limited – Press Release Page 2 of 8 Client wins & Testimonials 1. Infosys announced the extension of its strategic collaboration with Select Portfolio Servicing, Inc. (SPS) to help drive greater operational efficiency and service quality through a fully managed services offering encompassing hybrid cloud solutions, appli cation portfolio, IT operations, IaaS, SaaS, security operations and quality assurance. Murali Palanganatham, Chief Information Officer, SPS , said, "Infosys has been a key strategic partner over the last 20 years. SPS will leverage Infosys Topaz for AI ado ption across the business, technology, and enterprise functions to continuously enhance availability, scalability, performance, resiliency, security, and stability. This collaboration is critical and will help SPS enhance flexibility, efficiency, and predi ctability of our technology ecosystem.” 2. Infosys extend ed its strategic collaboration with AIB to accelerate its digital transformation initiatives. Graham Fagan, Group Chief Technology Officer, AIB , said, "This extended collaboration with Infosys aligns strongly with our vision to progressively modernise our technology and data capabilities to deliver the best outcomes for our customers and further accelerate our transformation. By combining our collective expertise and experience, we will deliver on our customer-first commitment and enhance operational efficiency and resilience. Infosys has been a trusted innovation partner, and we are excited about this next chapter in our collaboration as we work together to ensure AIB remains at the forefront of digital transformation in the Irish banking industry." 3. Infosys announced a strategic collaboration with E.ON to enable AI -powered digital workplace transformation across Europe. Dr. Victoria Ossadnik, COO Digital and Innovation, E.ON, said, “At E.ON, we are playmakers for new energy. Digitalization and digital technology are key for reliable, affordable and sustainable energy systems. Our strategic partnership with Infosys is essential for our digital transformation and operation - together, we are paving the way for a smarter, more efficient energy future.” 4. Infosys announced the expansion of its strategic collaboration with DNB Bank ASA (DNB) to accelerate the bank’s digital transformation. Elin Sandnes, COO and Group Executive Vice President Technology & Services, DNB, said, “At DNB, we are focused on leveraging technology to create great customer experiences. As part of this, we are constantly developing new products and services while simultaneously driving a digital transformation agenda that is deeply rooted across all our operations. With our extended collaboration with Infosys, we are modernizing our IT infrastructure and leveraging advanced technologies like AI and ML to enable seamless, personalized, and agile services to our customers. This partnership allows us to proactively address our customers’ evolving needs and ensure they receive the best possible banking experience from DNB.” 5. Infosys announced a strategic collaboration with Yorkshire Building Society, one of the largest member-owned financial institutions in the UK, to accelerate its digital transformation. Patrick Connolly, Director of Change Delivery, Yorkshire Building Society, said, "This collaboration is crucial to achieving our 2030 ambitions and realising the true potential of this organisation. The choices we make now will shape our future, and we are committed to combining the convenience of digital with the warmth of human interaction. This transformation will empower our members and colleagues with the tools and services needed to deliver great customer outcomes, including major investments such as faster payments and enhanced security. It’s a key part of our plan for continued growth, innovation, and efficiency, ensuring we continue to serve our members for generations to come.”
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IFRS – INR Press Release Infosys Limited – Press Release Page 3 of 8 6. Infosys and Spark New Zealand announced a strategic agreement to support the transformation of Spark’s technology delivery model through digital innovation. Matt Bain, Data and Marketing Director, Spark, said, “Infosys has collaborated with Spark for over 16 years, working alongside our local teams to support the applications that enable Spark to deliver new products and digital experiences for our customers. We are now building on this relationship to allow our teams to focus on our technology strategy and the product roadmaps that will grow our competitive advantage, while leveraging Infosys’ global scale to execute these plans quickly and efficiently and accessing Infosys’ investment in AI and innovation to enable us to keep delivering great experiences for our customers.” 7. Infosys collaborated with Perfection Fresh to enable seamless tracking of their sustainability efforts. Francesco Oliveri, Chief Information Officer, Perfection Fresh Australia, said, “Our Partnership with Infosys to implement Microsoft Sustainability Manager has helped us in providing real -time visibility of produce across all locations thereby improving operational efficiency, audit transparency and reducing wastage. Originally planned for just 4 sites, the rollout extended to all 17 locations thanks to I nfosys’ expertise and collaboration. It was also their vision and commitment to sustainability that matched our vision that allowed us to be more comfortable in working with Infosys. The partnership has been instrumental in driving key milestones for Perfection Fresh’s sustainability roadmap”. 8. Infosys Finacle announced a strategic collaboration with Bank of Sydney (BoS) to power its digital transformation with Infosys Finacle Digital Banking Suite. Melos Sulicich, Chief Executive Officer, Bank of Sydney, said, “At Bank of Sydney, our strategic goal is to become the leading deposit bank in Australia and to drive significant business growth in the coming years. This requires adapting to rapidly changing customer needs, digital advancements, and regulatory requirements. Transforming our technology stack, centered around our core and digital banking platform, is crucial to meeting these objectives. With Infosys Finacle, we have a proven transformation partner and a next-generation banking platform to address the evolving needs of our business, customers, and regulatory ecosystem.” 9. Infosys BPM announced the launch of AI agents for invoice processing within its flagship Infosys Accounts Payable on Cloud solution. Harsh Bansal, Chief Financial Officer and Chief Growth Officer, Americana Restaurants, said, “At Americana Restaurants, we are committed to leading digital transformation, and as we scale our operations, intelligent automation is key to achieving greater efficiency and agility. With AI-powered Infosys Accounts Payable on Cloud, we have made invoice processing faster, enhanced accuracy, and improved efficiency. The addition of Agentic AI takes this a step further, reducing manual dependencies and bringing more intelligence and autonomy into our invoice processing. We are delighted that we have pioneered this initiative with Infosys and look forward to closely working with Infosys BPM to lead us collectively into a future of smarter and more agile operations." 10. Infosys announced a three-year strategic collaboration with the Lawn Tennis Association (LTA) to deliver a range of AI -powered innovations, including match insights and immersive fan experiences. Chris Pollard, Managing Director, Commercial & Operations, LTA, said, “We are incredibly excited to witness the historic moment of the HSBC Championships at Queen's Club hosting both WTA and ATP 500 events for the very first time. This milestone marks a significant step in the growth and evolution of this prestigious tournament. We are thrilled to collaborate with Infosys, whose support will b e instrumental in delivering an enhanced fan experience. Infosys' AI and technology innovations will bring a new level of engagement with real -time insights and interactive moments, creating memorable experiences for our fans and contribute to the continued success of the HSBC Championships.”
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IFRS – INR Press Release Infosys Limited – Press Release Page 4 of 8 11. Infosys and Economist Impact announced the launch of The Sustainability Atlas to help businesses navigate a sustainable future. Jonathan Birdwell, Global Head of Policy & Insights, Economist Impact, said, “Over the past decade, Economist Impact has built dozens of indices and published hundreds of reports across a wide range of sustainability topics from food security to plastics management, to climate resilience. But never before have we been able to bring all of that data and insights together in one plac e. Leveraging Infosys’ generative AI capabilities, The Sustainability Atlas provides easily accessible and actionable insights to policy makers and business leaders worldwide.” Recognitions & Awards • Brand & Corporate • Recognized as a Top 100 most valuable brand in the world by Kantar BrandZ and ranked among the most-trusted brands in India and the US • Recognized as one of the top 3 companies (on combined basis) in 5 categories – Best CEO, Best IR Professional, Best IR Program, Best IR Team and Best ESG Program – at the 2025 Asia Executive Team Survey by Extel (formerly Institutional Investor Research) • Recognized as a Great Place to Work 2025-2026 in India and China • Infosys BPM won at the Diversity Charter Awards 2025 in the 'Employer Supporting Women in the Workplace' category for its HR initiative, namely 'Empower with Care' • Infosys BPM won the PeopleFirst HR Excellence Awards 2025 for ‘Leading Practices’ in Learning & Development • Digital, AI and Cloud Services • Positioned as a leader in the Everest Group: Microsoft Modern Work Services PEAK Matrix® Assessment 2025 • Positioned as a leader in the Everest Group: Marketing Services PEAK Matrix® Assessment 2025 • Positioned as a leader in the Everest Group: Talent Readiness for Next-generation Application Services PEAK Matrix® Assessment 2025 • Recognized as a leader in HFS Horizons: The Best of Engineering Research and Development Service Providers, 2025 • Recognized as a leader in the Constellation Research: Constellation ShortList ™ Cross- Platform Agentic AI • Recognized as a leader in Datos: The New Era of Check Fraud Detection: A Guide to Market Solutions • Infosys BPM recognized as a Leader in ISG Provider Lens™ Global Capability Center (GCC) Services 2025 Study
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IFRS – INR Press Release Infosys Limited – Press Release Page 5 of 8 • Infosys BPM recognized as a Leader in ISG Provider Lens ™ Procurement Services 2025 Study • Received the Customer Innovation Award from Databricks for delivering impactful solutions across industries • Received Global System Integrator of the Year-EMEA award at Stibo's PATH Summit 2025 • Industry & Solutions • Positioned as a leader in the Everest Group: Life Sciences Digital Services PEAK Matrix® Assessment 2025 • Positioned as a leader in the Everest Group: Life Sciences Enterprise Platform Services PEAK Matrix® Assessment 2025 • Positioned as a leader in the Everest Group: Retail Services PEAK Matrix® Assessment 2025 • Recognized as a leader in HFS Horizons: Energy and Utilities Service Providers, 2025 • Recognized as a leader in HFS Horizons: Intelligent Retail and CPG Ecosystems, 2025 • Recognized as a leader in HFS Horizons: Insurance Services, 2025 • Infosys Finacle recognized as a Market Leader in the Datos Matrix: Virtual Account Management Providers 2025 report. • Infosys Finacle won two awards at IBS Intelligence Digital Banking Awards 2025: ‘Regional Winners | Middle East – Zand Bank & Infosys Finacle’ and ‘Segment Winner | Corporate Banking - Zand Bank & Infosys Finacle’ • Infosys Finacle won two awards at the MEA Finance Banking Technology Awards 2025: ‘Best Composable Banking Solutions Provider of the Year’ and ‘ Best Corporate Banking Solutions Provider’ • Infosys Finacle won four awards at Finnovex North Africa – Egypt 2025: ‘Excellence in Banking Platform Modernization with ALEXBANK Egypt’, ‘Excellence in Seamless Banking Experiences with Export Development Bank of Egypt ’, ‘ Excellence in Core Banking Transformation with Agricultural Bank of Egypt ’ and ‘ Excellence in Composable Banking Platform Read more about our Awards & Recognitions here.
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IFRS – INR Press Release Infosys Limited – Press Release Page 6 of 8 About Infosys Infosys is a global leader in next -generation digital services and consulting. Over 3 20,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities. We enable clients in 5 9 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, as they navigate their digital transformation powered by cloud and AI. We enabl e them with an AI -first core, empower the business with agile digital at scale and drive continuous improvement with always -on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem. We are deeply committed to being a well -governed, environmentally sustainable organization where diverse talent thrives in an inclusive workplace. Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next. Safe Harbor Certain statements in this release concerning our future growth prospects, our future financial or operating performance, and the McCamish cybersecurity incident are forward looking statements intended to qualify for the 'safe harbor' under the Private Sec urities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results or outcomes to differ materially from those in such forward -looking statements. The risks and uncertainties relating to these statement s include, but are not limited to, risks and uncertainties regarding the execution of our business strategy, increased competition for talent, our ability to attract and retain personnel, increase in wages, investments to reskill our employees, our ability to effectively implement a hybrid working model, economic uncertainties and geo-political situations, technological disruptions and innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, our corporate actions including acquisitions, the outcome of pending litigation, the amount of any additional costs resulting directly or indirectly from the McCamish cybersecurity incident, and the outcome of the government investigation. Important factors that may cause actual results or outcomes to differ from those implied by the forward -looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20 -F for the fiscal year ended March 31, 2025. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward- looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not underta ke to update any forward -looking statements that may be made from time to time by or on behalf of the Company unless it is required by law. Contact Investor Relations Sandeep Mahindroo +91 80 3980 1018 Sandeep_Mahindroo@infosys.com Media Relations Rishi Basu +91 80 4156 3998 Rajarshi.Basu@infosys.com Harini Babu +1 469 996 3516 Harini_Babu@infosys.com
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IFRS – INR Press Release Infosys Limited – Press Release Page 7 of 8 Infosys Limited and subsidiaries Extracted from the Condensed Consolidated Balance Sheet under IFRS as at: (in ₹ crore) June 30, 2025 March 31, 2025 ASSETS Current assets Cash and cash equivalents 27,459 24,455 Current investments 7,606 12,482 Trade receivables 32,414 31,158 Unbilled revenue 13,617 12,851 Other current assets 15,322 16,153 Total current assets 96,418 97,099 Non-current assets Property, plant and equipment and Right-of-use assets 19,066 19,111 Goodwill and other Intangible assets 14,294 12,872 Non-current investments 10,643 11,059 Unbilled revenue 2,246 2,232 Other non-current assets 6,952 6,530 Total non-current assets 53,201 51,804 Total assets 149,619 148,903 LIABILITIES AND EQUITY Current liabilities Trade payables 3,616 4,164 Unearned revenue 8,527 8,492 Employee benefit obligations 3,299 2,908 Other current liabilities and provisions 28,762 27,286 Total current liabilities 44,204 42,850 Non-current liabilities Lease liabilities 5,943 5,772 Other non-current liabilities 4,118 4,078 Total non-current liabilities 10,061 9,850 Total liabilities 54,265 52,700 Total equity attributable to equity holders of the company 94,954 95,818 Non-controlling interests 400 385 Total equity 95,354 96,203 Total liabilities and equity 149,619 148,903 Extracted from the Condensed Consolidated statement of Comprehensive Income under IFRS for: (in ₹ crore except per equity share data) 3 months ended June 30, 2025 3 months ended June 30, 2024 Revenues 42,279 39,315 Cost of sales 29,224 27,177 Gross profit 13,055 12,138 Operating expenses: Selling and marketing expenses 2,208 1,937 Administrative expenses 2,044 1,913 Total operating expenses 4,252 3,850 Operating profit 8,803 8,288 Other income, net (3) 937 733 Profit before income taxes 9,740 9,021 Income tax expense 2,816 2,647 Net profit (before non-controlling interest) 6,924 6,374 Net profit (after non-controlling interest) 6,921 6,368 Basic EPS (₹) 16.70 15.38 Diluted EPS (₹) 16.68 15.35
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IFRS – INR Press Release Infosys Limited – Press Release Page 8 of 8 NOTES: 1. The above information is extracted from the audited condensed consolidated Balance sheet and Statement of Comprehensive Income for the quarter ended June 30, 2025, which have been taken on record at the Board meeting held on July 23, 2025. 2. A Fact Sheet providing the operating metrics of the Company can be downloaded from www.infosys.com. 3. Other income is net of Finance Cost.
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IFRS – USD Press Release Infosys Limited – Press Release Page 1 of 8 1\ Bengaluru, India – July 23, 2025: Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $4,941 million in Q1 revenues, year on year growth of 3.8% and sequential growth of 2.6% in constant currency. Operating margin was at 20.8%. Free cash flow generation was strong at $884 million, 109.3% of net profit. TCV of large deal wins was $3.8 billion, with 55% net new. ROE improved by 140 bps to 30.4%. "Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees”, said Salil Parekh, CEO and MD. “Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships”, he added. Guidance for FY26: • Revenue growth of 1%-3% in constant currency • Operating margin of 20%-22% Key highlights: “Q1 performance is a clear reflection of our unwavering focus on multiple fronts resulting in strong growth at 2.6% QoQ, resilient margins at 20.8% and EPS increase of 8.6% YoY. We continue to leverage Project Maximus to make investments in strategic priorities to drive profitable growth and enhance shareholder value”, said Jayesh Sanghrajka, CFO . “Cash flow conversion was well above 100% for the fifth consecutive quarter . The impact of currency volatility was e ffectively managed through our proactive hedging strategy”, he added. IFRS – USD Press Release e For the quarter ended June 30, 2025 • Revenues in CC terms grew by 3.8% YoY and by 2.6% QoQ • Reported revenues at $4,941 million, growth of 4.8% YoY • Operating margin at 20.8%, decline of 0.3% YoY and decline of 0.2% QoQ • Basic EPS at $0.20, increase of 5.8% YoY • FCF at $884 million, decline of 19.2% YoY; FCF conversion at 109.3% of net profit $3.8 Bn Large Deal TCV (55% Net New) 20.8% Operating Margin 2.6% QoQ 3.8% YoY CC Growth 8.6% YoY EPS Increase (₹ terms) $884 Mn Free Cash Flow Industry-leading Sequential Growth of 2.6% in CC, Driven by Differentiated Value Proposition in Enterprise AI Large Deal Wins at $3.8 Billion with 55% Net New; Demonstrating Deep Competitive Advantage in Consolidation Play FY26 Revenue Guidance Revised to 1%-3% and Margin Guidance Retained at 20%-22%
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IFRS – USD Press Release Infosys Limited – Press Release Page 2 of 8 Client wins & Testimonials 1. Infosys announced the extension of its strategic collaboration with Select Portfolio Servicing, Inc. (SPS) to help drive greater operational efficiency and service quality through a fully managed services offering encompassing hybrid cloud solutions, appli cation portfolio, IT operations, IaaS, SaaS, security operations and quality assurance. Murali Palanganatham, Chief Information Officer, SPS , said, "Infosys has been a key strategic partner over the last 20 years. SPS will leverage Infosys Topaz for AI adoption across the business, technology, and enterprise functions to continuously enhance availability, scalability, performance, resiliency, security, and stability. This collaboration is critical and will help SPS enhance flexibility, efficiency, and pr edictability of our technology ecosystem.” 2. Infosys extend ed its strategic collaboration with AIB to accelerate its digital transformation initiatives. Graham Fagan, Group Chief Technology Officer, AIB , said, "This extended collaboration with Infosys aligns strongly with our vision to progressively modernise our technology and data capabilities to deliver the best outcomes for our customers and further accelerate our transformation. By combining our collective expertise and experience, we will deliver on our customer-first commitment and enhance operational efficiency and resilience. Infosys has been a trusted innovation partner, and we are excited about this next chapter in our collaboration as we work together to ensure AIB remains at the forefront of digital transformation in the Irish banking industry." 3. Infosys announced a strategic collaboration with E.ON to enable AI -powered digital workplace transformation across Europe. Dr. Victoria Ossadnik, COO Digital and Innovation, E.ON, said, “At E.ON, we are playmakers for new energy. Digitalization and digital technology are key for reliable, affordable and sustainable energy systems. Our strategic partnership with Infosys is essential for our digital transformation and operation - together, we are paving the way for a smarter, more efficient energy future.” 4. Infosys announced the expansion of its strategic collaboration with DNB Bank ASA (DNB) to accelerate the bank’s digital transformation. Elin Sandnes, COO and Group Executive Vice President Technology & Services, DNB, said, “At DNB, we are focused on leveraging technology to create great customer experiences. As part of this, we are constantly developing new products and services while simultaneously driving a digital transformation agenda that is deeply rooted across all our operations. With our extended collaboration with Infosys, we are modernizing our IT infrastructure and leveraging advanced technologies like AI and ML to enable seamless, personalized, and agile services to our customers. This partnership allows us to proactively address our customers’ evolving needs and ensure they receive the best possible banking experience from DNB.” 5. Infosys announced a strategic collaboration with Yorkshire Building Society, one of the largest member-owned financial institutions in the UK, to accelerate its digital transformation. Patrick Connolly, Director of Change Delivery, Yorkshire Building Society, said, "This collaboration is crucial to achieving our 2030 ambitions and realising the true potential of this organisation. The choices we make now will shape our future, and we are committed to combining the convenience of digital with the warmth of human interaction. This transformation will empower our members and colleagues with the tools and services needed to deliver great customer outcomes, including major investments such as faster payments and enhanced security. It’s a key part of our plan for continued growth, innovation, and efficiency, ensuring we continue to serve our members for generations to come.”
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IFRS – USD Press Release Infosys Limited – Press Release Page 3 of 8 6. Infosys and Spark New Zealand announced a strategic agreement to support the transformation of Spark’s technology delivery model through digital innovation. Matt Bain, Data and Marketing Director, Spark, said, “Infosys has collaborated with Spark for over 16 years, working alongside our local teams to support the applications that enable Spark to deliver new products and digital experiences for our customers. We are now building on this relationship to allow our teams to focus on our technology strategy and the product roadmaps that will grow our competitive advantage, while leveraging Infosys’ global scale to execute these plans quickly and efficiently and accessing Infosys’ investment in AI and innovation to enable us to keep delivering great experiences f or our customers.” 7. Infosys collaborated with Perfection Fresh to enable seamless tracking of their sustainability efforts. Francesco Oliveri, Chief Information Officer, Perfection Fresh Australia, said, “Our Partnership with Infosys to implement Microsoft Sustainability Manager has helped us in providing real -time visibility of produce across all locations thereby improving operational efficiency, audit transparency and reducing wastage. Originally planned for just 4 sites, the rollout extended to all 17 locations thanks to Infosys’ expertise and collaboration. It was also their vision and commitment to sustainability that matched our vision that allowed us to be more comfortable in working with Infosys. The partnership has been instrumental in driving key milestones for Perfection Fresh’s sustainability roadmap”. 8. Infosys Finacle announced a strategic collaboration with Bank of Sydney (BoS) to power its digital transformation with Infosys Finacle Digital Banking Suite. Melos Sulicich, Chief Executive Officer, Bank of Sydney, said, “At Bank of Sydney, our strategic goal is to become the leading deposit bank in Australia and to drive significant business growth in the coming years. This requires adapting to rapidly changing customer needs, digital advancements, and regulatory requirements. Transforming our technology stack, centered around our core and digital banking platform, is crucial to meeting these objectives. With Infosys Finacle, we have a proven transformation partner and a next-generation banking platform to address the evolving needs of our business, custome rs, and regulatory ecosystem.” 9. Infosys BPM announced the launch of AI agents for invoice processing within its flagship Infosys Accounts Payable on Cloud solution. Harsh Bansal, Chief Financial Officer and Chief Growth Officer, Americana Restaurants, said, “At Americana Restaurants, we are committed to leading digital transformation, and as we scale our operations, intelligent automation is key to achieving greater efficiency and agility. With AI-powered Infosys Accounts Payable on Cloud, we have made invoice processing faster, enhanced accuracy, and improved efficiency. The addition of Agentic AI takes this a step further, reducing manual dependencies and bringing more intelligence and autonomy into our invoice processing. We are delighted that we have pioneered this initiative with Infosys and look forward to closely working with Infosys BPM to lead us collectively into a future of smarter and more agile operations." 10. Infosys announced a three-year strategic collaboration with the Lawn Tennis Association (LTA) to deliver a range of AI -powered innovations, including match insights and immersive fan experiences. Chris Pollard, Managing Director, Commercial & Operations, LTA, said, “We are incredibly excited to witness the historic moment of the HSBC Championships at Queen's Club hosting both WTA and ATP 500 events for the very first time. This milestone marks a significant step in the growth and evolution of this prestigio us tournament. We are thrilled to collaborate with Infosys, whose support will be instrumental in delivering an enhanced fan experience. Infosys' AI and technology innovations will bring a new level of engagement with real -time insights and interactive moments, creating memorable experiences for our fans and contribute to the continued success of the HSBC Championships.”
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IFRS – USD Press Release Infosys Limited – Press Release Page 4 of 8 11. Infosys and Economist Impact announced the launch of The Sustainability Atlas to help businesses navigate a sustainable future. Jonathan Birdwell, Global Head of Policy & Insights, Economist Impact, said, “Over the past decade, Economist Impact has built dozens of indices and published hundreds of reports across a wide range of sustainability topics from food security to plastics management, to climate resilience. But never before have we been able to bring all of that data and insights together in one plac e. Leveraging Infosys’ generative AI capabilities, The Sustainability Atlas provides easily accessible and actionable insights to policy makers and business leaders worldwide.” Recognitions & Awards • Brand & Corporate • Recognized as a Top 100 most valuable brand in the world by Kantar BrandZ and ranked among the most-trusted brands in India and the US • Recognized as one of the top 3 companies (on combined basis) in 5 categories – Best CEO, Best IR Professional, Best IR Program, Best IR Team and Best ESG Program – at the 2025 Asia Executive Team Survey by Extel (formerly Institutional Investor Research) • Recognized as a Great Place to Work 2025-2026 in India and China • Infosys BPM won at the Diversity Charter Awards 2025 in the 'Employer Supporting Women in the Workplace' category for its HR initiative, namely 'Empower with Care' • Infosys BPM won the PeopleFirst HR Excellence Awards 2025 for ‘Leading Practices’ in Learning & Development • Digital, AI and Cloud Services • Positioned as a leader in the Everest Group: Microsoft Modern Work Services PEAK Matrix® Assessment 2025 • Positioned as a leader in the Everest Group: Marketing Services PEAK Matrix® Assessment 2025 • Positioned as a leader in the Everest Group: Talent Readiness for Next-generation Application Services PEAK Matrix® Assessment 2025 • Recognized as a leader in HFS Horizons: The Best of Engineering Research and Development Service Providers, 2025 • Recognized as a leader in the Constellation Research: Constellation ShortList ™ Cross- Platform Agentic AI • Recognized as a leader in Datos: The New Era of Check Fraud Detection: A Guide to Market Solutions • Infosys BPM recognized as a Leader in ISG Provider Lens™ Global Capability Center (GCC) Services 2025 Study
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IFRS – USD Press Release Infosys Limited – Press Release Page 5 of 8 • Infosys BPM recognized as a Leader in ISG Provider Lens ™ Procurement Services 2025 Study • Received the Customer Innovation Award from Databricks for delivering impactful solutions across industries • Received Global System Integrator of the Year-EMEA award at Stibo's PATH Summit 2025 • Industry & Solutions • Positioned as a leader in the Everest Group: Life Sciences Digital Services PEAK Matrix® Assessment 2025 • Positioned as a leader in the Everest Group: Life Sciences Enterprise Platform Services PEAK Matrix® Assessment 2025 • Positioned as a leader in the Everest Group: Retail Services PEAK Matrix® Assessment 2025 • Recognized as a leader in HFS Horizons: Energy and Utilities Service Providers, 2025 • Recognized as a leader in HFS Horizons: Intelligent Retail and CPG Ecosystems, 2025 • Recognized as a leader in HFS Horizons: Insurance Services, 2025 • Infosys Finacle recognized as a Market Leader in the Datos Matrix: Virtual Account Management Providers 2025 report. • Infosys Finacle won two awards at IBS Intelligence Digital Banking Awards 2025: ‘Regional Winners | Middle East – Zand Bank & Infosys Finacle’ and ‘Segment Winner | Corporate Banking - Zand Bank & Infosys Finacle’ • Infosys Finacle won two awards at the MEA Finance Banking Technology Awards 2025: ‘Best Composable Banking Solutions Provider of the Year’ and ‘ Best Corporate Banking Solutions Provider’ • Infosys Finacle won four awards at Finnovex North Africa – Egypt 2025: ‘Excellence in Banking Platform Modernization with ALEXBANK Egypt’, ‘Excellence in Seamless Banking Experiences with Export Development Bank of Egypt ’, ‘ Excellence in Core Banking Transformation with Agricultural Bank of Egypt ’ and ‘ Excellence in Composable Banking Platform Read more about our Awards & Recognitions here.
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IFRS – USD Press Release Infosys Limited – Press Release Page 6 of 8 About Infosys Infosys is a global leader in next -generation digital services and consulting. Over 320,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities. We enable clients in 59 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, as they navigate their digital transformation powered by cloud and AI. We enable them with an AI -first core, empower the business with agile digital at scale and drive continuous improvement with always -on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem. We are deeply committed to being a well -governed, environmentally sustainable organization where diverse talent thrives in an inclusive workplace. Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next. Safe Harbor Certain statements in this release concerning our future growth prospects, our future financial or operating performance, and the McCamish cybersecurity incident are forward looking statements intended to qualify for the 'safe harbor' under the Private Sec urities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results or outcomes to differ materially from those in such forward -looking statements. The risks and uncertainties relating to these statement s include, but are not limited to, risks and uncertainties regarding the execution of our business strategy, increased competition for talent, our ability to attract and retain personnel, increase in wages, investments to reskill our employees, our ability to effectively implement a hybrid working model, economic uncertainties and geo-political situations, technological disruptions and innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, our corporate actions including acquisitions, the outcome of pending litigation, the amount of any additional costs resulting directly or indirectly from the McCamish cybersecurity incident, and the outcome of the government investigation. Important factors that may cause actual results or outcomes to differ from those implied by the forward -looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20 -F for the fiscal year ended March 31, 2025. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward- looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not underta ke to update any forward -looking statements that may be made from time to time by or on behalf of the Company unless it is required by law. Contact Investor Relations Sandeep Mahindroo +91 80 3980 1018 Sandeep_Mahindroo@infosys.com Media Relations Rishi Basu +91 80 4156 3998 Rajarshi.Basu@infosys.com Harini Babu +1 469 996 3516 Harini_Babu@infosys.com
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IFRS – USD Press Release Infosys Limited – Press Release Page 7 of 8 Infosys Limited and subsidiaries Extracted from the Condensed Consolidated Balance Sheet under IFRS as at: (Dollars in millions) June 30, 2025 March 31, 2025 ASSETS Current assets Cash and cash equivalents 3,202 2,861 Current investments 887 1,460 Trade receivables 3,780 3,645 Unbilled revenue 1,588 1,503 Other current assets 1,787 1,890 Total current assets 11,244 11,359 Non-current assets Property, plant and equipment and Right-of-use assets 2,223 2,235 Goodwill and other Intangible assets 1,666 1,505 Non-current investments 1,241 1,294 Unbilled revenue 262 261 Other non-current assets 811 765 Total non-current assets 6,203 6,060 Total assets 17,447 17,419 LIABILITIES AND EQUITY Current liabilities Trade payables 422 487 Unearned revenue 994 994 Employee benefit obligations 385 340 Other current liabilities and provisions 3,353 3,191 Total current liabilities 5,154 5,012 Non-current liabilities Lease liabilities 693 675 Other non-current liabilities 480 477 Total non-current liabilities 1,173 1,152 Total liabilities 6,327 6,164 Total equity attributable to equity holders of the company 11,069 11,205 Non-controlling interests 51 50 Total equity 11,120 11,255 Total liabilities and equity 17,447 17,419 Extracted from the Condensed Consolidated statement of Comprehensive Income under IFRS for: (Dollars in millions except per equity share data) 3 months ended June 30, 2025 3 months ended June 30, 2024 Revenues 4,941 4,714 Cost of sales 3,416 3,259 Gross profit 1,525 1,455 Operating expenses: Selling and marketing expenses 258 232 Administrative expenses 239 229 Total operating expenses 497 461 Operating profit 1,028 994 Other income, net (3) 110 88 Profit before income taxes 1,138 1,082 Income tax expense 329 318 Net profit (before non-controlling interest) 809 764 Net profit (after non-controlling interest) 809 763 Basic EPS ($) 0.20 0.18 Diluted EPS ($) 0.19 0.18
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IFRS – USD Press Release Infosys Limited – Press Release Page 8 of 8 NOTES: 1. The above information is extracted from the audited condensed consolidated Balance sheet and Statement of Comprehensive Income for the quarter ended June 30, 2025, which have been taken on record at the Board meeting held on July 23, 2025. 2. A Fact Sheet providing the operating metrics of the Company can be downloaded from www.infosys.com. 3. Other income is net of Finance Cost.
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Index Page No. Condensed Consolidated Balance Sheet………………………………………………………………………………..1 Condensed Consolidated Statement of Comprehensive Income………………………………………………………..2 Condensed Consolidated Statement of Changes in Equity ……………………………………..……………………………………..3 Condensed Consolidated Statement of Cash Flows……………………………………………………………………….5 Overview and Notes to the Interim Condensed Consolidated Financial Statements 1. Overview 1.1 Company overview …………………………………………………….…………………………………………………….6 1.2 Basis of preparation of financial statements …………………………………………………….…………………………………………………….6 1.3 Basis of consolidation……………………………………………………………………………… 6 1.4 Use of estimates and judgments…………………………………………………………………. 6 1.5 Critical accounting estimates and judgments…………………………………………………… 6 1.6 Recent accounting pronouncements…………………………………………………………….. 7 2. Notes to the Interim Condensed Consolidated Financial Statements 2.1 Cash and cash equivalents ……………………………………………………………………….. 8 2.2 Investments…………………………………………………………………………………………….. 8 2.3 Financial instruments………………………………………………………………………………. 9 2.4 Prepayments and other assets………………………………………………………………………. 12 2.5 Other liabilities……………………………………………………………………………………….. 13 2.6 Provisions and other contingencies……………………………………………………………………………………………14 2.7 Property, plant and equipment……………………………………………………………………….. 15 2.8 Leases……………………..……………………………………………………………………….. 16 2.9 Goodwill and Intangible assets...……………………………………………………………..... 17 2.10 Business combinations ………………………………...………………………………………. 18 2.11 Employees' Stock Option Plans (ESOP)…………………………………………………………………………19 2.12 Income Taxes……………………………………………………………………………………. 21 2.13 Earnings per equity share…………………………………………………………………………………….21 2.14 Related party transactions………………………………………………………………………………………………..22 2.15 Segment reporting…………………………………………………………………………………………23 2.16 Revenue from Operations…………………………………………………………………………………..24 2.17 Unbilled Revenue……………………………………………………………………………….. 25 2.18 Equity…………………….………………………………………………………………………… 26 2.19 Break-up of expenses and other income, net………………...……………………………………………………………28 INFOSYS LIMITED AND SUBSIDIARIES Condensed Consolidated Financial Statements under International Financial Reporting Standards (IFRS) in US Dollars for the three months ended June 30, 2025 X
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Infosys Limited and subsidiaries (Dollars in millions except equity share data) Condensed Consolidated Balance Sheet as at Note June 30, 2025 March 31, 2025 ASSETS Current assets Cash and cash equivalents 2.1 3,202 2,861 Current investments 2.2 887 1,460 Trade receivables 3,780 3,645 Unbilled revenue 2.17 1,588 1,503 Prepayments and other current assets 2.4 1,432 1,519 Income tax assets 2.12 347 348 Derivative financial instruments 2.3 8 23 Total current assets 11,244 11,359 Non-current assets Property, plant and equipment 2.7 1,484 1,497 Right-of-use assets 2.8 739 738 Goodwill 2.9 1,296 1,182 Intangible assets 370 323 Non-current investments 2.2 1,241 1,294 Unbilled revenue 2.17 262 261 Deferred income tax assets 2.12 148 130 Income tax assets 2.12 195 190 Other non-current assets 2.4 468 445 Total Non-current assets 6,203 6,060 Total assets 17,447 17,419 Current liabilities Trade payables 422 487 Lease liabilities 2.8 296 287 Derivative financial instruments 2.3 34 7 Current income tax liabilities 2.12 707 567 Unearned revenue 994 994 Employee benefit obligations 385 340 Provisions 2.6 167 173 Other current liabilities 2.5 2,149 2,157 Total current liabilities 5,154 5,012 Non-current liabilities Lease liabilities 2.8 693 675 Deferred income tax liabilities 2.12 204 202 Employee benefit obligations 12 11 Other non-current liabilities 2.5 264 264 Total Non-current liabilities 1,173 1,152 Total liabilities 6,327 6,164 Equity 2.18 325 325 Share premium 521 500 Retained earnings 13,763 13,766 Cash flow hedge reserves (1) (2) Other reserves 927 1,171 Capital redemption reserve 24 24 Other components of equity (4,490) (4,579) Total equity attributable to equity holders of the Company 11,069 11,205 Non-controlling interests 51 50 Total equity 11,120 11,255 Total liabilities and equity 17,447 17,419 The accompanying notes form an integral part of the interim condensed consolidated financial statements. As per our report of even date attached for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm’s Registration No: 117366W/ W-100018 Vikas Bagaria Nandan M. Nilekani Bobby Parikh Partner Chairman Director Membership No. 060408 Bengaluru Jayesh Sanghrajka July 23, 2025 Chief Financial Officer LIABILITIES AND EQUITY Share capital - ₹5 ($0.16) par value 4,800,000,000 (4,800,000,000) equity shares authorized, issued and outstanding 4,145,174,219 (4,143,607,528) equity shares fully paid up, net of 9,098,409 (9,655,927) treasury shares as at June 30, 2025 (March 31, 2025) Salil Parekh Chief Executive Officer and Managing Director Company Secretary A.G.S. Manikantha X 1
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(Dollars in millions except equity share and per equity share data) June 30, 2025 June 30, 2024 Revenues 2.16 4,941 4,714 Cost of sales 2.19 3,416 3,259 Gross profit 1,525 1,455 Operating expenses Selling and marketing expenses 2.19 258 232 Administrative expenses 2.19 239 229 Total operating expenses 497 461 Operating profit 1,028 994 Other income, net 2.19 122 101 Finance cost 12 13 Profit before income taxes 1,138 1,082 Income tax expense 2.12 329 318 Net profit 809 764 Other comprehensive income Items that will not be reclassified subsequently to profit or loss Remeasurement of the net defined benefit liability/asset, net (8) 2 Equity instruments through other comprehensive income, net 4 2 (4) 4 Items that will be reclassified subsequently to profit or loss Fair value changes on investments, net 14 5 Fair value changes on derivatives designated as cash flow hedge, net 1 - Exchange differences on translation of foreign operations 80 (11) 95 (6) Total other comprehensive income/(loss), net of tax 91 (2) Total comprehensive income 900 762 Profit attributable to: Owners of the Company 809 763 Non-controlling interests - 1 809 764 Total comprehensive income attributable to: Owners of the Company 899 761 Non-controlling interests 1 1 900 762 Earnings per equity share Basic ($) 0.20 0.18 Diluted ($) 0.19 0.18 Basic (in shares) 2.13 4,143,971,592 4,140,272,627 Diluted (in shares) 2.13 4,150,497,004 4,148,077,672 The accompanying notes form an integral part of the interim condensed consolidated financial statements. As per our report of even date attached for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm’s Registration No: 117366W/ W-100018 Vikas Bagaria Nandan M. Nilekani Bobby Parikh Partner Chairman Director Membership No. 060408 Bengaluru Jayesh Sanghrajka July 23, 2025 Chief Financial Officer Company Secretary Three months ended A.G.S. Manikantha Infosys Limited and subsidiaries Salil Parekh Chief Executive Officer and Managing Director Weighted average equity shares used in computing earnings per equity share Condensed Consolidated Statement of Comprehensive Income for the Note X 2
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Condensed Consolidated Statement of Changes in Equity (Dollars in millions except equity share data) Number of Shares(1) Share capital Share premium Retained earnings Other reserves(2) Capital redemption reserve Cash flow hedge reserve Other components of equity Total equity attributable to equity holders of the Company Non- controlling interest Total equity Balance as at April 1, 2024 4,139,950,635 325 425 12,557 1,623 24 1 (4,396) 10,559 46 10,605 Net profit - - - 763 - - - - 763 1 764 - - - - - - - 2 2 - 2 - - - - - - - 2 2 - 2 - - - - - - - (11) (11) - (11) - - - - - - - 5 5 - 5 - - - 763 - - - (2) 761 1 762 1,831,328 - - - - - - - - - - - - 25 - - - - - 25 - 25 - - (2) 2 - - - - - - - - - - 12 (12) - - - - - - - - - 30 (30) - - - - - - - - - (1,389) - - - - (1,389) - (1,389) 4,141,781,963 325 448 11,975 1,581 24 1 (4,398) 9,956 47 10,003 Equity instruments through other comprehensive income, net* Employee stock compensation expense (Refer to note 2.11) Transfer on account of options not exercised Transferred from other reserves to retained earnings Infosys Limited and subsidiaries Changes in equity for the three months ended June 30, 2024 Remeasurement of the net defined benefit liability/asset, net* Exchange differences on translation of foreign operations Fair value changes on investments, net* Total comprehensive income for the period Shares issued on exercise of employee stock options (Refer to note 2.11) Transferred from other reserves on utilization Dividends# Balance as at June 30, 2024 X 3
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Condensed Consolidated Statement of Changes in Equity (Dollars in millions except equity share data) Number of Shares(1) Share capital Share premium Retained earnings Other reserves(2) Capital redemption reserve Cash flow hedge reserve Other components of equity Total equity attributable to equity holders of the Company Non- controlling interest Total equity Infosys Limited and subsidiaries X Balance as at April 1, 2025 4,143,607,528 325 500 13,766 1,171 24 (2) (4,579) 11,205 50 11,255 Net profit - - - 809 - - - - 809 - 809 - - - - - - - (8) (8) - (8) - - - - - - - 4 4 - 4 - - - - - - 1 - 1 - 1 - - - - - - - 79 79 1 80 - - - - - - - 14 14 - 14 - - - 809 - - 1 89 899 1 900 1,566,691 - - - - - - - - - - - - - (1) - - - - (1) - (1) - - - 1 - - - - 1 - 1 - - 27 - - - - - 27 - 27 - - (6) 6 - - - - - - - - - - 14 (14) - - - - - - - - - 230 (230) - - - - - - - - - (1,062) - - - - (1,062) - (1,062) Balance as at June 30, 2025 4,145,174,219 325 521 13,763 927 24 (1) (4,490) 11,069 51 11,120 * net of tax # net of treasury shares The accompanying notes form an integral part of the interim condensed consolidated financial statements. for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm’s Registration No: 117366W/ W-100018 Vikas Bagaria Nandan M. Nilekani Salil Parekh Bobby Parikh Partner Chairman Chief Executive Officer Director Membership No. 060408 and Managing Director Bengaluru Jayesh Sanghrajka A.G.S. Manikantha July 23, 2025 Chief Financial Officer Company Secretary Fair value changes on derivatives designated as Cash flow hedge, net* Employee stock compensation expense (Refer to note 2.11) Transferred from other reserves on utilization Dividends# (1) excludes treasury shares of 9,098,409 as at June 30, 2025, 9,655,927 as at April 1, 2025, 10,246,512 as at June 30, 2024 and 10,916,829 as at April 1, 2024 held by consolidated trust. (2) Represents the Special Economic Zone Re-investment reserve created out of the profit of the eligible SEZ unit in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act,1961. The reserve should be utilized by the Group for acquiring new plant and machinery for the purpose of its business in terms of the provisions of the Sec 10AA(2) of the Income Tax Act, 1961. As per our report of even date attached for Deloitte Haskins & Sells LLP Transferred from other reserves to retained earnings Transferred on account of options not exercised Exchange differences on translation of foreign operations Shares issued on exercise of employee stock options (Refer to note 2.11) Financial liability under option arrangements Changes in the controlling stake of a subsidiary Equity instruments through other comprehensive income, net* Fair value changes on investments, net* Total comprehensive income for the period Changes in equity for the three months ended June 30, 2025 Remeasurement of the net defined benefit liability/asset, net* 4
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Infosys Limited and subsidiaries Condensed Consolidated Statement of Cash Flows Accounting Policy (Dollars in millions) Particulars Note June 30, 2025 June 30, 2024 Operating activities Net Profit 809 764 Adjustments to reconcile net profit to net cash provided by operating activities Depreciation and amortization 133 138 Interest and dividend income (42) (44) Finance cost 12 13 Income tax expense 2.12 329 318 Exchange differences on translation of assets and liabilities, net 35 3 Impairment loss recognized/(reversed) under expected credit loss model 4 - Stock compensation expense 28 25 Provision for post sale client support (21) (13) Other adjustments 41 5 Changes in working capital Trade receivables and unbilled revenue (227) (60) Prepayments and other assets 83 (20) Trade payables (79) (33) Unearned revenue 2 (46) Other liabilities and provisions 95 - Cash generated from operations 1,202 1,050 Income taxes (paid) / received (219) 100 Net cash generated by operating activities 983 1,150 Investing activities Expenditure on property, plant and equipment and intangibles (99) (56) Deposits placed with Corporation (46) (40) Redemption of deposits placed with Corporation 15 14 Interest and dividend received 36 36 Payment for acquisition of business, net of cash acquired 2.10 (75) (15) Other receipts 1 - Liquid mutual funds units (2,013) (2,036) Certificates of deposit (319) (172) Quoted debt securities (193) (126) Commercial paper (17) (267) Other investments (2) (1) Proceeds on sale of investments Quoted debt securities 350 83 Certificates of deposit 564 338 Commercial paper 450 856 Liquid mutual funds units 1,839 1,915 Net cash generated from investing activities 491 529 Financing activities Payment of lease liabilities (82) (69) Payment of dividends (1,062) - Other payments (6) (14) Net cash used in financing activities (1,150) (83) Net increase/(decrease) in cash and cash equivalents 324 1,596 Effect of exchange rate changes on cash and cash equivalents 17 (4) Cash and cash equivalents at the beginning of the period 2.1 2,861 1,773 Cash and cash equivalents at the end of the period 2.1 3,202 3,365 Supplementary information: Restricted cash balance 2.1 48 48 3,202 3,365 - 1,394 2.1 3,202 1,971 The accompanying notes form an integral part of the interim condensed consolidated financial statements. As per our report of even date attached for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm’s Registration No: 117366W/ W-100018 Vikas Bagaria Nandan M. Nilekani Salil Parekh Bobby Parikh Partner Chairman Chief Executive Officer Director Membership No. 060408 and Managing Director Bengaluru Jayesh Sanghrajka A.G.S. Manikantha July 23, 2025 Chief Financial Officer Company Secretary Closing cash and cash equivalents as per Consolidated Balance Sheet Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Group are segregated. The Group considers all highly liquid investments that are readily convertible to known amounts of cash to be cash equivalents. Three months ended Payments to acquire Investments Closing cash and cash equivalents as per consolidated statement of cash flows Less: Earmarked bank balance for dividend X 5
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INFOSYS LIMITED AND SUBSIDIARIES Overview and Notes to the Interim Condensed Consolidated Financial Statements 1. Overview 1.1 Company overview Infosys Limited ('the Company' or Infosys) provides consulting, technology, outsourcing and next-generation digital services, to enable clients to execute strategies for their digital transformation. Infosys strategic objective is to build a sustainable organization that remains relevant to the agenda of clients, while creating growth opportunities for employees and generating profitable returns for investors. Infosys strategy is to be a navigator for our clients as they ideate, plan and execute on their journey to a digital future. Infosys together with its subsidiaries and controlled trusts is herein after referred to as the "Group". The company is a public limited company incorporated and domiciled in India and has its registered office at Electronics city, Hosur Road, Bengaluru 560100, Karnataka, India. The company has its primary listings on the BSE Ltd. and National Stock Exchange of India Limited. The company’s American Depositary Shares (ADS) representing equity shares are listed on the New York Stock Exchange (NYSE). The Group's interim condensed consolidated financial statements are approved for issue by the company's Board of Directors on July 23, 2025. 1.2 Basis of preparation of financial statements The interim condensed consolidated financial statements have been prepared in compliance with IAS 34, Interim Financial Reporting as issued by International Accounting Standards Board, under the historical cost convention on accrual basis except for certain financial instruments which are measured at fair values, defined benefit liability/(asset) which is recognized at the present value of defined benefit obligation less fair value of plan assets. Accordingly, these interim condensed consolidated financial statements do not include all the information required for a complete set of financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the company’s Annual Report on Form 20-F for the year ended March 31, 2025. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The material accounting policy information used in preparation of the audited interim condensed consolidated financial statements have been discussed in the respective notes. 1.3 Basis of consolidation Infosys consolidates entities which it owns or controls. The interim condensed consolidated financial statements comprise the financial statements of the company, its controlled trusts and its subsidiaries. Control exists when the parent has power over the entity, is exposed, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns by using its power over the entity. Power is demonstrated through existing rights that give the ability to direct relevant activities, those which significantly affect the entity's returns. Subsidiaries are consolidated from the date control commences until the date control ceases. The financial statements of the Group companies are consolidated on a line-by-line basis and intra-group balances and transactions including unrealized gain / loss from such transactions are eliminated upon consolidation. These financial statements are prepared by applying uniform accounting policies in use at the Group. Non-controlling interests which represent part of the net profit or loss and net assets of subsidiaries that are not, directly or indirectly, owned or controlled by the company, are excluded. 1.4 Use of estimates and judgments The preparation of the Interim condensed consolidated financial statements in conformity with IFRS requires Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and reported amounts of revenues and expenses during the period. The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in Note 1.5. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates and judgements are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the interim condensed consolidated financial statements. 1.5 Critical accounting estimates and judgments a. Revenue recognition The Group’s contracts with customers include promises to transfer multiple products and services to a customer. Revenues from customer contracts are considered for recognition and measurement when the contract has been approved, in writing, by the parties to the contract, the parties to contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable. The Group assesses the services promised in a contract and identifies distinct performance obligations in the contract. Identification of distinct performance obligations to determine the deliverables and the ability of the customer to benefit independently from such deliverables, and allocation of transaction price to these distinct performance obligations involves significant judgement. Fixed price maintenance revenue is recognized ratably on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period. Revenue from fixed price maintenance contract is recognized ratably using a percentage of completion method when the pattern of benefits from the services rendered to the customer and Group’s costs to fulfil the contract is not even through the period of the contract because the services are generally discrete in nature and not repetitive. The use of method to recognize the maintenance revenues requires judgment and is based on the promises in the contract and nature of the deliverables. The Group uses the percentage-of-completion method in accounting for other fixed-price contracts. Use of the percentage-of-completion method requires the Group to determine the actual efforts or costs expended to date as a proportion of the estimated total efforts or costs to be incurred. Efforts or costs expended have been used to measure progress towards completion as there is a direct relationship between input and productivity. The estimation of total efforts or costs involves significant judgement and is assessed throughout the period of the contract to reflect any changes based on the latest available information. Contracts with customers includes subcontractor services or third-party vendor equipment or software in certain integrated services arrangements. In these types of arrangements, revenue from sales of third-party vendor products or services is recorded net of costs when the Group is acting as an agent between the customer and the vendor, and gross when the Group is the principal for the transaction. In doing so, the Group first evaluates whether it obtains control of the specified goods or services before they are transferred to the customer. The Group considers whether it is primarily responsible for fulfilling the promise to provide the specified goods or services, inventory risk, pricing discretion and other factors to determine whether it controls the specified goods or services and therefore, is acting as a principal or an agent. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract. X 6
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b. Income taxes The Group's two major tax jurisdictions are India and the United States, though the company also files tax returns in other overseas jurisdictions. Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions. In assessing the realizability of deferred income tax assets, Management considers whether some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax assets are deductible, Management believes that the group will realize the benefits of those deductible differences. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. (Refer to note 2.12) c. Business combinations and intangible assets Business combinations are accounted for using IFRS 3 (Revised), Business Combinations. IFRS 3 requires us to fair value identifiable intangible assets and contingent consideration to ascertain the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. These valuations are conducted by external valuation experts. Estimates are required to be made in determining the value of contingent consideration, value of option arrangements and intangible assets. These measurements are based on information available at the acquisition date and are based on expectations and assumptions that have been deemed reasonable by Management. (Refer to note 2.10 and 2.9.2) d. Property, plant and equipment Property, plant and equipment represent a significant proportion of the asset base of the Group. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Group's assets are determined by Management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology (Refer to note 2.7) e. Impairment of Goodwill Goodwill is tested for impairment on an annual basis and whenever there is an indication that the recoverable amount of a cash generating unit (CGUs) is less than it’s carrying amount. For the impairment test, goodwill is allocated to the CGU or groups of CGUs which benefit from the synergies of the acquisition and which represent the lowest level at which goodwill is monitored for internal management purposes. The recoverable amount of CGUs is determined based on higher of value-in-use and fair value less cost to sell. Key assumptions in the cash flow projections are prepared based on current economic conditions and comprises estimated long term growth rates, weighted average cost of capital and estimated operating margins. (Refer to note 2.9.1) 1.6 Recent accounting pronouncements New and revised IFRS Standards in issue but not yet effective: IFRS 18 Presentation and Disclosures in Financial Statements Presentation and Disclosures in Financial Statements Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures Amendments to the Classification and Measurement of Financial Instruments Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures Contracts Referencing Nature-dependent Electricity IFRS 18 – Presentation and Disclosures in Financial Statements On April 9, 2024, IASB has issued IFRS 18 – Presentation and Disclosures in Financial Statements that will replace IAS 1 Presentation of Financial Statements from its effective date. IFRS 18 introduces new requirements for information presented in the primary financial statements and disclosed in the notes. The new requirements are focused on the statement of profit or loss. IFRS 18 introduces three categories for income and expenses, that is, operating, investing and financing to improve the structure of the income statement. IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, although early adoption is permitted. The Group is yet to evaluate the impact of the amendment. Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures On May 30, 2024, IASB has issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures, which clarifies the classification of financial assets with environmental, social and corporate governance (ESG) and similar features, derecognition of financial liability settled through electronic payment systems and also introduces additional disclosure requirements to enhance transparency for investors regarding investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features. The effective date for adoption of these amendments is annual reporting periods beginning on or after January 1, 2026, although early adoption is permitted. The Group is yet to evaluate the impact of these amendments. On December 18, 2024, IASB has issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures, relating to factors an entity is required to consider in assessing the own-use requirements for contracts to buy and take delivery of nature-dependent renewable electricity; hedge accounting treatment for nature-dependent renewable electricity and related disclosures. The effective date for adoption of these amendments is annual reporting periods beginning on or after January 1, 2026, although early adoption is permitted. The Group has evaluated the amendment and there is no impact on its consolidated financial statements. 7
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2. Notes to the Interim Condensed Consolidated Financial Statements 2.1 Cash and cash equivalents Cash and cash equivalents consist of the following: (Dollars in millions) June 30, 2025 March 31, 2025 Cash and bank deposits 3,202 2,861 Total Cash and cash equivalents 3,202 2,861 2.2 Investments (Dollars in millions) Particulars June 30, 2025 March 31, 2025 (i) Current Investments Amortized Cost Quoted debt securities 22 20 Quoted Debt Securities 284 375 Certificates of deposits 172 410 Commercial Paper - 426 Fair Value through profit or loss Liquid mutual fund units 409 229 Total current investments 887 1,460 (ii) Non-current Investments Amortized Cost Quoted debt securities 128 173 Fair Value through other comprehensive income Quoted debt securities 999 1,014 Quoted equity securities 11 7 Unquoted equity and preference securities 20 20 Fair Value through profit or loss Target maturity fund units 55 54 Unquoted equity and preference securities 3 3 Others(1) 25 23 Total Non-current investments 1,241 1,294 Total investments 2,128 2,754 Investments carried at amortized cost 150 193 Investments carried at fair value through other comprehensive income 1,486 2,252 Investments carried at fair value through profit or loss 492 309 (1) Uncalled capital commitments outstanding as on June 30, 2025 and March 31, 2025 was $13 million and $14 million, respectively. Refer to note 2.3 for accounting policies on financial instruments. Method of fair valuation: (Dollars in millions) Class of Investment Method June 30, 2025 March 31, 2025 Liquid mutual fund units - carried at fair value through profit or loss 409 229 Target maturity fund units - carried at fair value through profit or loss 55 54 Quoted debt securities- carried at amortized cost 164 213 1,283 1,389 Commercial Paper - carried at fair value through other comprehensive income - 426 Certificates of Deposit - carried at fair value through other comprehensive income 172 410 3 3 20 20 Quoted equity securities - carried at fair value through other comprehensive income Quoted price 11 7 Others - carried at fair value through profit or loss 25 23 Total 2,142 2,774 Note: Certain quoted investments are classified as Level 2 in the absence of active market for such investments. Quoted price and market observable inputs Particulars As at Cash and cash equivalents as at June 30, 2025 and March 31, 2025 include restricted cash and bank balances of $48 million and $50 million, respectively. The restrictions are primarily on account of bank balances held by irrevocable trusts controlled by the company. The deposits maintained by the Group with banks comprise of time deposits, which can be withdrawn by the Group at any point without prior notice or penalty on the principal. The carrying value of the investments are as follows: As at Fair Value through other comprehensive income Fair value as at Quoted price Quoted price Discounted cash flows method, Market multiples method, Option pricing model Quoted debt securities- carried at fair value through other comprehensive income Quoted price and market observable inputs Market observable inputs Market observable inputs Unquoted equity and preference securities - carried at fair value through other comprehensive income Discounted cash flows method, Market multiples method, Option pricing model Unquoted equity and preference securities - carried at fair value through profit or loss Discounted cash flows method, Market multiples method, Option pricing model X 8
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2.3 Financial instruments Accounting Policy 2.3.1 Initial recognition 2.3.2 Subsequent measurement a. Non-derivative financial instruments (iv) Financial liabilities (ii) Cash flow hedge 2.3.5 Impairment The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under IFRS 9. A financial liability (or a part of a financial liability) is derecognized from the group's balance sheet when the obligation specified in the contract is discharged or cancelled or expires. 2.3.4 Fair value of financial instruments In determining the fair value of its financial instruments, the Group uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, option pricing model, market multiples, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized. Refer to table ‘Financial instruments by category’ below for the disclosure on carrying value and fair value of financial assets and liabilities. For financial assets and liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the carrying amounts approximate fair value due to the short maturity of these instruments. The Group recognizes loss allowances using the expected credit loss (ECL) model for the financial assets and unbilled revenue which are not fair valued through profit or loss. Loss allowance for trade receivables and unbilled revenues with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The Group determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Group considers current and anticipated future economic conditions relating to industries the Group deals with and the countries where it operates. The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recorded is recognized as an impairment loss or gain in interim condensed consolidated statement of comprehensive income. 2.3.3 Derecognition of financial instruments (iii) Financial assets carried at fair value through profit or loss (FVTPL) A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss. Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration and financial liability under option arrangements recognized in a business combination which is subsequently measured at fair value through profit or loss. b. Derivative financial instruments The Group holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for such contracts is generally a bank. (i) Financial assets or financial liabilities, carried at fair value through profit or loss This category includes derivative financial assets or liabilities which are not designated as hedges. Although the Group believes that these derivatives constitute hedges from an economic perspective, they may not qualify for hedge accounting under IFRS 9, Financial Instruments. Any derivative that is either not designated as hedge, or is so designated but is ineffective as per IFRS 9, is categorized as a financial asset or financial liability carried at fair value through profit or loss. Derivatives not designated as hedges are recognized initially at fair value and attributable transaction costs are recognized in net profit in the statement of comprehensive income when incurred. Subsequent to initial recognition, these derivatives are measured at fair value through profit or loss and the resulting exchange gains or losses are included in other income. Assets/ liabilities in this category are presented as current assets/current liabilities if they are either held for trading or are expected to be realized within 12 months after the balance sheet date. Primarily the Group designates certain foreign exchange forward and options contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash transaction. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedging reserve. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the net profit in the statement of comprehensive income. If the hedging instrument no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the forecasted transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the net profit in the statement of comprehensive income upon the occurrence of the related forecasted transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified to net profit in the interim condensed consolidated statement of comprehensive income. A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Group has made an irrevocable election for certain investments which are classified as equity instruments to present the subsequent changes in fair value in other comprehensive income based on its business model. The Group recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date. (i) Financial assets carried at amortized cost A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. (ii) Financial assets carried at fair value through other comprehensive income (FVOCI) X 9
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Financial instruments by category The carrying value and fair value of financial instruments by categories as at June 30, 2025 were as follows: (Dollars in millions) Designated upon initial recognition Mandatory Equity instruments designated upon initial recognition Mandatory Assets: Cash and cash equivalents (Refer to note 2.1) 3,202 - - - - 3,202 3,202 Investments (Refer to note 2.2) Liquid mutual fund units - - 409 - - 409 409 Target maturity fund units - - 55 - - 55 55 Quoted debt securities 150 - - - 1,283 1,433 1,447 (1) Certificates of deposit - - - - 172 172 172 Quoted equity securities - - - 11 - 11 11 Unquoted equity and preference securities - 3 - 20 - 23 23 Unquoted investment others - - 25 - - 25 25 Trade receivables 3,780 - - - - 3,780 3,780 Unbilled revenues (Refer to note 2.17) (3) 1,236 - - - - 1,236 1,236 Prepayments and other assets (Refer to note 2.4) 857 - - - - 857 850 (2) Derivative financial instruments - - 5 - 3 8 8 Total 9,225 3 494 31 1,458 11,211 11,218 Liabilities: Trade payables 422 - - - - 422 422 Lease liabilities (Refer to note 2.8) 989 - - - - 989 989 Derivative financial instruments - - 31 - 3 34 34 - - 85 - - 85 85 1,911 - 12 - - 1,923 1,923 Total 3,322 - 128 - 3 3,453 3,453 (1) On account of fair value changes including interest accrued (2) Excludes interest accrued on quoted debt securities carried at amortized cost of $7 million (3) Excludes unbilled revenue for contracts where the right to consideration is dependent on completion of contractual milestones The carrying value and fair value of financial instruments by categories as at March 31, 2025 were as follows: (Dollars in millions) Designated upon initial recognition Mandatory Equity instruments designated upon initial recognition Mandatory Assets: Cash and cash equivalents (Refer to note 2.1) 2,861 - - - - 2,861 2,861 Investments (Refer to note 2.2) Liquid mutual fund units - - 229 - - 229 229 Target maturity fund units - - 54 - - 54 54 Quoted debt securities 193 - - - 1,389 1,582 1,602 (1) Certificates of deposit - - - - 410 410 410 Commercial Papers - - - - 426 426 426 Quoted equity securities - - - 7 - 7 7 Unquoted equity and preference securities - 3 - 20 - 23 23 Unquoted investments others - - 23 - - 23 23 Trade receivables 3,645 - - - - 3,645 3,645 Unbilled revenues (Refer to note 2.17) (3) 1,195 - - - - 1,195 1,195 Prepayments and other assets (Refer to note 2.4) 844 - - - - 844 835 (2) Derivative financial instruments - - 20 - 3 23 23 Total 8,738 3 326 27 2,228 11,322 11,333 Liabilities: Trade payables 487 - - - - 487 487 Lease liabilities (Refer to note 2.8) 962 - - - - 962 962 Derivative financial instruments - - 3 - 4 7 7 - - 77 - - 77 77 1,932 - 3 - - 1,935 1,935 Total 3,381 - 83 - 4 3,468 3,468 (1) On account of fair value changes including interest accrued (2) Excludes interest accrued on quoted debt securities carried at amortized cost of $9 million (3) Excludes unbilled revenue for contracts where the right to consideration is dependent on completion of contractual milestones Fair value hierarchy Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). Total fair value Amortized cost Total carrying value Total fair value Other liabilities including contingent consideration (Refer to note 2.5) For trade receivables and trade payables, other assets and payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Financial liability under option arrangements (Refer to note 2.5) Particulars Financial assets / liabilities at fair value through profit or loss Financial assets / liabilities at fair value through OCI Financial liability under option arrangements (Refer to note 2.5) Other liabilities including contingent consideration (Refer to note 2.5) Particulars Financial assets/ liabilities at fair value through profit or loss Financial assets/liabilities at fair value through OCI Amortized cost Total carrying value 10
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(Dollars in millions) Level 1 Level 2 Level 3 Assets Investments (Refer to note 2.2) 409 409 - - 55 55 - - 1,447 1,239 208 - 172 - 172 - 23 - - 23 11 11 - - Investments in unquoted investments others 25 - - 25 Others 8 - 8 - Liabilities 34 - 34 - Financial liability under option arrangements (Refer to note 2.5) (1) 85 - - 85 Liability towards contingent consideration (Refer to note 2.5) (2) 12 - - 12 (Dollars in millions) Level 1 Level 2 Level 3 Assets Investments (Refer to note 2.2) 229 229 - - 54 54 - - 1,602 1,533 69 - 23 - - 23 Investments in certificates of deposit 410 - 410 - 426 - 426 - Investments in quoted equity securities 7 7 - - Investments in unquoted investments others 23 - - 23 Others 23 - 23 - Liabilities 7 - 7 - Financial liability under option arrangements (Refer to note 2.5) (1) 77 - - 77 Liability towards contingent consideration (Refer to note 2.5) (2) 3 - - 3 As at March 31, 2025 (1) Discount rate ranges from 9% to 15% During the year ended March 31, 2025, quoted debt securities of $35 million were transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price and quoted debt securities of $65 million were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs. A one percentage point change in the unobservable inputs used in fair valuation of Level 3 assets and liabilities does not have a significant impact in its value. Majority of investments of the Group are fair valued based on Level 1 or Level 2 inputs. These investments primarily include investment in liquid mutual fund units, target maturity fund units, quoted debt securities, certificates of deposit, commercial paper, quoted bonds issued by government and quasi-government organizations. The Group invests after considering counterparty risks based on multiple criteria including Tier I Capital, Capital Adequacy Ratio, Credit Rating, Profitability, NPA levels and Deposit base of banks and financial institutions. These risks are monitored regularly as per Group’s risk management program. Derivative financial instruments- loss (2) Discount rate - 6% Investments in liquid mutual fund units Investments in quoted debt securities Investments in unquoted equity and preference securities Derivative financial instruments- gain Investments in target maturity fund units Investments in commercial paper Particulars Fair value measurement at end of the reporting period using Investments in liquid mutual fund units Investments in quoted debt securities Investments in unquoted equity and preference securities Investments in certificates of deposit Derivative financial instruments- gain Derivative financial instruments - loss (1) Discount rate ranges from 9% to 15% During the three months ended June 30, 2025, quoted debt securities of $138 million were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs. The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March 31, 2025 is as follows: Investments in target maturity fund units Investments in quoted equity securities (2) Discount rate ranges from 3% to 6% The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at June 30, 2025 is as follows: Particulars As at June 30, 2025 Fair value measurement at end of the reporting period using 11
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2.4 Prepayments and other assets Prepayments and other assets consist of the following: (Dollars in millions) June 30, 2025 March 31, 2025 Current Security deposits(1) 7 8 Loans to employees(1) 28 29 Prepaid expenses(2) 357 360 Interest accrued and not due(1) 61 99 Withholding taxes and others(2)(4) 262 332 Advance payments to vendors for supply of goods(2) 32 48 Deposit with corporations(1)(3) 368 345 Deferred contract cost Cost of obtaining a contract(2) 32 40 Cost of fulfillment(2) 63 59 Other non financial assets (2) 15 11 Net investment in lease(1) 158 133 Other financial assets(1) 49 55 Total Current prepayment and other assets 1,432 1,519 Non-current Security deposits(1) 33 32 Loans to employees(1) 1 2 Prepaid expenses(2) 46 33 Deposit with corporations(1)(3) 17 10 25 35 Deferred contract cost Cost of obtaining a contract (2) 37 36 Cost of fulfillment(2) 111 103 Withholding taxes and others(2)(4) 63 63 Net investment in lease(1) 132 129 Other financial assets(1) 3 2 Total Non- current prepayment and other assets 468 445 1,900 1,964 (1) Financial assets carried at amortized cost 857 844 (2) Non financial assets (4) Withholding taxes and others primarily consist of input tax credits and VAT recoverable from tax authorities. (3) Deposit with corporation represents amounts deposited to settle certain employee-relatedobligations as and when they arise during the normal course of business. Particulars As at Defined benefit plan assets(2) Total prepayment and other assets X 12
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2.5 Other liabilities Other liabilities comprise the following: (Dollars in millions) June 30, 2025 March 31, 2025 Current Accrued compensation to employees(1) 516 576 Accrued expenses(1) 1,090 991 Accrued defined benefit liability(3) 1 1 Withholding taxes and others(3) 381 381 Liabilities of controlled trusts(1) 20 20 Liability towards contingent consideration(2) 4 1 Capital Creditors(1) 12 61 Financial liability under option arrangements(2)(4) 71 64 Other non-financial liabilities(3) 1 1 Other financial liabilities(1)(5) 53 61 Total current other liabilities 2,149 2,157 Non-current Accrued compensation to employees(1) 2 1 Accrued expenses(1) 217 221 Accrued defined benefit liability (3) 14 14 Liability towards contingent consideration(2) 8 2 Financial liability under option arrangements(2)(4) 14 13 Other non-financial liabilities(3) 8 12 Other financial liabilities(1)(5) 1 1 Total non-current other liabilities 264 264 Total other liabilities 2,413 2,421 (1) Financial liability carried at amortized cost 1,911 1,932 (2) Financial liability carried at fair value through profit or loss 97 80 (3) Non financial liabilities 2.6 Provisions and other contingencies Accounting Policy 2.6.1 Provisions a. Post sales client support Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. The Group provides its clients with a fixed-period post sales support on its fixed-price, fixed-timeframe contracts. Costs associated with such support services are accrued at the time related revenues are recorded and included in cost of sales. The Group estimates such costs based on historical experience and estimates are reviewed on a periodic basis for any material changes in assumptions and likelihood of occurrence. A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre- tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The Group recognizes a reimbursement asset when, and only when, it is virtually certain that the reimbursement will be received if the Group settles the obligation. Particulars As at (5) The Group entered into financing arrangements with a third party towards technology assets taken over by the Group from a customer as a part of transformation project which was not considered as distinct goods or services as the control related to those assets was not transferred to the Group in accordance with IFRS 15 - Revenue from contract with customers. As at June 30, 2025 and March 31, 2025, the financial liability pertaining to such arrangements amounts to $7 million and $8 million, respectively. Accrued expenses primarily relate to cost of technical sub-contractors, telecommunication charges, legal and professional charges, brand building expenses, overseas travel expenses and office maintenance and cost of third party software and hardware. (4) Represents liability related to options issued by the Group over the non-controlling interests in its subsidiaries. X 13
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b. Onerous contracts Provision for post sales client support and other provisions (Dollars in millions) June 30, 2025 March 31, 2025 Post-sales client support and others provisions 149 155 Provision pertaining to settlement (refer to note 2.6.2) 18 18 Total provisions 167 173 2.6.2 Legal Proceedings McCamish Cybersecurity incident Apart from the foregoing, the Group is subject to legal proceedings and claims which have arisen in the ordinary course of business. The Group’s management reasonably expects that such ordinary course legal actions, when ultimately concluded and determined, will not have a material and adverse effect on the Group’s results of operations or financial condition. In November 2023, certain systems of Infosys McCamish Systems LLC (“McCamish”), a subsidiary of Infosys BPM Limited (a wholly owned subsidiary of Infosys Limited), were encrypted by ransomware, resulting in the non-availability of certain applications and systems. McCamish initiated its incident response and engaged cybersecurity and other specialists to assist in its investigation of and response to the incident and remediation and restoration of impacted applications and systems. By December 31, 2023, McCamish, with external specialists’ assistance, substantially remediated and restored the affected applications and systems. Actions taken by McCamish included investigative analysis conducted by a third-party cybersecurity firm to determine, among other things, whether and the extent to which company or customer data was subject to unauthorized access or exfiltration. McCamish also engaged a third-party eDiscovery vendor in assessing the extent and nature of such data. McCamish in coordination with its third-party eDiscovery vendor has identified corporate customers and individuals whose information was subject to unauthorized access and exfiltration. McCamish processes personal data on behalf of its corporate customers. Provision for post sales client support and other provisions is included in cost of sales in the interim condensed consolidated statement of comprehensive income. As at June 30, 2025 and March 31, 2025, claims against the Group, not acknowledged as debts, (excluding demands from income tax authorities- Refer to Note 2.12) amounted to $120 million (₹1,026 crore) and $119 million (₹1,020 crore), respectively. Provisions for onerous contracts are recognized when the expected benefits to be derived by the Group from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established the Group recognizes any impairment loss on the assets associated with that contract. Particulars As at Provision for post sales client support and other provisions majorly represents costs associated with providing post sales support services which are accrued at the time of recognition of revenues and are expected to be utilized over a period of 1 year. Others From March 6, 2024 through July 25, 2024, six actions were filed in the U.S. District Court for the Northern District of Georgia against McCamish. The actions arise out of the cybersecurity incident at McCamish initially disclosed on November 3, 2023. All six actions have since been consolidated, and the consolidated class action complaint was filed on November 7, 2024, purportedly on behalf of all persons residing in the United States whose personally identifiable information was compromised in the incident, including all who were sent a notice of the incident. On December 20, 2024, the Court granted the parties’ joint motion to stay proceedings pending the parties’ efforts to resolve the lawsuit through mediation. On March 13, 2025, McCamish and the plaintiffs engaged in mediation, resulting in an in-principle agreement that sets forth the terms of a proposed settlement of the class action lawsuits against McCamish, as well as seven class action lawsuits arising out of the incident that have been filed against McCamish’s customers. On May 9, 2025, McCamish and the plaintiffs entered into a definitive settlement agreement, and the plaintiffs moved for preliminary approval of the settlement. Under the settlement terms, McCamish has agreed to pay $17.5 million into a fund to settle these matters. On July 16, 2025, the Court granted preliminary approval of the settlement. The settlement remains subject to final court approval. If approved, the settlement will resolve all allegations made in the class action lawsuits without admission of any liability. During the three months ended March 31, 2025, McCamish had recorded an accrual of $17.5 million related to the settlement and had recognized an insurance reimbursement receivable of $17 million which has been offset against the settlement expense of $17.5 million in the Statement of Comprehensive Income. McCamish may incur additional costs including from indemnities or damages/claims, which are indeterminable at this time. Amount paid to statutory authorities against the claims (excluding demands from income tax authorities- Refer to Note 2.12) amounted to $2 million (₹17 crore) and $1 million (₹8 crore) as at June 30, 2025 and March 31, 2025 respectively. Government Investigation The U.S. Department of Justice (“DOJ”) is conducting an investigation regarding how the Company classified certain H-1B visa-recipient employees working for one of its clients in immigration documents filed with certain U.S. government authorities. The Company is engaged in discussions with the DOJ regarding its ongoing investigation and has commenced its own inquiry regarding the matter. At this stage, the Company is unable to predict the outcome of this matter, including whether such outcome could have a material adverse effect on the Company’s business and results of operations. 14
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2.7 Property, plant and equipment Accounting Policy Building 22-25 years Plant and machinery(1) 5 years Computer equipment 3-5 years Furniture and fixtures 5 years Vehicles 5 years Leasehold improvements Lower of useful life of the asset or lease term (1) Includes solar plant with a useful life of 25 years Impairment The changes in the carrying value of property, plant and equipment for the three months ended June 30, 2025 are as follows: (Dollars in millions) Particulars Land Buildings Plant and machinery Computer equipment Furniture and fixtures Vehicles Total Gross carrying value as at April 1, 2025 173 1,371 632 1,088 386 6 3,656 1 1 8 24 5 - 39 Additions on Business Combination - - - 1 - - 1 Deletions* - (1) (2) (31) (1) - (35) Translation difference (1) (2) (1) - 1 - (3) Gross carrying value as at June 30, 2025 173 1,369 637 1,082 391 6 3,658 Accumulated depreciation as at April 1, 2025 - (627) (511) (820) (315) (5) (2,278) Depreciation - (13) (9) (32) (7) - (61) Accumulated depreciation on deletions* - - 1 30 1 - 32 Translation difference - 2 1 1 (1) - 3 Accumulated depreciation as at June 30, 2025 - (638) (518) (821) (322) (5) (2,304) Capital work-in progress as at April 1, 2025 119 Carrying value as at April 1, 2025 173 744 121 268 71 1 1,497 Capital work-in progress as at June 30, 2025 130 Carrying value as at June 30, 2025 173 731 119 261 69 1 1,484 The changes in the carrying value of property, plant and equipment for the three months ended June 30, 2024 are as follows: (Dollars in millions) Particulars Land Buildings Plant and machinery Computer equipment Furniture and fixtures Vehicles Total Gross carrying value as at April 1, 2024 171 1,411 637 1,032 406 6 3,663 - 2 5 22 3 - 32 Deletions* - (5) (3) (19) (7) - (34) Translation difference - - - (1) (1) - (2) Gross carrying value as at June 30, 2024 171 1,408 639 1,034 401 6 3,659 Accumulated depreciation as at April 1, 2024 - (590) (498) (765) (322) (5) (2,180) Depreciation - (13) (12) (40) (10) - (75) Accumulated depreciation on deletions* - 1 3 19 7 - 30 Translation difference - - - 1 - - 1 Accumulated depreciation as at June 30, 2024 - (602) (507) (785) (325) (5) (2,224) Capital work-in progress as at April 1, 2024 54 Carrying value as at April 1, 2024 171 821 139 267 84 1 1,537 Capital work-in progress as at June 30, 2024 69 Carrying value as at June 30, 2024 171 806 132 249 76 1 1,504 The aggregate depreciation expense is included in cost of sales in the interim condensed consolidated statement of comprehensive income. The Group had contractual commitments for capital expenditure primarily comprising of commitments for infrastructure facilities and computer equipments aggregating to $124 million and $109 million as at June 30, 2025 and March 31, 2025, respectively. *During the three months ended June 30, 2025, certain assets which were not in use having gross book value of $29 million (net book value: Nil) were retired. During the three months ended June 30, 2024, certain assets which were not in use having gross book value of $15 million (net book value: Nil) were retired. Repairs and maintenance costs are recognized in the consolidated statement of comprehensive income when incurred. Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (“the Rules”), the Company was required to transfer its CSR capital assets installed prior to January 2021. Towards this the Company had incorporated a subsidiary ‘Infosys Green Forum’ (IGF) under Section 8 of the Companies Act, 2013. During the year ended March 31, 2022, the Company had completed the transfer of assets upon obtaining the required approvals from regulatory authorities, as applicable. During fiscal 2024, the application filed by IGF for regularization of the provisional registration was rejected and registration cancelled vide order dated March 26, 2024 by Income Tax Commissioner (Exemption). IGF has filed an appeal before Income Tax Tribunal against the order. Additions Additions Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by Management. The charge in respect of periodic depreciation is derived at after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The Group depreciates property, plant and equipment over their estimated useful lives using the straight-line method. The estimated useful lives of assets are as follows: Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end. The useful lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date and the cost of assets not ready to use before such date are disclosed under ‘Capital work-in-progress’. Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Group and the cost of the item can be measured reliably. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset. Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. If such assets are considered to be impaired, the impairment to be recognized in net profit in the interim condensed consolidated statement of comprehensive income is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in net profit in the statement of comprehensive income if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated depreciation) had no impairment loss been recognized for the asset in prior years. X 15
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2.8 Leases Accounting Policy The Group as a lessee The Group as a lessor ` (Dollars in millions) Particulars Land Buildings Vehicles Computers Balance as at April 1, 2025 70 392 3 273 738 Additions* - 20 - 43 63 Deletions - (2) - (23) (25) Depreciation - (22) - (32) (54) Translation difference - 4 - 13 17 Balance as at June 30, 2025 70 392 3 274 739 * Net of adjustments on account of modifications (Dollars in millions) Particulars Land Buildings Vehicles Computers Balance as at April 1, 2024 72 396 2 316 786 Additions* - 33 - 34 67 Deletions - - - (18) (18) Depreciation - (22) - (30) (52) Translation difference - (1) - (1) (2) Balance as at June 30, 2024 72 406 2 301 781 * Net of adjustments on account of modifications The following is the break-up of current and non-current lease liabilities as of June 30, 2025 and March 31, 2025 (Dollars in millions) Particulars June 30, 2025 March 31, 2025 Current lease liabilities 296 287 Non-current lease liabilities 693 675 Total 989 962 As at Following are the changes in the carrying value of right-of-use assets for the three months ended June 30, 2024 Category of ROU asset Total The aggregate depreciation expense on ROU assets is included in cost of sales in the interim condensed consolidated statement of comprehensive income. Category of ROU asset Total The Group’s lease asset classes primarily consist of leases for land, buildings and computers. The group assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the group assesses whether: (1) the contract involves the use of an identified asset (2) the group has substantially all of the economic benefits from use of the asset through the period of the lease and (3) the group has the right to direct the use of the asset. At the date of commencement of the lease, the Group recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. As a lessee, the Group determines the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Group makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Group considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Group’s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised. The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right-of-use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right-of-use asset if the Group changes its assessment if whether it will exercise an extension or a termination option. Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows. Leases for which the Group is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease. For operating leases, rental income is recognized on a straight-line basis over the term of the relevant lease. Following are the changes in the carrying value of right-of-use assets for the three months ended June 30, 2025 X 16
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2.9 Goodwill and Intangible assets 2.9.1 Goodwill Accounting Policy Impairment Following is a summary of changes in the carrying amount of goodwill: (Dollars in millions) June 30, 2025 March 31, 2025 Carrying value at the beginning 1,182 875 Goodwill on acquisitions (Refer to note 2.10) 52 309 Translation differences 62 (2) 1,296 1,182 2.9.2 Intangible assets Accounting Policy Impairment For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the CGU or groups of CGUs, which benefit from the synergies of the acquisition. Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry and known technological advances), and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and useful lives are reviewed periodically including at each financial year end. Research costs are expensed as incurred. Software product development costs are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Group has an intention and ability to complete and use or sell the software and the costs can be measured reliably. The costs which can be capitalized include the cost of material, direct labour, overhead costs that are directly attributable to prepare the asset for its intended use. Intangible assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs. If such assets are considered to be impaired, the impairment to be recognized in the net profit in the statement of comprehensive income is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the net profit in the statement of comprehensive income if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization) had no impairment loss been recognized for the asset in prior years. Carrying value at the end Goodwill represents purchase consideration in excess of the Group's interest in the net fair value of identifiable assets, liabilities and contingent liabilities of the acquired entity. When the net fair value of the identifiable assets, liabilities and contingent liabilities acquired exceeds the purchase consideration, the fair value of net assets acquired is reassessed and the bargain purchase gain is recognized immediately in the net profit in the Statement of Comprehensive Income. Goodwill is measured at cost less accumulated impairment losses. Goodwill is tested for impairment on an annual basis and whenever there is an indication that the recoverable amount of a cash generating unit (CGU) is less than its carrying amount. For the impairment test, goodwill is allocated to the CGU or groups of CGU’s which benefit from the synergies of the acquisition and which represents the lowest level at which goodwill is monitored for internal management purposes. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. Impairment occurs when the carrying amount of a CGU including the goodwill, exceeds the estimated recoverable amount of the CGU. The recoverable amount of a CGU is the higher of its fair value less cost to sell and its value-in-use. Value-in-use is the present value of future cash flows expected to be derived from the CGU. Key assumptions in the cash flow projections are prepared based on current economic conditions and includes estimated long term growth rates, weighted average cost of capital and estimated operating margins. Particulars As at 17
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2.10 Business combinations Accounting policy Acquisition (Dollars in million) Component Acquiree's carrying amount Fair value adjustments Purchase price allocated Net Assets (1) 14 - 14 Intangible assets: Customer related# - 26 26 Vendor relationship# - 7 7 Brand# - 2 2 Deferred tax liabilities on intangible assets - (5) (5) Total 14 30 44 Goodwill 52 Total purchase price 96 Goodwill amounting to $9 million is expected to be deductible for tax purposes. The total purchase consideration of $96 million includes upfront cash consideration of $88 million and contingent consideration with an estimated fair value of $8 million as on the date of acquisition. During the three months ended June 30, 2025 the Group, completed two business combinations by acquiring 100% partnership interests/voting interests in: 1) MRE Consulting Ltd., a leading Energy and business consulting services company, headquartered in Texas, U.S. on April 30, 2025, which is expected to bring newer capabilities for the Group in trading and risk management, especially in the energy sector. 2) The Missing Link Security Pty. Ltd., The Missing Link Security Limited and The Missing Link Automation Pty. Ltd. (collectively known as "The Missing Link"), a leading Cybersecurity service provider headquartered in Australia on April 30, 2025, which is expected to further strengthen the Group's capabilities in the cybersecurity sector and bolster its presence in the fast growing Australian Market. Fair value of trade receivables acquired is $23 million as of acquisition date and as of June 30, 2025, the amounts are substantially collected. Transaction costs that the Group incurs in connection with a business combination such as finder’s fees, legal fees, due diligence fees, and other professional and consulting fees are expensed as incurred. The transaction costs of $4 million related to the acquisition have been included under administrative expenses in the Consolidated Statement of Comprehensive Income for the quarter ended June 30, 2025. The provisional purchase price is allocated to assets acquired and liabilities assumed based upon determination of fair values at the date of acquisition as follows: (1) Includes cash and cash equivalents acquired of $12 million. # The estimated useful life is around 1 year to 7 years The excess of the purchase consideration paid over the fair value of assets acquired has been attributed to goodwill. The primary items that generated this goodwill are the value of the acquired assembled workforce and estimated synergies, neither of which qualify as an intangible asset. At the acquisition date, the key inputs used in determination of the fair value of contingent consideration are the probabilities assigned towards achievement of financial targets and discount rates ranging from 2% - 3%. The undiscounted value of contingent consideration as of June 30, 2025 was approximately $9 million. Additionally, these acquisitions have retention bonus and management incentives payable to the employees of the acquiree over 2-3 years, subject to their continuous employment with the Group and achievement of financial targets for the respective years. Retention bonus and management incentives are recognized in employee benefit expenses in the Statement of Comprehensive Income over the period of service. Business combinations have been accounted for using the acquisition method under the provisions of IFRS 3 (Revised), Business Combinations. The purchase price in an acquisition is measured at the fair value of the assets transferred, equity instruments issued and liabilities incurred or assumed at the date of acquisition, which is the date on which control is transferred to the Group. The purchase price also includes the fair value of any contingent consideration. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value on the date of acquisition. Contingent consideration is remeasured at fair value at each reporting date and changes in the fair value of the contingent consideration are recognized in the interim condensed Consolidated Statement of Comprehensive Income. The interest of non-controlling shareholders is initially measured either at fair value or at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets. The choice of measurement basis is made on an acquisition-by-acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity of subsidiaries. Business combinations between entities under common control is outside the scope of IFRS 3 (Revised), Business Combinations and is accounted for at carrying value of assets acquired and liabilities assumed. The payments related to options issued by the Group over the non-controlling interests in its subsidiaries are accounted as financial liabilities and initially recognized at the estimated present value of gross obligations. Such options are subsequently measured at fair value in order to reflect the amount payable under the option at the date at which it becomes exercisable. In the event that the option expires unexercised, the liability is derecognized. X 18
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Accounting Policy The following is the summary of grants during three months ended June 30, 2025 and June 30, 2024: 2025 2024 2015 Plan: RSU Equity settled RSUs Key Management Personnel (KMP) 277,077 295,168 Employees other than KMP 5,000 96,490 282,077 391,658 2015 Plan: Employee Stock Options (ESOPs) Equity settled RSUs Key Management Personnel (KMP) 237,370 - Employees other than KMP 5,412,790 - 5,650,160 - Cash settled RSUs Key Management Personnel (KMP) - - Employees other than KMP 108,180 - 108,180 - Total Grants under 2015 Plan 6,040,417 391,658 2019 Plan: RSU Equity settled RSUs Key Management Personnel (KMP) 66,366 70,699 Employees other than KMP - 6,848 66,366 77,547 Total Grants under 2019 Plan 66,366 77,547 The Group recognizes compensation expense relating to share-based payments in net profit based on estimated fair-values of the awards on the grant date. The estimated fair value of awards is recognized as an expense in net profit in the interim condensed consolidated statement of comprehensive income on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was in-substance, multiple awards with a corresponding increase to share premium. Infosys Expanded Stock Ownership Program 2019 (the 2019 Plan) 2.11 Employees' Stock Option Plans (ESOP) On June 22, 2019 pursuant to approval by the shareholders in the Annual General Meeting, the Board has been authorized to introduce, offer, issue and provide share- based incentives to eligible employees of the Company and its subsidiaries under the 2019 Plan. The maximum number of shares under the 2019 plan shall not exceed 50,000,000 equity shares. To implement the 2019 Plan, up to 45,000,000 equity shares may be issued by way of secondary acquisition of shares by Infosys Expanded Stock Ownership Trust. The Restricted Stock Units (RSUs) granted under the 2019 plan shall vest based on the achievement of defined annual performance parameters as determined by the administrator (Nomination and Remuneration Committee). The performance parameters will be based on a combination of relative Total Shareholder Return (TSR) against selected industry peers and certain broader market domestic and global indices and operating performance metrics of the company as decided by administrator. Each of the above performance parameters will be distinct for the purposes of calculation of quantity of shares to vest based on performance. These instruments will generally vest between a minimum of 1 to maximum of 3 years from the grant date. 2015 Stock Incentive Compensation Plan (the 2015 Plan): On March 31, 2016, pursuant to the approval by the shareholders through postal ballot, the Board was authorized to introduce, offer, issue and allot share-based incentives to eligible employees of the Company and its subsidiaries under the 2015 Plan. The maximum number of shares under the 2015 plan shall not exceed 24,038,883 equity shares (this includes 11,223,576 equity shares which are held by the trust towards the 2011 Plan as at March 31, 2016). These instruments will generally vest over a period of 4 years The plan numbers mentioned above are further adjusted with the September 2018 bonus issue. The equity settled and cash settled RSUs and stock options would vest generally over a period of 4 years and shall be exercisable within the period as approved by the Nomination and Remuneration Committee (NARC). The exercise price of the RSUs will be equal to the par value of the shares and the exercise price of the stock options would be the market price as on the date of grant. Controlled trust holds 9,098,409 and 9,655,927 shares as at June 30, 2025 and March 31, 2025, respectively under the 2015 plan. Out of these shares, 2,00,000 equity shares each have been earmarked for welfare activities of the employees as at June 30, 2025 and March 31, 2025. Particulars Three months ended June 30, X 19
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Notes on grants to KMP: CEO & MD Under the 2015 plan: The break-up of employee stock compensation expense is as follows: (Dollars in millions) 2025 2024 Granted to: KMP 2 2 Employees other than KMP 26 23 Total (1) 28 25 (1) Cash settled stock compensation expense included in the above 1 - The fair value of each equity settled award is estimated on the date of grant using the following assumptions: Particulars Fiscal 2026- Equity Shares- RSU Fiscal 2026- Equity Shares- ESOP Fiscal 2026- ADS-ESOP Fiscal 2025- Equity Shares- RSU Fiscal 2025- ADS-RSU Weighted average share price (₹) / ($ ADS) 1,507 1,554 17.93 1,414 16.87 Exercise price (₹)/ ($ ADS) 5 1,554 17.93 5 0.07 Expected volatility (%) 24-25 25-28 26-30 23-26 23-28 Expected life of the option (years) 1-4 3-7 3-7 1-4 1-4 Expected dividends (%) 2-3 2-3 2-3 2-3 2-3 Risk-free interest rate (%) 6 6 4 7 4-5 Weighted average fair value as on grant date (₹) / ($ ADS) 1,355 390 4.09 1,298 15.45 Though the annual time based grants and annual performance equity TSR grant for the remaining employment term ending on March 31, 2027 have not been granted as of June 30, 2025, since the service commencement date precedes the grant date, the company has recorded employment stock compensation expense in accordance with IFRS 2, Share based payments. The grant date for this purpose in accordance with IFRS 2, Share based payments is July 1, 2022. The Board, on April 17, 2025, based on the recommendations of the Nomination and Remuneration Committee, approved performance-based grant of RSUs amounting to ₹10 crore for fiscal 2026 under the 2019 Plan. These RSUs will vest based on achievement of certain performance targets. Accordingly, 66,366 performance based RSU’s were granted effective May 2, 2025. The Board, on April 17, 2025, based on the recommendations of the Nomination and Remuneration Committee approved the following grants for fiscal 2026. In accordance with such approval the following grants were made effective May 2, 2025. - 230,621 performance-based RSUs (Annual performance equity grant) of fair value of ₹34.75 crore. These RSUs will vest in line with the employment agreement based on achievement of certain performance targets. - 13,273 performance-based grant of RSUs (Annual performance equity ESG grant) of fair value of ₹2 crore. These RSUs will vest in line with the employment agreement based on achievement of certain environment, social and governance milestones as determined by the Board. - 33,183 performance-based grant of RSUs (Annual performance Equity TSR grant) of fair value of ₹5 crore . These RSUs will vest in line with the employment agreement based on Company’s performance on cumulative relative TSR over the years and as determined by the Board. Under the 2019 plan: The fair value of the awards are estimated using the Black-Scholes Model for time and non-market performance based options and Monte Carlo simulation model is used for TSR based options. The inputs to the model include the share price at date of grant, exercise price, expected volatility, expected dividends, expected term and the risk free rate of interest. Expected volatility during the expected term of the options is based on historical volatility of the observed market prices of the Company's publicly traded equity shares during a period equivalent to the expected term of the options. Expected volatility of the comparative company have been modelled based on historical movements in the market prices of their publicly traded equity shares during a period equivalent to the expected term of the options. Correlation coefficient is calculated between each peer entity and the indices as a whole or between each entity in the peer group. For options granted in The expected life of the RSU/ESOP is estimated based on the vesting term and contractual term of the RSU/ESOP, as well as expected exercise behavior of the employee who receives the RSU/ESOP. Particulars Three months ended June 30, 20
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2.12 Income Taxes Accounting policy Income tax expense in the interim condensed consolidated statement of comprehensive income comprises: (Dollars in million) 2025 2024 Current taxes Domestic taxes 271 277 Foreign taxes 86 83 357 360 Deferred taxes Domestic taxes (17) (28) Foreign taxes (11) (14) (28) (42) Income tax expense 329 318 2.13 Earnings per equity share Accounting Policy Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the consolidated statement of comprehensive income except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity or other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. Deferred income taxes are not provided on the undistributed earnings of subsidiaries and branches where it is expected that the earnings of the subsidiary or branch will not be distributed in the foreseeable future. The Group offsets current tax assets and current tax liabilities; deferred tax assets and deferred tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full financial year. Tax benefits of deductions earned on exercise of employee share options in excess of compensation charged to income are credited to equity. Particulars Three months ended June 30, The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors. As at June 30, 2025, claims against the Group not acknowledged as debts from the Income tax authorities amounted to $230 million (₹1,976 crore). As at March 31, 2025, claims against the Group not acknowledged as debts from the Income tax authorities amounted to $226 million (₹1,933 crore). Amount paid to statutory authorities against the tax claims amounted to $488 million (₹4,185 crore) and $491 million (₹4,199 crore) as at June 30, 2025 and March 31, 2025 respectively. The claims against the Group primarily represent demands arising on completion of assessment proceedings under the Income Tax Act, 1961. These claims are on account of issues of disallowance of expenditure towards software being held as capital in nature, payments made to Associated Enterprises held as liable for withholding of taxes, among others. These matters are pending before various Income Tax Authorities and the Management including its tax advisors expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Group's financial position and results of operations. Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as at the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented. Income tax expense for the three months ended June 30, 2025 and June 30, 2024 includes provisions (net of reversals) of $14 million and provisions (net of reversals) of $7 million , respectively. These provisions and reversals pertaining to prior periods are primarily on account of adjudication of certain disputed matters, upon filing of tax return and completion of assessments, across various jurisdictions Deferred income tax for the three months ended June 30, 2025 and June 30, 2024 substantially relates to origination and reversal of temporary differences The Company’s Advanced Pricing Arrangement (APA) with the Internal Revenue Service (IRS) for US branch income tax expired in March 2021. The Company has applied for renewal of APA and currently the US taxable income is based on the Company’s best estimate determined based on the expected value method. X 21
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2.14 Related party transactions . . . . . . . Transactions with key management personnel The table below describes the compensation to key management personnel which comprise directors and executive officers: (Dollars in millions) 2025 2024 Salaries and other short term employee benefits to whole-time directors and executive officers(1)(2) 3 3 Commission and other benefits to non-executive/ independent directors 1 1 Total 4 4 (1) Total employee stock compensation expense for the three months ended June 30, 2025 and June 30, 2024 includes a charge of $2 million and $2 million respectively, towards key management personnel. (Refer note 2.11). (2) Does not include post-employment benefits and other long-term benefits, based on actuarial valuation as these are done for the Company as a whole. Three months ended June 30,Particulars On May 13, 2025, Infosys Singapore Pte Ltd diluted 2% stake of HPUS Co., Ltd to Mitsubishi Heavy Industries, Ltd. On April 30, 2025, Infosys Australia Technology Service Pty Ltd, a wholly owned subsidiary of Infosys Singapore Pte. Limited, acquired 100% of voting interests in The Missing Link Automation Pty Ltd, The Missing Link Network Integration Pty Ltd and The Missing Link Security Pty Ltd along with its subsidiary The Missing Link Security Ltd Infosys Australia Technology Service Pty Ltd, a wholly-owned subsidiary of Infosys Singapore Pte. Limited was incorporated on April 23, 2025. On April 30, 2025, Infosys Nova Holdings LLC , a wholly-owned subsidiary of Infosys Limited, acquired 98.21% of partnership interests in MRE Consulting Ltd along with its subsidiary MRE Technology Services, LLC. The remaining 1.79% was acquired by Infosys Energy Consulting Services LLC , a Wholly-owned subsidiary of Infosys Nova Holdings LLC. Refer Note 2.20 "Related party transactions" in the Company’s 2025 Annual Report on Form 20-F for the full names and other details of the Company's subsidiaries and controlled trusts. Changes in Subsidiaries During the three months ended June 30, 2025, the following are the changes in the subsidiaries: Infosys Energy Consulting Services LLC , a wholly-owned subsidiary of Infosys Nova Holdings LLC was incorporated on April 16, 2025. Infosys Saudi Arabia LLC, a wholly-owned subsidiary of Infosys Limited was incorporated on April 21, 2025. in-tech Automotive Engineering de. R L de. C V, a wholly-owned subsidiary of in-tech GmbH has been liquidated effective May 07, 2025. X 22
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2.15 Segment reporting 2.15.1 Business segments (Dollars in millions) Particulars Financial Services(1) Manufacturin g Energy, Utilities, Resources and Services Retail(2) Communication(3) Hi-Tech Life Sciences(4) All other segments(5) Total Revenue 1,379 795 671 660 596 385 321 134 4,941 1,297 693 626 651 569 377 343 158 4,714 Identifiable operating expenses 779 500 383 341 390 229 200 77 2,899 730 454 325 324 373 214 210 90 2,720 Allocated expenses 253 130 120 122 103 66 56 31 881 254 118 114 117 100 66 60 33 862 Segment Profit 347 165 168 197 103 90 65 26 1,161 313 121 187 210 96 97 73 35 1,132 Unallocable expenses 133 138 Operating profit 1,028 994 Other income, net 122 101 Finance Cost 12 13 Profit before income taxes 1,138 1,082 Income tax expense 329 318 Net profit 809 764 Depreciation and amortization 133 138 Non-cash expenses other than depreciation and amortization - - (1) Financial Services include enterprises in Financial Services and Insurance (2) Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics (3) Communication includes enterprises in Communication, Telecom OEM and Media (4) Life Sciences includes enterprises in Life sciences and Health care (5) Others include operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services 2.15.2 Significant clients No client individually accounted for more than 10% of the revenues for the three months ended June 30, 2025 and June 30, 2024 respectively. For the three months ended June 30, 2025 and June 30, 2024 IFRS 8 Operating Segments establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Group's operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance. The Chief Operating Decision Maker (CODM) evaluates the Group's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the accounting policies. Business segments of the Group are primarily enterprises in Financial Services and Insurance, enterprises in Manufacturing, enterprises in Retail, Consumer Packaged Goods and Logistics, enterprises in the Energy, Utilities, Resources and Services, enterprises in Communication, Telecom OEM and Media, enterprises in Hi-Tech, enterprises in Life Sciences and Healthcare and all other segments. The Financial services reportable segments has been aggregated to include the Financial Services operating segment and Finacle operating segment because of the similarity of the economic characteristics. All other segments represent the operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services. Revenue and identifiable operating expenses in relation to segments are categorized based on items that are individually identifiable to that segment. Revenue for 'all other segments' represents revenue generated by Infosys Public Services and revenue generated from customers located in India, Japan and China and other enterprises in public service. Allocated expenses of segments include expenses incurred for rendering services from the Group's offshore software development centers and on-site expenses, which are categorized in relation to the associated efforts of the segment. Certain expenses such as depreciation and amortization, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying assets are used interchangeably. The Management believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and adjusted against the total income of the Group. Assets and liabilities used in the Group's business are not identified to any of the reportable segments, as these are used interchangeably between segments. The Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous. Business segment revenue information is collated based on individual customers invoiced or in relation to which the revenue is otherwise recognized. Disclosure of revenue by geographic locations is given in note 2.16 Revenue from operations X 23
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Accounting Policy: Arrangements to deliver software products generally have three elements: license, implementation and Annual Technical Services (ATS).When implementation services are provided in conjunction with the licensing arrangement and the license and implementation have been identified as two distinct separate performance obligations, the transaction price for such contracts are allocated to each performance obligation of the contract based on their relative standalone selling prices. In the absence of standalone selling price for implementation, the Group uses the expected cost plus margin approach in estimating the standalone selling price. Where the license is required to be substantially customized as part of the implementation service the entire arrangement fee for license and implementation is considered to be a single performance obligation and the revenue is recognized using the percentage-of-completion method as the implementation is performed. Revenue from client training, support and other services arising due to the sale of software products is recognized as the performance obligations are satisfied. ATS revenue is recognized ratably on a straight-line basis over the period in which the services are rendered. Revenue on time-and-material and unit of work based contracts, are recognized as the related services are performed. Fixed price maintenance revenue is recognized ratably either on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period or ratably using a percentage of completion method when the pattern of benefits from the services rendered to the customer and Group’s costs to fulfil the contract is not even through the period of contract because the services are generally discrete in nature and not repetitive. Revenue from other fixed-price, fixed-timeframe contracts, where the performance obligations are satisfied over time is recognized using the percentage-of-completion method. Efforts or costs expended are used to determine progress towards completion as there is a direct relationship between input and productivity. Progress towards completion is measured as the ratio of costs or efforts incurred to date (representing work performed) to the estimated total costs or efforts. Estimates of transaction price and total costs or efforts are continuously monitored over the term of the contracts and are recognized in net profit in the period when these estimates change or when the estimates are revised. Revenues and the estimated total costs or efforts are subject to revision as the contract progresses. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract. The billing schedules agreed with customers include periodic performance based billing and / or milestone based progress billings. Revenues in excess of billing are classified as unbilled revenue while billing in excess of revenues are classified as contract liabilities (which we refer to as unearned revenues). In arrangements for software development and related services and maintenance services, by applying the revenue recognition criteria for each distinct performance obligation, the arrangements with customers generally meet the criteria for considering software development and related services as distinct performance obligations. For allocating the transaction price, the Group measures the revenue in respect of each performance obligation of a contract at its relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone selling price. In cases where the Group is unable to determine the standalone selling price, the Group uses the expected cost plus margin approach in estimating the standalone selling price. For software development and related services, the performance obligations are satisfied as and when the services are rendered since the customer generally obtains control of the work as it progresses. Certain cloud and infrastructure services contracts include multiple elements which may be subject to other specific accounting guidance, such as leasing guidance. These contracts are accounted in accordance with such specific accounting guidance. In such arrangements where the Group is able to determine that hardware and services are distinct performance obligations, it allocates the consideration to these performance obligations on a relative standalone selling price basis. In the absence of standalone selling price, the Group uses the expected cost-plus margin approach in estimating the standalone selling price. When such arrangements are considered as a single performance obligation, revenue is recognized over the period and measure of progress is determined based on promise in the contract. Revenue from licenses where the customer obtains a “right to use” the licenses is recognized at the time the license is made available to the customer. Revenue from licenses where the customer obtains a “right to access” is recognized over the access period. A contract modification is a change in the scope or price or both of a contract that is approved by the parties to the contract. A contract modification that results in the addition of distinct performance obligations are accounted for either as a separate contract if the additional services are priced at the standalone selling price or as a termination of the existing contract and creation of a new contract if they are not priced at the standalone selling price. If the modification does not result in a distinct performance obligation, it is accounted for as part of the existing contract on a cumulative catch-up basis. 2.16 Revenue from Operations The Group derives revenues primarily from IT services comprising software development and related services, cloud and infrastructure services, maintenance, consulting and package implementation, licensing of software products and platforms across the Group’s core and digital offerings (together called as “software related services”) and business process management services. Contracts with customers are either on a time-and-material, unit of work, fixed-price or on a fixed-timeframe basis. Revenues from customer contracts are considered for recognition and measurement when the contract has been approved in writing, by the parties, to the contract, the parties to contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable. Revenue is recognized upon transfer of control of promised products or services (“performance obligations”) to customers in an amount that reflects the consideration the Group has received or expects to receive in exchange for these products or services (“transaction price”). When there is uncertainty as to collectability, revenue recognition is postponed until such uncertainty is resolved. The Group assesses the services promised in a contract and identifies distinct performance obligations in the contract. The Group allocates the transaction price to each distinct performance obligation based on the relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone selling price. In the absence of such evidence, the primary method used to estimate standalone selling price is the expected cost plus a margin, under which the Group estimates the cost of satisfying the performance obligation and then adds an appropriate margin based on similar services. The Group’s contracts may include variable consideration including rebates, volume discounts and penalties. The Group includes variable consideration as part of transaction price when there is a basis to reasonably estimate the amount of the variable consideration and when it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Contracts with customers includes subcontractor services or third-party vendor equipment or software in certain integrated services arrangements. In these types of arrangements, revenue from sales of third-party vendor products or services is recorded net of costs when the Group is acting as an agent between the customer and the vendor, and gross when the Group is the principal for the transaction. In doing so, the Group first evaluates whether it obtains control of the specified goods or services before they are transferred to the customer. The Group considers whether it is primarily responsible for fulfilling the promise to provide the specified goods or services, inventory risk, pricing discretion and other factors to determine whether it controls the specified goods or services and therefore, is acting as a principal or an agent. X 24
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(Dollars in millions) Particulars 2025 2024 Revenue from software services 4,714 4,496 Revenue from products and platforms 227 218 Total revenue from operations 4,941 4,714 For the three months ended June 30, 2025 and June 30, 2024 (Dollars in millions) Particulars 2025 2024 Revenues by Geography* North America 2,789 2,775 Europe 1,559 1,341 India 142 147 Rest of the world 451 451 Total 4,941 4,714 Trade Receivables and Contract Balances (Dollars in millions) Particulars June 30, 2025 March 31, 2025 Unbilled financial asset (1) 1,236 1,195 Unbilled non financial asset (2) 614 569 Total 1,850 1,764 Three months ended June 30, Revenues for the three months ended June 30, 2025 and June 30, 2024 is as follows Three months ended June 30, The Group also derives revenues from the sale of products and platforms like Finacle – core banking solution, Edge Suite of products, Panaya platform, Stater digital platform and Infosys McCamish – insurance platform. As at The percentage of revenue from fixed-price contracts for each of the three months ended June 30, 2025 and June 30, 2024 is 54%. The incremental costs of obtaining a contract (i.e., costs that would not have been incurred if the contract had not been obtained) are recognized as an asset if the Group expects to recover them. Certain eligible, nonrecurring costs (e.g. set-up or transition or transformation costs) that do not represent a separate performance obligation are recognized as an asset when such costs (a) relate directly to the contract; (b) generate or enhance resources of the Group that will be used in satisfying the performance obligation in the future; and (c) are expected to be recovered. Capitalized contract costs relating to upfront payments to customers are amortized to revenue and other capitalized costs are amortized to cost of sales over the respective contract life on a systematic basis consistent with the transfer of goods or services to customer to which the asset relates. Capitalized costs are monitored regularly for impairment. Impairment losses are recorded when present value of projected remaining operating cash flows is not sufficient to recover the carrying amount of the capitalized costs. The Group presents revenues net of indirect taxes in its interim Consolidated Statement of Comprehensive Income. Disaggregated revenue information Revenue disaggregation by business segments has been included in segment information (Refer note 2.15). The table below presents disaggregated revenues from contracts with customers by geography and contract type. The Group believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors. * Geographical revenue is based on the domicile of customer Products & platforms (1) Right to consideration is unconditional and is due only after a passage of time. (2) Right to consideration is dependent on completion of contractual milestones. The timing of revenue recognition, billings and cash collections results in receivables, unbilled revenue, and unearned revenue on the Group’s Consolidated Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly or quarterly) or upon achievement of contractual milestones. The Group’s receivables are rights to consideration that are unconditional. Unbilled revenues comprising revenues in excess of billings from time and material contracts and fixed price maintenance contracts are classified as financial asset when the right to consideration is unconditional and is due only after a passage of time. Invoicing to the clients for other fixed price contracts is based on milestones as defined in the contract and therefore the timing of revenue recognition is different from the timing of invoicing to the customers. Therefore, unbilled revenues for other fixed price contracts (contract asset) are classified as non-financial asset because the right to consideration is dependent on completion of contractual milestones. Invoicing in excess of earnings are classified as unearned revenue. Trade receivable and unbilled revenues are presented net of impairment in the consolidated balance sheet. 2.17 Unbilled Revenue 25
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2.18 Equity Accounting policy Ordinary Shares Treasury Shares Share premium Retained earnings Retained earnings represent the amount of accumulated earnings of the Group. Other components of equity 2.18.1 Voting 2.18.2 Liquidation 2.18.3 Share options 2.18.4 Share capital and share premium Capital Redemption Reserve Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares, share options and buyback are recognized as a deduction from equity, net of any tax effects. When any entity within the Group purchases the company's ordinary shares, the consideration paid including any directly attributable incremental cost is presented as a deduction from total equity, until they are cancelled, sold or reissued. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is transferred to/ from Share premium. Other Reserves The Special Economic Zone Re-investment reserve has been created out of the profit of the eligible SEZ unit in terms of the provisions of Sec 10AA (1)(ii) of Income Tax Act, 1961. The reserve should be utilized by the Company for acquiring new plant and machinery for the purpose of its business in terms of the provisions of the Sec 10AA (2) of the Income Tax Act, 1961. The amount received in excess of the par value has been classified as share premium. Additionally, share-based compensation recognized in net profit in the interim condensed consolidated statement of comprehensive income is credited to share premium. Amounts have been utilized for bonus issue and share buyback from share premium account. The Company has only one class of shares referred to as equity shares having a par value of ₹5/-. Each holder of equity shares is entitled to one vote per share. The equity shares represented by American Depositary Shares (ADS) carry similar rights to voting and dividends as the other equity shares. Each ADS represents one underlying equity share. In accordance with section 69 of the Indian Companies Act, 2013, the Company creates capital redemption reserve equal to the nominal value of the shares bought back as an appropriation from general reserve / retained earnings. Other components of equity include currency translation, re-measurement of net defined benefit liability/asset, fair value changes of equity instruments fair valued through other comprehensive income, changes on fair valuation of investments, net of taxes. Cash flow hedge reserve When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedging reserve. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the net profit in the interim condensed consolidated Statement of Comprehensive Income upon the occurrence of the related forecasted transaction. There are no voting, dividend or liquidation rights to the holders of options issued under the company's share option plans. In the event of liquidation of the company, the holders of shares shall be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently, other than the amounts held by irrevocable controlled trusts. The amount distributed will be in proportion to the number of equity shares held by the shareholders. For irrevocable controlled trusts, the corpus would be settled in favor of the beneficiaries. The Company has only one class of shares referred to as equity shares having a par value of ₹5/- each. 9,098,409 shares and 9,655,927 shares were held by controlled trust, as at June 30, 2025 and March 31, 2025, respectively X 26
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Dividend in ₹ in US Dollars in ₹ in US Dollars Final dividend for fiscal 2025 22.00 0.26 - - Special dividend for fiscal 2024 - - 8.00 0.10 Final dividend for fiscal 2024 - - 20.00 0.24 The Board of Directors in their meeting held on April 17, 2025 recommended a final dividend of ₹22/- per equity share (approximately $0.26 per equity share) for the financial year ended March 31, 2025. The same was approved by the shareholders at the Annual General Meeting (AGM) of the Company held on June 25, 2025 which resulted in a net cash outflow of $1,062 million, excluding dividend paid on treasury shares. The final dividend was paid on June 30, 2025. The final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company's Board of Directors. Income tax consequences of dividends on financial instruments classified as equity will be recognized according to where the entity originally recognized those past transactions or events that generated distributable profits. 2.18.5 Capital allocation policy Effective fiscal 2025, the Company expects to continue its policy of returning approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback/ special dividends subject to applicable laws and requisite approvals, if any. Under this policy, the Company expects to progressively increase its annual dividend per share (excluding special dividend if any). Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under IFRS. Dividend and buyback include applicable taxes. The Company’s objective when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares or buy back issued shares. As of June 30, 2025, the Company has only one class of equity shares and has no debt. Consequent to the above capital structure there are no externally imposed capital requirements. The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute dividend after deducting applicable taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates. The amount of per share dividend recognized as distribution to equity shareholders is as follows: Particulars Three months ended June 30, 2025 Three months ended June 30, 2024 27
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2.19 Break-up of expenses and other income, net Accounting policy 2.19.1 Gratuity and Pensions 2.19.2 Superannuation 2.19.3 Provident fund 2.19.4 Compensated absences The Group provides for gratuity, a defined benefit retirement plan ('the Gratuity Plan') covering eligible employees majorly of Infosys and its Indian subsidiaries. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment with the Group. The Company contributes Gratuity liabilities to the Infosys Limited Employees' Gratuity Fund Trust (the Trust). In case of Infosys BPM and EdgeVerve, contributions are made to the Infosys BPM Employees' Gratuity Fund Trust and EdgeVerve Systems Limited Employees' Gratuity Fund Trust, respectively. Trustees administer contributions made to the Trusts and contributions are invested in a scheme with the Life Insurance Corporation of India as permitted by Indian law. The Group operates defined benefit pension plan in certain overseas jurisdictions, in accordance with the local laws. These plans are managed by third party fund managers. The plans provide for periodic payouts after retirement or for a lumpsum payment as set out in rules of each fund and includes death and disability benefits. The defined benefit plans require contributions which are based on a percentage of salary that varies depending on the age of the respective employees. Liabilities with regard to these defined benefit plans are determined by actuarial valuation, performed by an external actuary, at each Balance Sheet date using the projected unit credit method. These defined benefit plans expose the Group to actuarial risks, such as longevity risk, interest rate risk and market risk. The Group recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability/(asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligation is recognized in other comprehensive income. The effect of any plan amendments is recognized in net profits in the interim condensed consolidated statement of comprehensive income. Eligible employees of Infosys receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employee and the company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee's salary. The company contributes a portion of the contributions to the Infosys Limited Employees' Provident Fund Trust. The trust invests in specific designated instruments as permitted by Indian law. The remaining portion is contributed to the government administered pension fund. The rate at which the annual interest is payable to the beneficiaries by the trust is being administered by the Government of India. The company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate. Certain employees of Infosys, Infosys BPM and EdgeVerve are participants in a defined contribution plan. The Group has no further obligations to the Plan beyond its monthly contributions which are periodically contributed to a trust fund, the corpus of which is invested with the Life Insurance Corporation of India. The Group has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an external actuary at each balance sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the balance sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur. 2.19.5 Other income, net Other income is comprised primarily of interest income, dividend income, gain/loss on investment and exchange gain/loss on forward and options contracts and on translation of foreign currency assets and liabilities. Interest income is recognized using the effective interest method. Dividend income is recognized when the right to receive payment is established. 2.19.6 Foreign Currency Functional currency and presentation currency The functional currency of Infosys, its Indian subsidiaries and controlled trusts is the Indian rupee. The functional currencies for foreign subsidiaries are their respective local currencies. These financial statements are presented in U.S. dollars (rounded off to the nearest million) to facilitate the investors’ ability to evaluate Infosys’ performance and financial position in comparison to similar companies domiciled in other geographic locations. Transactions and translations Foreign-currency denominated monetary assets and liabilities are translated into the relevant functional currency at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are recognized in the interim condensed Consolidated Statement of Comprehensive Income and reported within exchange gains/ (losses) on translation of assets and liabilities, net, except when deferred in Other Comprehensive Income as qualifying cash flow hedges. Non-monetary assets and non- monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. The related revenue and expense are recognized using the same exchange rate. Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled. Revenue, expense and cash-flow items denominated in foreign currencies are translated into the relevant functional currencies using the exchange rate in effect on the date of the transaction. In respect of Indian subsidiaries, eligible employees receive benefits from a provident fund, which is a defined contribution plan. Both the eligible employee and the respective companies make monthly contributions to this provident fund plan equal to a specified percentage of the covered employee's salary. Amounts collected under the provident fund plan are deposited in a government administered provident fund. The companies have no further obligation to the plan beyond its monthly contributions. XX 28
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2.19.8 Operating Profits The translation of financial statements of the foreign subsidiaries to the presentation currency is performed for assets and liabilities using the exchange rate in effect at the Balance Sheet date and for revenue, expense and cash-flow items using the average exchange rate for the respective periods. The gains or losses resulting from such translation are included in currency translation reserves under other components of equity. When a subsidiary is disposed off, in full, the relevant amount is transferred to net profit in the Statement of Comprehensive Income. However, when a change in the parent's ownership does not result in loss of control of a subsidiary, such changes are recorded through equity. Other Comprehensive Income, net of taxes includes translation differences on non-monetary financial assets measured at fair value at the reporting date, such as equities classified as financial instruments and measured at fair value through other comprehensive income (FVOCI). Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the exchange rate in effect at the Balance Sheet date. 2.19.7 Government grants The Group recognizes government grants only when there is reasonable assurance that the conditions attached to them shall be complied with, and the grants will be received. Government grants related to assets are treated as deferred income and are recognized in the net profit in the statement of comprehensive income on a systematic and rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in the statement of comprehensive income over the periods necessary to match them with the related costs which they are intended to compensate. Operating profit of the Group is computed considering the revenues, net of cost of sales, selling and marketing expenses and administrative expenses. 29
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The table below provides details of break-up of expenses: Cost of sales (Dollars in millions) 2025 2024 Employee benefit costs 2,390 2,257 Depreciation and amortization 133 138 Travelling costs 38 39 Cost of technical sub-contractors 409 380 Cost of software packages for own use 74 67 Third party items bought for service delivery to clients 359 344 Consultancy and professional charges 1 13 Communication costs 8 8 Repairs and maintenance 17 15 Provision for post-sales client support and other provisions (21) (13) Others 8 11 Total 3,416 3,259 Selling and marketing expenses (Dollars in millions) 2025 2024 Employee benefit costs 188 170 Travelling costs 15 12 Branding and marketing 45 42 Consultancy and professional charges 6 4 Others 4 4 Total 258 232 Administrative expenses (Dollars in millions) 2025 2024 Employee benefit costs 93 83 Consultancy and professional charges 47 36 Repairs and maintenance 31 31 Power and fuel 6 8 Communication costs 9 9 Travelling costs 7 6 Rates and taxes 10 14 Insurance charges 9 9 Commission to non-whole time directors 1 1 Impairment loss recognized/(reversed) under expected credit loss model 4 - Contribution towards Corporate Social Responsibility 14 20 Others 8 12 Total 239 229 Particulars Three months ended June 30, Particulars Three months ended June 30, Particulars Three months ended June 30, 30
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(Dollars in millions) 2025 2024 Interest income on financial assets carried at amortized cost 57 41 Interest income on financial assets carried at fair value through other comprehensive income 39 39 Gain/(loss) on investments carried at fair value through profit or loss 9 13 Gain/(loss) on investments carried at amortized cost 3 - Exchange gains / (losses) on forward and options contracts (79) 4 Exchange gains / (losses) on translation of other assets and liabilities 87 - Others 6 4 Total 122 101 for and on behalf of the Board of Directors of Infosys Limited Nandan M. Nilekani Salil Parekh Bobby Parikh Chairman Chief Executive Officer Director and Managing Director Bengaluru Jayesh Sanghrajka A.G.S. Manikantha July 23, 2025 Chief Financial Officer Company Secretary Other income for the three months June 30, 2025 and June 30, 2024 is as follows: Particulars Three months ended June 30, 31
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Index Page No. Condensed Consolidated Balance Sheet………………………………………………………………………………..1 Condensed Consolidated Statement of Comprehensive Income………………………………………………………..2 Condensed Consolidated Statement of Changes in Equity ……………………………………..……………………………………..3 Condensed Consolidated Statement of Cash Flows……………………………………………………………………….5 Overview and Notes to the Interim Condensed Consolidated Financial Statements 1. Overview 1.1 Company overview …………………………………………………….…………………………………………………….7 1.2 Basis of preparation of financial statements …………………………………………………….…………………………………………………….7 1.3 Basis of consolidation……………………………………………………………………………… 7 1.4 Use of estimates and judgments…………………………………………………………………. 7 1.5 Critical accounting estimates and judgements………………………………………………………………………7 1.6 Recent accounting pronouncements…………………………………………………………….. 8 2. Notes to the Interim Condensed Consolidated Financial Statements 2.1 Cash and cash equivalents ……………………………………………………………………….. 9 2.2 Investments…………………………………………………………………………………………. 9 2.3 Financial instruments………………………………………………………………………………. 11 2.4 Prepayments and other assets………………………………………………………………………. 15 2.5 Other liabilities……………………………………………………………………………………….. 16 2.6 Provisions and other contingencies……………………………………………………………………………………………17 2.7 Property, plant and equipment……………………………………………………………………….. 19 2.8 Leases……………………..……………………………………………………………………….. 21 2.9 Goodwill and Intangible Assets...……………………………………………………………..... 23 2.10 Business combinations ………………………………...………………………………………. 24 2.11 Employees' Stock Option Plans (ESOP)…………………………………………………………………………25 2.12 Income Taxes……………………………………………………………………………………. 27 2.13 Earnings per equity share…………………………………………………………………………………….28 2.14 Related party transactions………………………………………………………………………………………………..28 2.15 Segment reporting…………………………………………………………………………………………29 2.16 Revenue from Operations…………………………………………………………………………………..30 2.17 Unbilled Revenue……………………………………………………………………………….. 31 2.18 Equity…………………….………………………………………………………………………… 32 2.19 Break-up of expenses and other income, net………………...……………………………...... 34 Condensed Consolidated Financial Statements under International Financial Reporting Standards (IFRS) in Indian Rupee for the three months ended June 30, 2025 INFOSYS LIMITED AND SUBSIDIARIES
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Infosys Limited and subsidiaries (In ₹ crore except equity share data) Note June 30, 2025 March 31, 2025 ASSETS Current assets Cash and cash equivalents 2.1 27,459 24,455 Current investments 2.2 7,606 12,482 Trade receivables 32,414 31,158 Unbilled revenue 2.17 13,617 12,851 Prepayments and other current assets 2.4 12,279 12,986 Income tax assets 2.12 2,974 2,975 Derivative financial instruments 2.3 69 192 Total current assets 96,418 97,099 Non-current assets Property, plant and equipment 2.7 12,725 12,800 Right-of-use assets 2.8 6,341 6,311 Goodwill 2.9 11,119 10,106 Intangible assets 3,175 2,766 Non-current investments 2.2 10,643 11,059 Unbilled revenue 2.17 2,246 2,232 Deferred income tax assets 2.12 1,269 1,108 Income tax assets 2.12 1,671 1,622 Other non-current assets 2.4 4,012 3,800 Total non-current assets 53,201 51,804 Total assets 149,619 148,903 Current liabilities Trade payables 3,616 4,164 Lease liabilities 2.8 2,542 2,455 Derivative financial instruments 2.3 292 63 Current income tax liabilities 2.12 6,065 4,853 Unearned revenue 8,527 8,492 Employee benefit obligations 3,299 2,908 Provisions 2.6 1,434 1,475 Other current liabilities 2.5 18,429 18,440 Total current liabilities 44,204 42,850 Non-current liabilities Lease liabilities 2.8 5,943 5,772 Deferred income tax liabilities 2.12 1,750 1,722 Employee benefit obligations 106 99 Other non-current liabilities 2.5 2,262 2,257 Total non-current liabilities 10,061 9,850 Total liabilities 54,265 52,700 Equity 2.18 2,074 2,073 Share premium 2,360 2,180 Retained earnings 80,025 80,096 Cash flow hedge reserves (12) (18) Other reserves 6,221 8,298 Capital redemption reserve 169 169 Other components of equity 4,117 3,020 Total equity attributable to equity holders of the Company 94,954 95,818 Non-controlling interests 400 385 Total equity 95,354 96,203 Total liabilities and equity 149,619 148,903 The accompanying notes form an integral part of the interim condensed consolidated financial statements. As per our report of even date attached for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm’s Registration No: 117366W/ W-100018 Vikas Bagaria Nandan M. Nilekani Salil Parekh Bobby Parikh Partner Chairman Chief Executive Officer Director Membership No. 060408 and Managing Director Bengaluru Jayesh Sanghrajka A.G.S. Manikantha July 23, 2025 Chief Financial Officer Company Secretary LIABILITIES AND EQUITY Share capital - ₹5 par value 4,800,000,000 (4,800,000,000) equity shares authorized, issued and outstanding 4,145,174,219 (4,143,607,528) equity shares fully paid up, net of 9,098,409 (9,655,927) treasury shares as at June 30, 2025 (March 31, 2025) Condensed Consolidated Balance Sheet as at 1
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(In ₹ crore except equity share and per equity share data) 2025 2024 Revenues 2.16 42,279 39,315 Cost of sales 2.19 29,224 27,177 Gross profit 13,055 12,138 Operating expenses Selling and marketing expenses 2.19 2,208 1,937 Administrative expenses 2.19 2,044 1,913 Total operating expenses 4,252 3,850 Operating profit 8,803 8,288 Other income, net 2.19 1,042 838 Finance cost 105 105 Profit before income taxes 9,740 9,021 Income tax expense 2.12 2,816 2,647 Net profit 6,924 6,374 Other comprehensive income (70) 20 2.2 35 14 (35) 34 6 (3) 1,019 (104) 2.2 123 40 1,148 (67) Total other comprehensive income/(loss), net of tax 1,113 (33) Total comprehensive income 8,037 6,341 Profit attributable to: Owners of the Company 6,921 6,368 Non-controlling interests 3 6 6,924 6,374 Total comprehensive income attributable to: Owners of the Company 8,024 6,337 Non-controlling interests 13 4 8,037 6,341 Earnings per equity share Basic (₹) 16.70 15.38 Diluted (₹) 16.68 15.35 Basic (in shares) 2.13 4,143,971,592 4,140,272,627 Diluted (in shares) 2.13 4,150,497,004 4,148,077,672 The accompanying notes form an integral part of the interim condensed consolidated financial statements. As per our report of even date attached for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm’s Registration No: 117366W/ W-100018 Vikas Bagaria Nandan M. Nilekani Salil Parekh Bobby Parikh Partner Chairman Chief Executive Officer Director Membership No. 060408 and Managing Director Bengaluru Jayesh Sanghrajka A.G.S. Manikantha July 23, 2025 Chief Financial Officer Company Secretary Weighted average equity shares used in computing earnings per equity share Three months ended June 30, Infosys Limited and subsidiaries Equity shares of par value ₹5/- each Items that will not be reclassified subsequently to profit or loss Remeasurement of the net defined benefit liability/asset, net Equity instruments through other comprehensive income, net Items that will be reclassified subsequently to profit or loss Fair value changes on derivatives designated as cash flow hedge, net Exchange differences on translation of foreign operations Fair value changes on investments, net NoteCondensed Consolidated Statement of Comprehensive Income for the 2
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(In ₹ crore except equity share data) Condensed Consolidated Statement of Changes in Equity Number of Shares(1) Share capital Share premium Retained earnings Other reserves(2) Capital redemption reserve Other components of equity Cash flow hedge reserve Total equity attributable to equity holders of the Company Non- controlling interest Total equity Balance as at April 1, 2024 4,139,950,635 2,071 1,550 69,674 12,104 169 2,542 6 88,116 345 88,461 Net profit - - - 6,368 - - - - 6,368 6 6,374 - - - - - - 20 - 20 - 20 - - - - - - 14 - 14 - 14 - - - - - - - (3) (3) - (3) - - - - - - (102) - (102) (2) (104) - - - - - - 40 - 40 - 40 - - - 6,368 - - (28) (3) 6,337 4 6,341 1,831,328 1 2 - - - - - 3 - 3 - - 208 - - - - - 208 - 208 - 2 - - - - - 2 2 - - (18) 18 - - - - - - - - - - 247 (247) - - - - - - - - - 104 (104) - - - - - - - - - (11,597) - - - - (11,597) - (11,597) 4,141,781,963 2,072 1,744 64,814 11,753 169 2,514 3 83,069 349 83,418 Infosys Limited and subsidiaries Employee stock compensation expense (Refer to note 2.11) Shares issued on exercise of employee stock options (Refer to note 2.11) Changes in equity for three months ended June 30, 2024 Fair value changes on derivatives designated as Cash flow hedge, net* Remeasurement of the net defined benefit liability/asset, net* Exchange differences on translation of foreign operations Fair value changes on investments, net* Total comprehensive income for the period Equity instruments through other comprehensive income, net* Income tax benefit arising on exercise of stock options (Refer to note 2.12) Transferred from other reserves to retained earnings Dividends# Transfer on account of options not exercised Balance as at June 30, 2024 Transferred from other reserves on utilization 3
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(In ₹ crore except equity share data) Condensed Consolidated Statement of Changes in Equity Number of Shares(1) Share capital Share premium Retained earnings Other reserves(2) Capital redemption reserve Other components of equity Cash flow hedge reserve Total equity attributable to equity holders of the Company Non- controlling interest Total equity Infosys Limited and subsidiaries Balance as at April 1, 2025 4,143,607,528 2,073 2,180 80,096 8,298 169 3,020 (18) 95,818 385 96,203 Net profit - - - 6,921 - - - - 6,921 3 6,924 - - - - - - (70) - (70) - (70) - - - - - - 35 - 35 - 35 - - - - - - - 6 6 - 6 - - - - - - 1,009 - 1,009 10 1,019 - - - - - - 123 - 123 - 123 - - - 6,921 - - 1,097 6 8,024 13 8,037 1,566,691 1 - - - - - - 1 - 1 - - 231 - - - - - 231 - 231 - - 2 - - - - - 2 - 2 - - - (10) - - - - (10) - (10) - - - 7 - - - - 7 2 9 - - (53) 53 - - - - - - - - - - 120 (120) - - - - - - - - - 1,957 (1,957) - - - - - - - - - (9,119) - - - - (9,119) - (9,119) Balance as at June 30, 2025 4,145,174,219 2,074 2,360 80,025 6,221 169 4,117 (12) 94,954 400 95,354 * net of tax # net of treasury shares The accompanying notes form an integral part of the interim condensed consolidated financial statements. for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm’s Registration No: 117366W/ W-100018 Vikas Bagaria Nandan M. Nilekani Salil Parekh Bobby Parikh Partner Chairman Chief Executive Officer Director Membership No. 060408 and Managing Director Jayesh Sanghrajka A.G.S. Manikantha Bengaluru Chief Financial Officer Company Secretary July 23, 2025 Income tax benefit arising on exercise of stock options (Refer to note 2.12) Transferred on account of options not exercised for Deloitte Haskins & Sells LLP (1) excludes treasury shares of 9,098,409 as at June 30, 2025, 9,655,927 as at April 1, 2025, 10,246,512 as at June 30, 2024 and 10,916,829 as at April 1, 2024 held by consolidated trust. (2) Represents the Special Economic Zone Re-investment reserve created out of the profit of the eligible SEZ unit in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act,1961. The reserve should be utilized by the Group for acquiring new plant and machinery for the purpose of its business in terms of the provisions of the Sec 10AA(2) of the Income Tax Act, 1961. Transferred from other reserves on utilization Dividends# As per our report of even date attached Transferred from other reserves to retained earnings Financial liability under option arrangements Changes in the controlling stake of a subsidiary Employee stock compensation expense (Refer to note 2.11) Fair value changes on derivatives designated as cash flow hedge, net* Equity instruments through other comprehensive income, net* Remeasurement of the net defined benefit liability/asset, net* Shares issued on exercise of employee stock options (Refer to note 2.11) Total comprehensive income for the period Fair value changes on investments, net* Exchange differences on translation of foreign operations Changes in equity for three months ended June 30, 2025 4
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Infosys Limited and subsidiaries Condensed Consolidated Statement of Cash Flows Accounting Policy (In ₹ crore) 2025 2024 Operating activities Net Profit 6,924 6,374 Adjustments to reconcile net profit to net cash provided by operating activities Depreciation and amortization 1,140 1,149 Income tax expense 2.12 2,816 2,647 Finance cost 105 106 Interest and dividend income (358) (359) Exchange differences on translation of assets and liabilities, net 285 23 Impairment loss recognized/(reversed) under expected credit loss model 34 (3) Stock compensation expense 236 211 Provision for post sale client support (177) (108) Other adjustments 332 55 Changes in working capital Trade receivables and unbilled revenue (1,945) (499) Prepayments and other assets 714 (167) Trade payables (673) (271) Unearned revenue 20 (385) Other liabilities and provisions 819 (4) Cash generated from operations 10,272 8,769 Income taxes (paid) / received (1,874) 841 Net cash generated by operating activities 8,398 9,610 Investing activities Expenditure on property, plant and equipment and intangibles (865) (455) Deposits placed with corporation (395) (335) Redemption of deposits placed with corporation 127 120 Interest and dividend received 311 299 Payment for acquisition of business, net of cash acquired 2.10 (632) (124) Other receipts 12 1 - Quoted debt securities (1,652) (1,051) - Liquid mutual fund units (17,237) (16,989) - Certificates of deposit (2,734) (1,440) - Commercial paper (149) (2,226) - Other investments (12) (6) Proceeds on sale of investments - Quoted debt securities 2,998 690 - Liquid mutual fund units 15,746 15,975 - Certificates of deposit 4,831 2,820 - Commercial paper 3,850 7,135 Net cash generated from investing activities 4,199 4,414 Three months ended June 30, Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Group are segregated. The Group considers all highly liquid investments that are readily convertible to known amounts of cash to be cash equivalents. Payments to acquire Investments NoteParticulars 5
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Financing activities Payment of lease liabilities (706) (576) Payment of dividends (9,120) - Other payments (52) (118) Shares issued on exercise of employee stock options 1 3 Net cash used in financing activities (9,877) (691) Net increase/(decrease) in cash and cash equivalents 2,720 13,333 Effect of exchange rate changes on cash and cash equivalents 284 (62) Cash and cash equivalents at the beginning of the period 2.1 24,455 14,786 Cash and cash equivalents at the end of the period 2.1 27,459 28,057 Supplementary information: Restricted cash balance 2.1 407 398 Closing cash and cash equivalents as per consolidated statement of cash flows 27,459 28,057 Less: Earmarked bank balance for dividend - 11,625 Closing cash and cash equivalents as per Consolidated Balance Sheet 27,459 16,432 The accompanying notes form an integral part of the interim condensed consolidated financial statements. As per our report of even date attached for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm’s Registration No: 117366W/ W-100018 Vikas Bagaria Nandan M. Nilekani Salil Parekh Bobby Parikh Partner Chairman Chief Executive Officer Director Membership No. 060408 and Managing Director Jayesh Sanghrajka A.G.S. Manikantha Bengaluru Chief Financial Officer Company Secretary July 23, 2025 6
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INFOSYS LIMITED AND SUBSIDIARIES Overview and Notes to the Interim condensed Consolidated Financial Statements 1. Overview 1.1 Company overview Infosys Limited ('the Company' or Infosys) provides consulting, technology, outsourcing and next-generation digital services, to enable clients to execute strategies for their digital transformation. Infosys strategic objective is to build a sustainable organization that remains relevant to the agenda of clients, while creating growth opportunities for employees and generating profitable returns for investors. Infosys strategy is to be a navigator for our clients as they ideate, plan and execute on their journey to a digital future. Infosys together with its subsidiaries and controlled trusts is herein after referred to as the "Group". The Company is a public limited company incorporated and domiciled in India and has its registered office at Electronics City, Hosur Road, Bengaluru -560100, Karnataka, India. The Company has its primary listings on the BSE Ltd. and National Stock Exchange of India Limited. The Company’s American Depositary Shares (ADS) representing equity shares are listed on the New York Stock Exchange (NYSE). The Group's interim condensed consolidated financial statements are approved for issue by the Company's Board of Directors on July 23, 2025. 1.2 Basis of preparation of financial statements The interim condensed consolidated financial statements have been prepared in compliance with IAS 34, Interim Financial Reporting as issued by International Accounting Standards Board, under the historical cost convention on the accrual basis except for certain financial instruments which have been measured at fair values defined benefit liability/(asset) which is recognized at the present value of defined benefit obligation less fair value of plan assets. Accordingly, these interim condensed consolidated financial statements do not include all the information required for a complete set of financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the company’s Annual Report on Form 20-F for the year ended March 31, 2025. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The material accounting policy information used in preparation of the audited interim condensed consolidated financial statements have been discussed in the respective notes. 1.3 Basis of consolidation Infosys consolidates entities which it owns or controls. The interim condensed consolidated financial statements comprise the financial statements of the Company, its controlled trusts and its subsidiaries. Control exists when the parent has power over the entity, is exposed, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns by using its power over the entity. Power is demonstrated through existing rights that give the ability to direct relevant activities, those which significantly affect the entity's returns. Subsidiaries are consolidated from the date control commences until the date control ceases. The financial statements of the Group Companies are consolidated on a line-by-line basis and intra-group balances and transactions including unrealized gain / loss from such transactions are eliminated upon consolidation. These financial statements are prepared by applying uniform accounting policies in use at the Group. Non-controlling interests which represent part of the net profit or loss and net assets of subsidiaries that are not, directly or indirectly, owned or controlled by the Company, are excluded. 1.4 Use of estimates and judgments The preparation of the interim condensed consolidated financial statements in conformity with IFRS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and reported amounts of revenues and expenses during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in Note 1.5. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates and judgments are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the interim condensed consolidated financial statements. 1.5 Critical accounting estimates and judgments a. Revenue recognition The Group’s contracts with customers include promises to transfer multiple products and services to a customer. Revenues from customer contracts are considered for recognition and measurement when the contract has been approved, in writing, by the parties to the contract, the parties to the contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable. The Group assesses the services promised in a contract and identifies distinct performance obligations in the contract. Identification of distinct performance obligations to determine the deliverables and the ability of the customer to benefit independently from such deliverables, and allocation of transaction price to these distinct performance obligations involves significant judgement. Fixed price maintenance revenue is recognized ratably on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period. Revenue from a fixed price maintenance contract is recognized ratably using a percentage of completion method when the pattern of benefits from the services rendered to the customer and the Group’s costs to fulfil the contract is not even through the period of the contract because the services are generally discrete in nature and not repetitive. The use of method to recognize the maintenance revenues requires judgment and is based on the promises in the contract and nature of the deliverables. The Group uses the percentage-of-completion method in accounting for other fixed-price contracts. Use of the percentage-of-completion method requires the Group to determine the actual efforts or costs expended to date as a proportion of the estimated total efforts or costs to be incurred. Efforts or costs expended have been used to measure progress towards completion as there is a direct relationship between input and productivity. The estimation of total efforts or costs involves significant judgement and is assessed throughout the period of the contract to reflect any changes based on the latest available information. Contracts with customers includes subcontractor services or third-party vendor equipment or software in certain integrated services arrangements. In these types of arrangements, revenue from sales of third-party vendor products or services is recorded net of costs when the Group is acting as an agent between the customer and the vendor, and gross when the Group is the principal for the transaction. In doing so, the Group first evaluates whether it obtains control of the specified goods or services before they are transferred to the customer. The Group considers whether it is primarily responsible for fulfilling the promise to provide the specified goods or services, inventory risk, pricing discretion and other factors to determine whether it controls the specified goods or services and therefore, is acting as a principal or an agent. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract. 7
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b. Income taxes The Group's two major tax jurisdictions are India and the United States, though the Company also files tax returns in other overseas jurisdictions. Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions. In assessing the realizability of deferred income tax assets, the Management considers whether some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax assets are deductible, the Management believes that the group will realize the benefits of those deductible differences. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. (Refer to Note 2.12) c. Business combinations and intangible assets Business combinations are accounted for using IFRS 3 (Revised), Business Combinations. IFRS 3 requires us to fair value identifiable intangible assets and contingent consideration to ascertain the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. These valuations are conducted by external valuation experts. Estimates are required to be made in determining the value of contingent consideration, value of option arrangements and intangible assets. These measurements are based on information available at the acquisition date and are based on expectations and assumptions that have been deemed reasonable by Management. (Refer to Note 2.10 and 2.9.2). d. Property, plant and equipment Property, plant and equipment represent a significant proportion of the asset base of the Group. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Group's assets are determined by Management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. (Refer to Note 2.7). e. Impairment of Goodwill Goodwill is tested for impairment on an annual basis and whenever there is an indication that the recoverable amount of a cash generating unit (CGUs) is less than its carrying amount. For the impairment test, goodwill is allocated to the CGU or groups of CGUs which benefit from the synergies of the acquisition and which represent the lowest level at which goodwill is monitored for internal management purposes. The recoverable amount of CGUs is determined based on higher of value-in-use and fair value less cost to sell. Key assumptions in the cash flow projections are prepared based on current economic conditions and comprises estimated long term growth rates, weighted average cost of capital and estimated operating margins. (Refer to note 2.9.1) 1.6 Recent accounting pronouncements New and revised IFRS Standards in issue but not yet effective: IFRS 18 Presentation and Disclosures in Financial Statements Presentation and Disclosures in Financial Statements Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures Amendments to the Classification and Measurement of Financial Instruments Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures Contracts Referencing Nature-dependent Electricity IFRS 18 – Presentation and Disclosures in Financial Statements On April 9, 2025, IASB has issued IFRS 18 – Presentation and Disclosures in Financial Statements that will replace IAS 1 Presentation of Financial Statements from its effective date. IFRS 18 introduces new requirements for information presented in the primary financial statements and disclosed in the notes. The new requirements are focused on the statement of profit or loss. IFRS 18 introduces three categories for income and expenses, that is, operating, investing and financing to improve the structure of the income statement. IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, although early adoption is permitted. The Group is yet to evaluate the impact of the amendment. Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures On May 30, 2025, IASB has issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures, which clarifies the classification of financial assets with environmental, social and corporate governance (ESG) and similar features, derecognition of financial liability settled through electronic payment systems and also introduces additional disclosure requirements to enhance transparency for investors regarding investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features. The effective date for adoption of this amendment is annual reporting periods beginning on or after January 1, 2026, although early adoption is permitted. The Group is yet to evaluate the impact of the amendment. On December 18, 2024, IASB has issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures, relating to factors an entity is required to consider in assessing the own-use requirements for contracts to buy and take delivery of nature-dependent renewable electricity; hedge accounting treatment for nature-dependent renewable electricity and related disclosures. The effective date for adoption of these amendments is annual reporting periods beginning on or after January 1, 2026, although early adoption is permitted. The Group has evaluated the amendment and there is no impact on its consolidated financial statements. 8
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2. Notes to the Interim Condensed Consolidated Financial Statements 2.1 Cash and cash equivalents Cash and cash equivalents consist of the following: (In ₹ crore) June 30, 2025 March 31, 2025 Cash and bank deposits 27,459 24,455 Total Cash and cash equivalents 27,459 24,455 2.2 Investments (In ₹ crore) Particulars June 30, 2025 March 31, 2025 (i) Current Investments Amortized Cost Quoted debt securities 187 169 Fair Value through other comprehensive income Quoted debt securities 2,439 3,211 Commercial papers - 3,641 Certificate of deposit 1,470 3,504 Fair Value through profit or loss Liquid mutual fund units 3,510 1,957 Total current investments 7,606 12,482 (ii) Non-current Investments Amortized Cost Quoted debt securities 1,101 1,481 Fair Value through other comprehensive income Quoted debt securities 8,562 8,666 Quoted equity securities 97 57 Unquoted equity and preference securities 169 169 Fair Value through profit or loss Target maturity fund units 476 465 Unquoted equity and preference securities 25 25 Others(1) 213 196 Total non-current investments 10,643 11,059 Total investments 18,249 23,541 Investments carried at amortized cost 1,288 1,650 Investments carried at fair value through other comprehensive income 12,737 19,248 Investments carried at fair value through profit or loss 4,224 2,643 (1) Uncalled capital commitments outstanding as at June 30, 2025 and March 31, 2025 was ₹115 crore and ₹122 crore, respectively. Refer to note 2.3 for accounting policies on financial instruments. As at Cash and cash equivalents as at June 30, 2025 and March 31, 2025 include restricted cash and bank balances of ₹407 crore and ₹424 crore, respectively. The restrictions are primarily on account of bank balances held by irrevocable trusts controlled by the Company. The deposits maintained by the Group with banks and financial institutions comprise of time deposits, which can be withdrawn by the Group at any point without prior notice or penalty on the principal. The carrying value of the investments are as follows: As at Particulars 9
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Method of fair valuation: (In ₹ crore) Class of Investment Method June 30, 2025 March 31, 2025 Liquid mutual fund units - carried at fair value through profit or loss 3,510 1,957 Target maturity fund units - carried at fair value through profit or loss 476 465 Quoted debt securities - carried at amortized cost 1,408 1,812 Quoted debt securities - carried at fair value through other comprehensive income 11,001 11,877 Commercial papers - carried at fair value through other comprehensive income - 3,641 Certificates of deposit - carried at fair value through other comprehensive income 1,470 3,504 Quoted equity securities - carried at fair value through other comprehensive income Quoted price 97 57 Unquoted equity and preference securities - carried at fair value through profit or loss 25 25 Unquoted equity and preference securities - carried at fair value through other comprehensive income 169 169 Others - carried at fair value through profit or loss 213 196 Total 18,369 23,703 Note: Certain quoted investments are classified as Level 2 in the absence of active market for such investments. Fair value as at Quoted price Discounted cash flows method, Market multiples method, option pricing model Quoted price and market observable inputs Quoted price and market observable inputs Discounted cash flows method, Market multiples method, option pricing model Market observable inputs Market observable inputs Quoted price Discounted cash flows method, Market multiples method, option pricing model 10
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2.3 Financial instruments Accounting Policy 2.3.1 Initial recognition 2.3.2 Subsequent measurement a. Non-derivative financial instruments (ii) Financial assets carried at fair value through other comprehensive income (FVOCI) (iv) Financial liabilities (ii) Cash flow hedge Primarily, the Group designates certain foreign exchange forward and options contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash transactions. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedging reserve. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the net profit in the interim consolidated statement of comprehensive income. If the hedging instrument no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the forecasted transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the net profit in the consolidated statement of comprehensive income upon the occurrence of the related forecasted transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified to net profit in the consolidated statement of comprehensive income. 2.3.3 Derecognition of financial instruments The Group recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities which are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date. A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Group has made an irrevocable election for certain investments which are classified as equity instruments to present the subsequent changes in fair value in other comprehensive income based on its business model. Although the Group believes that these derivatives constitute hedges from an economic perspective, they may not qualify for hedge accounting under IFRS 9, Financial Instruments. Any derivative that is either not designated as hedge, or is so designated but is ineffective as per IFRS 9, is categorized as a financial asset or financial liability, carried at fair value through profit or loss. The Group holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for such contracts is generally a bank. This category includes derivative financial assets or liabilities which are not designated as hedges. A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss. (iii) Financial assets carried at fair value through profit or loss (FVTPL) Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration and financial liability under option arrangements recognized in a business combination which are subsequently measured at fair value through profit or loss. (i) Financial assets carried at amortized cost b. Derivative financial instruments (i) Financial assets or financial liabilities, carried at fair value through profit or loss Derivatives not designated as hedges are recognized initially at fair value and attributable transaction costs are recognized in net profit in the consolidated statement of comprehensive income when incurred. Subsequent to initial recognition, these derivatives are measured at fair value through profit or loss and the resulting exchange gains or losses are included in other income. Assets/ liabilities in this category are presented as current assets/current liabilities if they are either held for trading or are expected to be realized within 12 months after the Balance Sheet date. The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under IFRS 9. A financial liability (or a part of a financial liability) is derecognized from the Group's Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires. 11
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2.3.5 Impairment Financial instruments by category The carrying value and fair value of financial instruments by categories as at June 30, 2025 are as follows: (In ₹ crore) Designated upon initial recognition Mandatory Equity instruments designated upon initial recognition Mandatory Assets: Cash and cash equivalents (Refer to note 2.1) 27,459 - - - - 27,459 27,459 Investments (Refer to note 2.2) Liquid mutual fund units - - 3,510 - - 3,510 3,510 Target maturity fund units - - 476 - - 476 476 Quoted debt securities 1,288 - - - 11,001 12,289 12,409 (1) Certificates of deposit - - - - 1,470 1,470 1,470 Quoted equity securities - - - 97 - 97 97 Unquoted equity and preference securities - 25 - 169 - 194 194 Unquoted investment others - - 213 - - 213 213 Trade receivables 32,414 - - - - 32,414 32,414 Unbilled revenues (Refer to note 2.17)(3) 10,598 - - - - 10,598 10,598 7,355 - - - - 7,355 7,294 (2) Derivative financial instruments - - 40 - 29 69 69 Total 79,114 25 4,239 266 12,500 96,144 96,203 Liabilities: Trade payables 3,616 - - - - 3,616 3,616 Lease liabilities (Refer to note 2.8) 8,485 - - - - 8,485 8,485 Derivative financial instruments - - 267 - 25 292 292 - - 729 - - 729 729 16,372 - 104 - - 16,476 16,476 Total 28,473 - 1,100 - 25 29,598 29,598 (1) On account of fair value changes including interest accrued (2) Excludes interest accrued on quoted debt securities carried at amortized cost of ₹61 crore. (3) Excludes unbilled revenue for contracts where the right to consideration is dependent on completion of contractual milestones Financial assets / liabilities at fair value through profit or loss Amortized cost Total carrying value Total fair value The Group recognizes loss allowances using the expected credit loss (ECL) model for the financial assets and unbilled revenue which are not fair valued through profit or loss. Loss allowance for trade receivables and unbilled revenues with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The Group determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Group considers current and anticipated future economic conditions relating to industries the Group deals with and the countries where it operates. The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recorded is recognized as an impairment loss or gain in the condensed consolidated statement of comprehensive income. Financial assets / liabilities at fair value through OCI Financial liability under option arrangements (Refer to note 2.5) Prepayments and other assets (Refer to note 2.4) Other liabilities including contingent consideration (Refer to note 2.5) Refer to table 'Financial instruments by category' below for the disclosure on carrying value and fair value of financial assets and liabilities. For financial assets and liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the carrying amounts approximate fair value due to the short maturity of these instruments. 2.3.4 Fair value of financial instruments In determining the fair value of its financial instruments, the Group uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices ,option pricing model, market multiples, and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized. Particulars 12
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The carrying value and fair value of financial instruments by categories as at March 31, 2025 were as follows: (In ₹ crore) Designated upon initial recognition Mandatory Equity instruments designated upon initial recognition Mandatory Assets: Cash and cash equivalents (Refer to note 2.1) 24,455 - - - - 24,455 24,455 Investments (Refer to note 2.2) Liquid mutual fund units - - 1,957 - - 1,957 1,957 Target maturity fund units - - 465 - - 465 465 Quoted debt securities 1,650 - - - 11,877 13,527 13,689 (1) Commercial papers - - - - 3,641 3,641 3,641 Certificates of deposit - - - - 3,504 3,504 3,504 Quoted equity securities - - - 57 - 57 57 Unquoted equity and preference securities - 25 - 169 - 194 194 Unquoted investments others - - 196 - - 196 196 Trade receivables 31,158 - - - - 31,158 31,158 Unbilled revenue (Refer to note 2.17)(3) 10,214 - - - - 10,214 10,214 7,210 - - - - 7,210 7,130 (2) Derivative financial instruments - - 164 - 28 192 192 Total 74,687 25 2,782 226 19,050 96,770 96,852 Liabilities: Trade payables 4,164 - - - - 4,164 4,164 Lease liabilities (Refer to note 2.8) 8,227 - - - - 8,227 8,227 Derivative financial instruments - - 30 - 33 63 63 - - 667 - - 667 667 16,511 - 31 - - 16,542 16,542 Total 28,902 - 728 - 33 29,663 29,663 (1) On account of fair value changes including interest accrued (2) Excludes interest accrued on quoted debt securities carried at amortized cost of ₹80 crore. (3) Excludes unbilled revenue for contracts where the right to consideration is dependent on completion of contractual milestones Fair value hierarchy Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). (In ₹ crore) Level 1 Level 2 Level 3 Assets Investments (Refer to note 2.2) 3,510 3,510 - - 476 476 - - 12,409 10,628 1,781 - 1,470 - 1,470 - 97 97 - - 194 - - 194 Investments in unquoted investments others 213 - - 213 Others 69 - 69 - Liabilities 292 - 292 - Financial liability under option arrangements (Refer to note 2.5)(1) 729 - - 729 Liability towards contingent consideration (Refer to note 2.5)(2) 104 - - 104 Investments in target maturity fund units Financial assets/ liabilities at fair value through profit or loss Amortized cost Total carrying value Total fair value Other liabilities including contingent consideration (Refer to note 2.5) Investments in quoted debt securities For trade receivables, trade payables, other assets and payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments. Investments in certificates of deposit Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at June 30, 2025 is as follows: Derivative financial instruments - gain (1) Discount rate ranges from 9% to 15% Financial assets/liabilities at fair value through OCI Prepayments and other assets (Refer to note 2.4) Investments in quoted equity securities (2) Discount rate ranges from 3% to 6% Fair value measurement at end of the reporting period using Derivative financial instruments - loss Investments in liquid mutual fund units As at June 30, 2025Particulars Financial liability under option arrangements (Refer to note 2.5) Particulars Investments in unquoted equity and preference securities 13
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(In ₹ crore) Level 1 Level 2 Level 3 Assets Investments (Refer to note 2.2) 1,957 1,957 - - 465 465 - - 13,689 13,099 590 - 194 - - 194 57 57 - - Investments in certificates of deposit 3,504 - 3,504 - Investments in commercial papers 3,641 - 3,641 - Investments in unquoted investments others 196 - - 196 Others 192 - 192 - Liabilities 63 - 63 - Financial liability under option arrangements (Refer to note 2.5)(1) 667 - - 667 Liability towards contingent consideration (Refer to note 2.5)(2) 31 - - 31 (2) Discount rate - 6% Investments in quoted equity securities During the year ended March 31, 2025, quoted debt securities of ₹297 crore were transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price and quoted debt securities of ₹554 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs. During the three month ended June 30, 2025, quoted debt securities of ₹1,184 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs. Particulars The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March 31, 2025 was as follows: (1) Discount rate ranges from 9% to 15% Derivative financial instruments- loss Fair value measurement at end of the reporting period using Investments in quoted debt securities Investments in unquoted equity and preference securities Investments in liquid mutual fund units Investments in target maturity fund units As at March 31, 2025 A one percentage point change in the unobservable inputs used in fair valuation of Level 3 assets and liabilities does not have a significant impact in its value. Majority of investments of the Group are fair valued based on Level 1 or Level 2 inputs. These investments primarily include investment in liquid mutual fund units, target maturity fund units, quoted debt securities, certificates of deposit, commercial paper, quoted bonds issued by government and quasi-government organizations. The Group invests after considering counterparty risks based on multiple criteria including Tier I Capital, Capital Adequacy Ratio, Credit Rating, Profitability, NPA levels and Deposit base of banks and financial institutions. These risks are monitored regularly as per Group’s risk management program. Derivative financial instruments- gain 14
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2.4 Prepayments and other assets Prepayments and other assets consist of the following: (In ₹ crore) June 30, 2025 March 31, 2025 Current Security deposits(1) 67 65 Loans to employees(1) 239 249 Prepaid expenses(2) 3,059 3,080 Interest accrued and not due(1) 520 842 Withholding taxes and others(2)(4) 2,245 2,841 Advance payments to vendors for supply of goods(2) 272 413 Deposit with corporations(1)(3) 3,156 2,949 Deferred contract cost Cost of obtaining a contract (2) 272 343 Cost of fulfillment (2) 543 504 Net investment in lease(1) 1,359 1,139 Other non financial assets (2) 128 91 Other financial assets(1) 419 470 Total Current prepayment and other assets 12,279 12,986 Non-current Security deposits(1) 281 273 Loans to employees(1) 12 16 Prepaid expenses(2) 394 282 Withholding taxes and others(2)(4) 544 534 Deposit with corporations(1)(3) 143 82 Deferred contract cost Cost of obtaining a contract (2) 315 312 Cost of fulfillment (2) 952 879 212 297 Net investment in lease(1) 1,134 1,106 Other financial assets(1) 25 19 Total Non- current prepayment and other assets 4,012 3,800 16,291 16,786 (1) Financial assets carried at amortized cost 7,355 7,210 (2) Non financial assets As at (4) Withholding taxes and others primarily consist of input tax credits and VAT recoverable from tax authorities. Particulars Total prepayment and other assets (3) Deposit with corporation represents amounts deposited to settle certain employee-related obligations as and when they arise during the normal course of business. Defined benefit plan assets(2) 15
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2.5 Other liabilities Other liabilities comprise the following: (In ₹ crore) June 30, 2025 March 31, 2025 Current Accrued compensation to employees(1) 4,423 4,924 Accrued defined benefit liability (3) 11 6 Accrued expenses(1) 9,346 8,467 Withholding taxes and others (3) 3,271 3,256 Liabilities of controlled trusts(1) 173 173 Liability towards contingent consideration(2) 32 11 Capital Creditors(1) 99 520 Financial liability under option arrangements (2)(4) 608 552 Other non-financial liabilities (3) 12 11 Other financial liabilities(1)(5) 454 520 Total current other liabilities 18,429 18,440 Non-current Accrued expenses(1) 1,859 1,890 Accrued defined benefit liability (3) 120 115 Accrued compensation to employees(1) 13 12 Liability towards contingent consideration(2) 72 20 Financial liability under option arrangements (2)(4) 121 115 Other financial liabilities(1)(5) 5 5 Other non-financial liabilities(3) 72 100 Total non-current other liabilities 2,262 2,257 Total other liabilities 20,691 20,697 (1) Financial liability carried at amortized cost 16,372 16,511 (2) Financial liability carried at fair value through profit or loss 833 698 (3)Non financial liabilities As at Accrued expenses primarily relates to cost of technical sub-contractors, telecommunication charges, legal and professional charges, brand building expenses, overseas travel expenses and office maintenance and cost of third party software and hardware. Particulars (4) Represents liability related to options issued by the Group over the non-controlling interests in its subsidiaries (5) The Group entered into financing arrangements with a third party towards technology assets taken over by the Group from a customer as a part of transformation project which was not considered as distinct goods or services as the control related to those assets was not transferred to the Group in accordance with IFRS 15 - Revenue from contract with customers. As at June 30, 2025 and March 31, 2025, the financial liability pertaining to such arrangements amounts to ₹63 crore and ₹67 crore, respectively. 16
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2.6 Provisions and other contingencies Accounting Policy 2.6.1 Provisions a. Post sales client support b. Onerous contracts Provision for post sales client support and other provisions (In ₹ crore) June 30, 2025 March 31, 2025 Post sales client support and other provisions 1,280 1,325 Provisions pertaining to settlement (refer to note 2.6.2) 154 150 Total provisions 1,434 1,475 2.6.2 Legal proceedings The amount paid to statutory authorities against the claims (excluding demands from income tax authorities - Refer to note 2.12) amounted to ₹17 crore and ₹8 crore as at June 30, 2025 and March 31, 2025, respectively. Provision for post sales client support and other provisions majorly represents cost associated with providing post sales support services which are accrued at the time of recognition of revenues and are expected to be utilized over a period of 1 year. As at June 30, 2025 and March 31, 2025 claims against the Group, not acknowledged as debts, (excluding demands from income tax authorities - Refer to note 2.12) amounted to ₹1,026 crore and ₹1,020 crore respectively. Provision for post sales client support and other provisions is included in cost of sales in the interim condensed consolidated statement of comprehensive income. In November 2023, certain systems of Infosys McCamish Systems LLC (“McCamish”), a subsidiary of Infosys BPM Limited (a wholly owned subsidiary of Infosys Limited), were encrypted by ransomware, resulting in the non-availability of certain applications and systems. McCamish initiated its incident response and engaged cybersecurity and other specialists to assist in its investigation of and response to the incident and remediation and restoration of impacted applications and systems. By December 31, 2023, McCamish, with external specialists’ assistance, substantially remediated and restored the affected applications and systems. Actions taken by McCamish included investigative analysis conducted by a third-party cybersecurity firm to determine, among other things, whether and the extent to which company or customer data was subject to unauthorized access or exfiltration. McCamish also engaged a third-party eDiscovery vendor in assessing the extent and nature of such data. McCamish in coordination with its third-party eDiscovery vendor has identified corporate customers and individuals whose information was subject to unauthorized access and exfiltration. McCamish processes personal data on behalf of its corporate customers. As at A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.The Group recognizes a reimbursement asset when, and only when, it is virtually certain that the reimbursement will be received if the Group settles the obligation. The Group provides its clients with a fixed-period post sales support on its fixed-price, fixed-timeframe contracts. Costs associated with such support services are accrued at the time related revenues are recorded and included in cost of sales. The Group estimates such costs based on historical experience and estimates are reviewed on a periodic basis for any material changes in assumptions and likelihood of occurrence. Particulars Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. Provisions for onerous contracts are recognized when the expected benefits to be derived by the Group from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established the Group recognizes any impairment loss on the assets associated with that contract. McCamish Cybersecurity incident From March 6, 2024 through July 25, 2024, six actions were filed in the U.S. District Court for the Northern District of Georgia against McCamish. The actions arise out of the cybersecurity incident at McCamish initially disclosed on November 3, 2023. All six actions have since been consolidated, and the consolidated class action complaint was filed on November 7, 2024, purportedly on behalf of all persons residing in the United States whose personally identifiable information was compromised in the incident, including all who were sent a notice of the incident. On December 20, 2024, the Court granted the parties’ joint motion to stay proceedings pending the parties’ efforts to resolve the lawsuit through mediation. On March 13, 2025, McCamish and the plaintiffs engaged in mediation, resulting in an in-principle agreement that sets forth the terms of a proposed settlement of the class action lawsuits against McCamish, as well as seven class action lawsuits arising out of the incident that have been filed against McCamish’s customers. On May 9, 2025, McCamish and the plaintiffs entered into a definitive settlement agreement, and the plaintiffs moved for preliminary approval of the settlement. Under the settlement terms, McCamish has agreed to pay $17.5 million (approximately ₹150 crore) into a fund to settle these matters. On July 16, 2025, the Court granted preliminary approval of the settlement. The settlement remains subject to final court approval. If approved, the settlement will resolve all allegations made in the class action lawsuits without admission of any liability. 17
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Government Investigation During the three months ended March 31, 2025, McCamish had recorded an accrual of $17.5 million (approximately ₹150 crore) related to the settlement and had recognized an insurance reimbursement receivable of $17 million (approximately ₹145 crore) which has been offset against the settlement expense of $17.5 million (approximately ₹150 crore) in the Statement of Comprehensive Income. McCamish may incur additional costs including from indemnities or damages/claims, which are indeterminable at this time. Others Apart from the foregoing, the Group is subject to legal proceedings and claims which have arisen in the ordinary course of business. The Group’s management reasonably expects that such ordinary course legal actions, when ultimately concluded and determined, will not have a material and adverse effect on the Group’s results of operations or financial condition. The U.S. Department of Justice (“DOJ”) is conducting an investigation regarding how the Company classified certain H-1B visa-recipient employees working for one of its clients in immigration documents filed with certain U.S. government authorities. The Company is engaged in discussions with the DOJ regarding its ongoing investigation and has commenced its own inquiry regarding the matter. At this stage, the Company is unable to predict the outcome of this matter, including whether such outcome could have a material adverse effect on the Company’s business and results of operations. 18
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2.7 Property, plant and equipment Accounting Policy Building 22-25 years Plant and machinery(1) 5 years Computer equipment 3-5 years Furniture and fixtures 5 years Vehicles 5 years Leasehold improvements Lower of useful life of the asset or lease term (1) Includes solar plant with a useful life of 25 years Impairment The changes in the carrying value of property, plant and equipment for the three months ended June 30, 2025 are as follows: (In ₹ crore) Particulars Land Buildings Plant and machinery Computer equipment Furniture and fixtures Vehicles Total Gross carrying value as at April 1, 2025 1,477 11,721 5,438 9,306 3,300 48 31,290 10 3 71 207 44 1 336 Additions on Business Combinations - - - 3 - - 3 Deletions* - (5) (11) (270) (6) (1) (293) Translation difference - 18 8 32 21 - 79 Gross carrying value as at June 30, 2025 1,487 11,737 5,506 9,278 3,359 48 31,415 Accumulated depreciation as at April 1, 2025 - (5,358) (4,402) (7,013) (2,696) (43) (19,512) Depreciation - (111) (83) (267) (61) (1) (523) Accumulated depreciation on deletions* - 1 10 259 6 1 277 Translation difference - (5) (5) (19) (17) - (46) Accumulated depreciation as at June 30, 2025 - (5,473) (4,480) (7,040) (2,768) (43) (19,804) Capital work-in progress as at April 1, 2025 1,022 Carrying value as at April 1, 2025 1,477 6,363 1,036 2,293 604 5 12,800 Capital work-in progress as at June 30, 2025 1,114 Carrying value as at June 30, 2025 1,487 6,264 1,026 2,238 591 5 12,725 Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by the Management. The charge in respect of periodic depreciation is derived at after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The Group depreciates property, plant and equipment over their estimated useful lives using the straight-line method. The estimated useful lives of assets are as follows: Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end. The useful lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date and the cost of assets not ready to use before such date are disclosed under ‘Capital work-in-progress’. Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Group and the cost of the item can be measured reliably. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset. Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in- use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. If such assets are considered to be impaired, the impairment to be recognized in net profit in the interim condensed consolidated statement of comprehensive income is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in net profit in the consolidated statement of comprehensive income if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated depreciation) had no impairment loss been recognized for the asset in prior years. Additions X10AO 19
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The changes in the carrying value of property, plant and equipment for the three months ended June 30, 2024 are as follows: (In ₹ crore) Particulars Land Buildings Plant and machinery Computer equipment Furniture and fixtures Vehicles Total Gross carrying value as at April 1, 2024 1,430 11,770 5,341 8,611 3,390 45 30,587 Additions - 15 43 178 21 1 258 Additions on Business Combinations - - - 1 - - 1 Deletions* - (38) (22) (164) (61) (1) (286) Translation difference - (4) (1) (9) (4) - (18) Gross carrying value as at June 30, 2024 1,430 11,743 5,361 8,617 3,346 45 30,542 Accumulated depreciation as at April 1, 2024 - (4,921) (4,182) (6,380) (2,692) (42) (18,217) Depreciation - (111) (100) (327) (82) (1) (621) Accumulated depreciation on deletions* - 5 22 163 60 1 251 Translation difference - 1 1 6 4 - 12 Accumulated depreciation as at June 30, 2024 - (5,026) (4,259) (6,538) (2,710) (42) (18,575) Capital work-in progress as at April 1, 2024 448 Carrying value as at April 1, 2024 1,430 6,849 1,159 2,231 698 3 12,818 Capital work-in progress as at June 30, 2024 573 Carrying value as at June 30, 2024 1,430 6,717 1,102 2,079 636 3 12,540 The Group had contractual commitments for capital expenditure primarily comprising of commitments for infrastructure facilities and computer equipment aggregating to ₹1,065 crore and ₹935 crore as at June 30, 2025 and March 31, 2025, respectively. Repairs and maintenance costs are recognized in the interim condensed consolidated statement of comprehensive income when incurred. The aggregate depreciation expense is included in cost of sales in the interim condensed consolidated statement of comprehensive income. Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (“the Rules”), the Company was required to transfer its CSR capital assets installed prior to January 2021. Towards this the Company had incorporated a subsidiary ‘Infosys Green Forum’ (IGF) under Section 8 of the Companies Act, 2013. During the year ended March 31, 2022, the Company had completed the transfer of assets upon obtaining the required approvals from regulatory authorities, as applicable. During fiscal 2024, the application filed by IGF for regularization of the provisional registration was rejected and registration cancelled vide order dated March 26, 2024 by Income Tax Commissioner (Exemption). IGF has filed an appeal before Income Tax Tribunal against the order. * During the three months ended June 30, 2025, certain assets which were not in use having gross book value of ₹247 crore (net book value: Nil) were retired. During the three months ended June 30, 2024, certain assets which were not in use having gross book value of ₹126 crore (net book value: Nil) were retired. 20
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2.8 Leases Accounting Policy The Group as a lessee The Group as a lessor (In ₹ crore) Particulars Land Buildings Vehicles Computers Balance as at April 1, 2025 600 3,348 24 2,339 6,311 Additions(1) - 175 1 367 543 Deletions - (19) - (194) (213) Depreciation (1) (187) (3) (273) (464) Translation difference - 49 2 113 164 Balance as at June 30, 2025 599 3,366 24 2,352 6,341 (1) Net of adjustments on account of modifications For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease. Following are the changes in the carrying value of right-of-use assets for the three months ended June 30, 2025: TotalCategory of ROU asset The Group’s lease asset classes primarily consist of leases for land, buildings and computers. The Group assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether: (1) the contract involves the use of an identified asset (2) the Group has substantially all of the economic benefits from use of the asset through the period of the lease and (3) the Group has the right to direct the use of the asset. The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right-of-use asset if the group changes its assessment of whether it will exercise an extension or a termination option. Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows. When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease. At the date of commencement of the lease, the Group recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised. The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right-of-use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in- use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. Leases for which the group is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. As a lessee, the Group determines the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Group makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Group considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Group’s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. X11AO 21
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(In ₹ crore) Particulars Land Buildings Vehicles Computers Balance as at April 1, 2024 605 3,298 17 2,632 6,552 Additions(1) - 273 3 284 560 Deletions - - - (149) (149) Depreciation (2) (181) (2) (248) (433) Translation difference - (3) (1) (14) (18) Balance as at June 30, 2024 603 3,387 17 2,505 6,512 The following is the break-up of current and non-current lease liabilities as of June 30, 2025 and March 31, 2025: (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Current lease liabilities 2,542 2,455 Non-current lease liabilities 5,943 5,772 Total 8,485 8,227 As at Following are the changes in the carrying value of right-of-use assets for the three months ended June 30, 2024: Category of ROU asset Total The aggregate depreciation expense on ROU assets is included in cost of sales in the interim condensed consolidated statement of comprehensive income. (1) Net of adjustments on account of modifications 22
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2.9 Goodwill and Intangible assets 2.9.1 Goodwill Accounting Policy Impairment Following is a summary of changes in the carrying amount of goodwill: (In ₹ crore) June 30, 2025 March 31, 2025 Carrying value at the beginning 10,106 7,303 Goodwill on acquisitions (Refer to note 2.10) 444 2,593 Translation differences 569 210 Carrying value at the end 11,119 10,106 2.9.2 Intangible assets Accounting Policy Impairment Intangible assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs. If such assets are considered to be impaired, the impairment to be recognized in net profit in the statement of comprehensive income is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in net profit in the statement of comprehensive income if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization) had no impairment loss been recognized for the asset in prior years. Goodwill is tested for impairment on an annual basis and whenever there is an indication that the recoverable amount of a cash generating unit (CGU) is less than its carrying amount. For the impairment test, goodwill is allocated to the CGU or groups of CGU’s which benefit from the synergies of the acquisition and which represents the lowest level at which goodwill is monitored for internal management purposes. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. Impairment occurs when the carrying amount of a CGU including the goodwill, exceeds the estimated recoverable amount of the CGU. The recoverable amount of a CGU is the higher of its fair value less cost to sell and its value-in-use. Value-in-use is the present value of future cash flows expected to be derived from the CGU. Key assumptions in the cash flow projections are prepared based on current economic conditions and includes estimated long term growth rates, weighted average cost of capital and estimated operating margins. Goodwill represents the purchase consideration in excess of the Group's interest in the net fair value of identifiable assets, liabilities and contingent liabilities of the acquired entity. When the net fair value of the identifiable assets, liabilities and contingent liabilities acquired exceeds the purchase consideration, the fair value of net assets acquired is reassessed and the bargain purchase gain is recognized immediately in the net profit in the Statement of Comprehensive Income. Goodwill is measured at cost less accumulated impairment losses. Particulars Research costs are expensed as incurred. Software product development costs are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Group has an intention and ability to complete and use or sell the software and the costs can be measured reliably. The costs which can be capitalized include the cost of material, direct labour, overhead costs that are directly attributable to prepare the asset for its intended use. Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry and known technological advances), and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and useful lives are reviewed periodically including at each financial year end. As at For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the CGUs or groups of CGUs, which are benefited from the synergies of the acquisition. 23
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2.10 Business combinations Accounting policy Acquisition (In ₹ crore) Component Acquiree's carrying amount Fair value adjustments Purchase price allocated Net Assets (1) 116 - 116 Intangible assets: Customer related# - 222 222 Vendor relationship# - 55 55 Brand# - 20 20 - (46) (46) Total 116 251 367 Goodwill 444 Total purchase price 811 Business combinations have been accounted for using the acquisition method under the provisions of IFRS 3 (Revised), Business Combinations. The purchase price in an acquisition is measured at the fair value of the assets transferred, equity instruments issued and liabilities incurred or assumed at the date of acquisition, which is the date on which control is transferred to the Group. The purchase price also includes the fair value of any contingent consideration. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value on the date of acquisition. Contingent consideration is remeasured at fair value at each reporting date and changes in the fair value of the contingent consideration are recognized in the interim condensed Consolidated Statement of Comprehensive Income. The interest of non-controlling shareholders is initially measured either at fair value or at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets. The choice of measurement basis is made on an acquisition-by-acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity of subsidiaries. Business combinations between entities under common control is outside the scope of IFRS 3 (Revised), Business Combinations and is accounted for at carrying value of assets acquired and liabilities assumed. The payments related to options issued by the Group over the non-controlling interests in its subsidiaries are accounted as financial liabilities and initially recognized at the estimated present value of gross obligations. Such options are subsequently measured at fair value in order to reflect the amount payable under the option at the date at which it becomes exercisable. In the event that the option expires unexercised, the liability is derecognized. During the three months ended June 30, 2025 the Group, completed two business combinations by acquiring 100% partnership interests/voting interests in: 1) MRE Consulting Ltd., a leading Energy and business consulting services company, headquartered in Texas, U.S. on April 30, 2025, which is expected to bring newer capabilities for the Group in trading and risk management, especially in the energy sector. 2) The Missing Link Security Pty. Ltd., The Missing Link Security Limited and The Missing Link Automation Pty. Ltd. (collectively known as "The Missing Link"), a leading Cybersecurity service provider headquartered in Australia on April 30, 2025, which is expected to further strengthen the Group's capabilities in the cybersecurity sector and bolster its presence in the fast growing Australian Market. Goodwill amounting to ₹79 crore is expected to be deductible for tax purposes. The provisional purchase price is allocated to assets acquired and liabilities assumed based upon determination of fair values at the date of acquisition as follows: Deferred tax liabilities on intangible assets (1) Includes cash and cash equivalents acquired of ₹102 crore. # The estimated useful life is around 1 year to 7 years The excess of the purchase consideration paid over the fair value of assets acquired has been attributed to goodwill. The primary items that generated this goodwill are the value of the acquired assembled workforce and estimated synergies, neither of which qualify as an intangible asset. Transaction costs that the Group incurs in connection with a business combination such as finder’s fees, legal fees, due diligence fees, and other professional and consulting fees are expensed as incurred. The transaction costs of ₹34 crore related to the acquisition have been included under administrative expenses in the Consolidated Statement of Comprehensive Income for the quarter ended June 30, 2025. The total purchase consideration of ₹811 crore includes upfront cash consideration of ₹741 crore and contingent consideration with an estimated fair value of ₹70 crore as on the date of acquisition. At the acquisition date, the key inputs used in determination of the fair value of contingent consideration are the probabilities assigned towards achievement of financial targets and discount rates ranging from 2% - 3%. The undiscounted value of contingent consideration as of June 30, 2025 was approximately ₹73 crore. Additionally, these acquisitions have retention bonus and management incentives payable to the employees of the acquiree over 2-3 years, subject to their continuous employment with the Group and achievement of financial targets for the respective years. Retention bonus and management incentives are recognized in employee benefit expenses in the Statement of Comprehensive Income over the period of service. Fair value of trade receivables acquired is ₹194 crore as of acquisition date and as of June 30, 2025, the amounts are substantially collected. X13AO 24
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2.11 Employees' Stock Option Plans (ESOP) Accounting Policy The following is the summary of grants during three months ended June 30, 2025 and June 30, 2024: 2025 2024 2015 Plan: RSU Equity settled RSUs Key Management Personnel (KMP) 277,077 295,168 Employees other than KMP 5,000 96,490 282,077 391,658 2015 Plan: Employee Stock Options (ESOPs) Equity settled RSUs Key Management Personnel (KMP) 237,370 - Employees other than KMP 5,412,790 - 5,650,160 - Cash settled RSUs Key Management Personnel (KMP) - - Employees other than KMP 108,180 - 108,180 - Total Grants under 2015 Plan 6,040,417 391,658 2019 Plan: RSU Equity settled RSUs Key Management Personnel (KMP) 66,366 70,699 Employees other than KMP - 6,848 66,366 77,547 Total Grants under 2019 Plan 66,366 77,547 2015 Stock Incentive Compensation Plan (the 2015 Plan): On March 31, 2016, pursuant to the approval by the shareholders through postal ballot, the Board was authorized to introduce, offer, issue and allot share-based incentives to eligible employees of the Company and its subsidiaries under the 2015 Stock Incentive Compensation Plan. The maximum number of shares under the 2015 plan shall not exceed 24,038,883 equity shares (this includes 11,223,576 equity shares which are held by the trust towards the 2011 Plan as at March 31, 2016). These instruments will generally vest over a period of 4 years. The plan numbers mentioned above are further adjusted with the September 2018 bonus issue. The equity settled and cash settled RSUs and stock options would vest generally over a period of 4 years and shall be exercisable within the period as approved by the Nomination and Remuneration Committee (NARC). The exercise price of the RSUs will be equal to the par value of the shares and the exercise price of the stock options would be the market price as on the date of grant. Controlled trust holds 9,098,409 and 9,655,927 shares as at June 30, 2025 and March 31, 2025, respectively under the 2015 plan, out of these shares 200,000 equity shares each have been earmarked for welfare activities of the employees as at June 30, 2025 and March 31, 2025. The Group recognizes compensation expense relating to share-based payments in net profit based on estimated fair-values of the awards on the grant date. The estimated fair value of awards is recognized as an expense in net profit in the interim condensed consolidated statement of comprehensive income on a straight- line basis over the requisite service period for each separately vesting portion of the award as if the award was in-substance, multiple awards with a corresponding increase to share premium. Three months ended June 30, Infosys Expanded Stock Ownership Program 2019 (the 2019 Plan): On June 22, 2019 pursuant to the approval by the shareholders in the Annual General Meeting, the Board has been authorized to introduce, offer, issue and provide share-based incentives to eligible employees of the Company and its subsidiaries under the 2019 Plan. The maximum number of shares under the 2019 plan shall not exceed 50,000,000 equity shares. To implement the 2019 Plan , up to 45,000,000 equity shares may be issued by way of secondary acquisition of shares by the Infosys Expanded Stock Ownership Trust. The Restricted Stock Units (RSUs) granted under the 2019 plan shall vest based on the achievement of defined annual performance parameters as determined by the administrator (Nomination and Remuneration Committee). The performance parameters will be based on a combination of relative Total Shareholder Return (TSR) against selected industry peers and certain broader market domestic and global indices and operating performance metrics of the company as decided by administrator. Each of the above performance parameters will be distinct for the purposes of calculation of quantity of shares to vest based on performance. These instruments will generally vest between a minimum of 1 to maximum of 3 years from the grant date. Particulars X14AO 25
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Notes on grants to KMP: CEO & MD Under the 2015 plan: 2025 2024 Granted to: KMP 17 18 Employees other than KMP 219 193 Total (1) 236 211 (1) Cash settled stock compensation expense included in the above 5 3 The fair value of each equity settled award is estimated on the date of grant using the following assumptions: Particulars Fiscal 2026- Equity Shares- RSU Fiscal 2026- Equity Shares- ESOP Fiscal 2026- ADS-ESOP Fiscal 2025- Equity Shares-RSU Fiscal 2025- ADS-RSU Weighted average share price (₹) / ($ ADS) 1,507 1,554 17.93 1,414 16.87 Exercise price (₹)/ ($ ADS) 5 1,554 17.93 5 0.07 Expected volatility (%) 24-25 25-28 26-30 23-26 23-28 Expected life of the option (years) 1-4 3-7 3-7 1-4 1-4 Expected dividends (%) 2-3 2-3 2-3 2-3 2-3 Risk-free interest rate (%) 6 6 4 7 4-5 Weighted average fair value as on grant date (₹) / ($ ADS) 1,355 390 4.09 1,298 15.45 (in ₹ crore) The break-up of employee stock compensation expense is as follows: The expected life of the RSU/ESOP is estimated based on the vesting term and contractual term of the RSU/ESOP, as well as expected exercise behavior of the employee who receives the RSU/ESOP. The fair value of the awards are estimated using the Black-Scholes Model for time and non-market performance based options and Monte Carlo simulation model is used for TSR based options. The inputs to the model include the share price at date of grant, exercise price, expected volatility, expected dividends, expected term and the risk free rate of interest. Expected volatility during the expected term of the options is based on historical volatility of the observed market prices of the Company's publicly traded equity shares during a period equivalent to the expected term of the options. Expected volatility of the comparative company have been modelled based on historical movements in the market prices of their publicly traded equity shares during a period equivalent to the expected term of the options. Correlation coefficient is calculated between each peer entity and the indices as a whole or between each entity in the peer group. For options granted in Particulars Three months ended June 30, The Board, on April 17, 2025, based on the recommendations of the Nomination and Remuneration Committee, approved performance-based grant of RSUs amounting to ₹10 crore for fiscal 2026 under the 2019 Plan. These RSUs will vest based on achievement of certain performance targets. Accordingly, 66,366 performance based RSU’s were granted effective May 2, 2025. Though the annual time based grants and annual performance equity TSR grant for the remaining employment term ending on March 31, 2027 have not been granted as of June 30, 2025, since the service commencement date precedes the grant date, the company has recorded employment stock compensation expense in accordance with IFRS 2, Share based payments. The grant date for this purpose in accordance with IFRS 2, Share based payments is July 1, 2022. Under the 2019 plan: The Board, on on April 17, 2025, based on the recommendations of the Nomination and Remuneration Committee approved the following grants for fiscal 2026. In accordance with such approval the following grants were made effective May 2, 2025. - 230,621 performance-based RSUs (Annual performance equity grant) of fair value of ₹34.75 crore. These RSUs will vest in line with the employment agreement based on achievement of certain performance targets. - 13,273 performance-based grant of RSUs (Annual performance equity ESG grant) of fair value of ₹2 crore. These RSUs will vest in line with the employment agreement based on achievement of certain environment, social and governance milestones as determined by the Board. - 33,183 performance-based grant of RSUs (Annual performance Equity TSR grant) of fair value of ₹5 crore . These RSUs will vest in line with the employment agreement based on Company’s performance on cumulative relative TSR over the years and as determined by the Board. 26
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2.12 Income Taxes Accounting policy Income tax expense in the consolidated statement of comprehensive income comprises: (In ₹ crore) 2025 2024 Current taxes Domestic taxes 2,318 2,307 Foreign taxes 735 691 3,053 2,998 Deferred taxes Domestic taxes (142) (233) Foreign taxes (95) (118) (237) (351) Income tax expense 2,816 2,647 As at June 30, 2025, claims against the Group not acknowledged as debts from the Income tax authorities amounted to ₹1,976 crore. As at March 31, 2025, claims against the Group not acknowledged as debts from the Income tax authorities amounted to ₹1,933 crore. The amount paid to statutory authorities against the tax claims amounted to ₹4,185 crore and ₹4,199 crore as at June 30, 2025 and March 31, 2025, respectively. The claims against the Group primarily represent demands arising on completion of assessment proceedings under the Income Tax Act, 1961. These claims are on account of issues of disallowance of expenditure towards software being held as capital in nature, payments made to Associated Enterprises held as liable for withholding of taxes, among others. These matters are pending before various Income Tax Authorities and the Management including its tax advisors expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Group's financial position and results of operations. The Company’s Advanced Pricing Arrangement (APA) with the Internal Revenue Service (IRS) for US branch income tax expired in March 2021. The Company has applied for renewal of APA and currently the US taxable income is based on the Company’s best estimate determined based on the expected value method. Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the interim condensed Consolidated Statement of Comprehensive income except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity or other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. Deferred income taxes are not provided on the undistributed earnings of subsidiaries and branches where it is expected that the earnings of the subsidiary or branch will not be distributed in the foreseeable future. The Group offsets current tax assets and current tax liabilities; deferred tax assets and deferred tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full financial year. Tax benefits of deductions earned on exercise of employee share options in excess of compensation charged to income are credited to equity. Income tax expense for the three months ended June 30, 2025 and June 30, 2024 includes provisions (net of reversals) of ₹116 crore and provisions (net of reversals) of ₹60 crore, respectively. These provisions and reversals pertaining to prior periods are primarily on account of adjudication of certain disputed matters, upon filing of tax return and completion of assessments, across various jurisdictions. Particulars Three months ended June 30, Deferred income tax for the three months ended June 30, 2025 and June 30, 2024 substantially relates to origination and reversal of temporary differences. X15AO 27
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2.13 Earnings per equity share Accounting Policy 2.14 Related party transactions . . . . . . . Transactions with key management personnel The table below describes the compensation to key management personnel which comprise directors and executive officers: (In ₹ crore) Particulars 2025 2024 30 28 4 4 Total 34 32 On April 30, 2025, Infosys Nova Holdings LLC , a wholly owned subsidiary of Infosys Limited, acquired 98.21% of partnership interests in MRE Consulting Ltd along with its subsidiary MRE Technology Services, LLC. The remaining 1.79% was acquired by Infosys Energy Consulting Services LLC , a Wholly-owned subsidiary of Infosys Nova Holdings LLC. On April 30, 2025, Infosys Australia Technology Service Pty Ltd, a wholly owned subsidiary of Infosys Singapore Pte. Limited, acquired 100% of voting interests in The Missing Link Automation Pty Ltd, The Missing Link Network Integration Pty Ltd and The Missing Link Security Pty Ltd along with its subsidiary The Missing Link Security Ltd On May 13, 2025, Infosys Singapore Pte Ltd diluted 2% stake of HPUS Co., Ltd to Mitsubishi Heavy Industries, Ltd. (1) For the three months ended June 30, 2025 and June 30, 2024, includes a charge of ₹17 crore and ₹18 crore respectively, towards employee stock compensation expense. (Refer to note 2.11). (2) Does not include post-employment benefits and other long-term benefits based on actuarial valuation as these are done for the Company as a whole. Three months ended June 30 Salaries and other employee benefits to whole-time directors and executive officers(1)(2) Commission and other benefits to non-executive/ independent directors in-tech Automotive Engineering de. R L de. C V, a wholly-owned subsidiary of in-tech GmbH has been liquidated effective May 07, 2025. Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as at the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors. Refer to note 2.14 "Related party transactions" in the Company’s 2025 Consolidated financial statements under IFRS in Indian rupee for the full names and other details of the Company's subsidiaries and controlled trusts. Changes in Subsidiaries Infosys Australia Technology Service Pty Ltd, a wholly-owned subsidiary of Infosys Singapore Pte. Limited was incorporated on April 23, 2025. During the three months ended June 30, 2025, the following are the changes in the subsidiaries: Infosys Energy Consulting Services LLC , a wholly-owned subsidiary of Infosys Nova Holdings LLC was incorporated on April 16, 2025. Infosys Saudi Arabia LLC, a wholly-owned subsidiary of Infosys Limited was incorporated on April 21, 2025. 28
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2.15 Segment reporting 2.15.1 Business segments (In ₹ crore) Particulars Financial Services(1) Manufacturing Energy, Utilities, Resources and Services Retail(2) Communication(3 ) Hi-Tech Life Sciences(4) All other segments(5) Total Revenue 11,796 6,804 5,742 5,651 5,097 3,296 2,745 1,148 42,279 10,816 5,778 5,220 5,428 4,744 3,147 2,866 1,316 39,315 Identifiable operating expenses 6,662 4,274 3,281 2,914 3,332 1,962 1,710 664 24,799 6,088 3,783 2,715 2,697 3,114 1,783 1,757 751 22,688 Allocated expenses 2,161 1,114 1,024 1,046 885 566 481 260 7,537 2,116 989 948 980 834 550 498 275 7,190 Segment Profit 2,973 1,416 1,437 1,691 880 768 554 224 9,943 2,612 1,006 1,557 1,751 796 814 611 290 9,437 Unallocable expenses 1,140 1,149 Operating profit 8,803 8,288 Other income, net 1,042 838 Finance cost 105 105 Profit before income taxes 9,740 9,021 Income tax expense 2,816 2,647 Net profit 6,924 6,374 Depreciation and amortization 1,140 1,149 Non-cash expenses other than depreciation and amortization - - (1) Financial Services include enterprises in Financial Services and Insurance (2) Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics (3) Communication includes enterprises in Communication, Telecom OEM and Media (4) Life Sciences includes enterprises in Life sciences and Health care (5) Others include operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services 2.15.2 Significant clients No client individually accounted for more than 10% of the revenues for the three months ended June 30, 2025 and June 30, 2024, respectively. Three months ended June 30, 2025 and June 30, 2024 IFRS 8 Operating Segments establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Group's operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance. The Chief Operating Decision Maker (CODM) evaluates the Group's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the accounting policies. Business segments of the Group are primarily enterprises in Financial Services and Insurance, enterprises in Manufacturing, enterprises in Retail, Consumer Packaged Goods and Logistics, enterprises in the Energy, Utilities, Resources and Services, enterprises in Communication, Telecom OEM and Media, enterprises in Hi-Tech, enterprises in Life Sciences and Healthcare and all other segments. The Financial services reportable segments has been aggregated to include the Financial Services operating segment and Finacle operating segment because of the similarity of the economic characteristics. All other segments represents the operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services. Assets and liabilities used in the Group's business are not identified to any of the reportable segments, as these are used interchangeably between segments. The Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous. Disclosure of revenue by geographic locations is given in note 2.16 Revenue from operations. Revenue and identifiable operating expenses in relation to segments are categorized based on items that are individually identifiable to that segment. Revenue for 'all other segments' represents revenue generated by Infosys Public Services and revenue generated from customers located in India, Japan and China and other enterprises in Public services. Allocated expenses of segments include expenses incurred for rendering services from the Group's offshore software development centers and on-site expenses, which are categorized in relation to the associated efforts of the segment. Certain expenses such as depreciation and amortization, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying assets are used interchangeably. The Management believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and adjusted against the total income of the Group. Business segment revenue information is collated based on individual customers invoiced or in relation to which the revenue is otherwise recognized. X17AO 29
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2.16 Revenue from Operations Accounting Policy Revenue from licenses where the customer obtains a “right to use” the licenses is recognized at the time the license is made available to the customer. Revenue from licenses where the customer obtains a “right to access” is recognized over the access period. Arrangements to deliver software products generally have three elements: license, implementation and Annual Technical Services (ATS). When implementation services are provided in conjunction with the licensing arrangement and the license and implementation have been identified as two distinct separate performance obligations, the transaction price for such contracts are allocated to each performance obligation of the contract based on their relative standalone selling prices. In the absence of standalone selling price for implementation, the Group uses the expected cost plus margin approach in estimating the standalone selling price. Where the license is required to be substantially customized as part of the implementation service the entire arrangement fee for license and implementation is considered to be a single performance obligation and the revenue is recognized using the percentage-of-completion method as the implementation is performed. Revenue from client training, support and other services arising due to the sale of software products is recognized as the performance obligations are satisfied. ATS revenue is recognized ratably on a straight line basis over the period in which the services are rendered. Contracts with customers includes subcontractor services or third-party vendor equipment or software in certain integrated services arrangements. In these types of arrangements, revenue from sales of third-party vendor products or services is recorded net of costs when the Group is acting as an agent between the customer and the vendor, and gross when the Group is the principal for the transaction. In doing so, the Group first evaluates whether it obtains control of the specified goods or services before they are transferred to the customer. The Group considers whether it is primarily responsible for fulfilling the promise to provide the specified goods or services, inventory risk, pricing discretion and other factors to determine whether it controls the specified goods or services and therefore, is acting as a principal or an agent. The Group’s contracts may include variable consideration including rebates, volume discounts and penalties. The Group includes variable consideration as part of transaction price when there is a basis to reasonably estimate the amount of the variable consideration and when it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Revenue on time-and-material and unit of work based contracts, are recognized as the related services are performed. Fixed price maintenance revenue is recognized ratably either on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period or ratably using a percentage of completion method when the pattern of benefits from the services rendered to the customer and Group’s costs to fulfil the contract is not even through the period of contract because the services are generally discrete in nature and not repetitive. Revenue from other fixed-price, fixed-timeframe contracts, where the performance obligations are satisfied over time is recognized using the percentage-of-completion method. Efforts or costs expended are used to determine progress towards completion as there is a direct relationship between input and productivity. Progress towards completion is measured as the ratio of costs or efforts incurred to date (representing work performed) to the estimated total costs or efforts. Estimates of transaction price and total costs or efforts are continuously monitored over the term of the contracts and are recognized in net profit in the period when these estimates change or when the estimates are revised. Revenues and the estimated total costs or efforts are subject to revision as the contract progresses. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract. The billing schedules agreed with customers include periodic performance based billing and / or milestone based progress billings. Revenues in excess of billing are classified as unbilled revenue while billing in excess of revenues are classified as contract liabilities (which we refer to as unearned revenues). In arrangements for software development and related services and maintenance services, by applying the revenue recognition criteria for each distinct performance obligation, the arrangements with customers generally meet the criteria for considering software development and related services as distinct performance obligations. For allocating the transaction price, the Group measures the revenue in respect of each performance obligation of a contract at its relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone selling price. In cases where the Group is unable to determine the standalone selling price, the Group uses the expected cost plus margin approach in estimating the standalone selling price. For software development and related services, the performance obligations are satisfied as and when the services are rendered since the customer generally obtains control of the work as it progresses. The Group derives revenues primarily from IT services comprising software development and related services, cloud and infrastructure services, maintenance, consulting and package implementation, licensing of software products and platforms across the Group’s core and digital offerings (together called as “software related services”) and business process management services. Contracts with customers are either on a time-and-material, unit of work, fixed-price or on a fixed-time frame basis. The Group assesses the services promised in a contract and identifies distinct performance obligations in the contract. The Group allocates the transaction price to each distinct performance obligation based on the relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone selling price. In the absence of such evidence, the primary method used to estimate standalone selling price is the expected cost plus a margin, under which the Group estimates the cost of satisfying the performance obligation and then adds an appropriate margin based on similar services. Revenues from customer contracts are considered for recognition and measurement when the contract has been approved in writing by the parties, to the contract, the parties to contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable. Revenue is recognized upon transfer of control of promised products or services (“performance obligations”) to customers in an amount that reflects the consideration the Group has received or expects to receive in exchange for these products or services (“transaction price”). When there is uncertainty as to collectability, revenue recognition is postponed until such uncertainty is resolved. Certain cloud and infrastructure services contracts include multiple elements which may be subject to other specific accounting guidance, such as leasing guidance. These contracts are accounted in accordance with such specific accounting guidance. In such arrangements where the Group is able to determine that hardware and services are distinct performance obligations, it allocates the consideration to these performance obligations on a relative standalone selling price basis. In the absence of standalone selling price, the Group uses the expected cost-plus margin approach in estimating the standalone selling price. When such arrangements are considered as a single performance obligation, revenue is recognized over the period and measure of progress is determined based on promise in the contract. A contract modification is a change in the scope or price or both of a contract that is approved by the parties to the contract. A contract modification that results in the addition of distinct performance obligations are accounted for either as a separate contract if the additional services are priced at the standalone selling price or as a termination of the existing contract and creation of a new contract if they are not priced at the standalone selling price. If the modification does not result in a distinct performance obligation, it is accounted for as part of the existing contract on a cumulative catch-up basis. X18AO 30
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Revenues for the three months ended June 30, 2025 and June 30, 2024 is as follows: (In ₹ crore) Particulars 2025 2024 Revenue from software services 40,331 37,496 Revenue from products and platforms 1,948 1,819 Total revenue from operations 42,279 39,315 Products & platforms Disaggregated revenue information For the three months ended June 30, 2025 and June 30, 2024 (In ₹ crore) 2025 2024 Revenues by Geography * North America 23,867 23,143 Europe 13,337 11,186 India 1,219 1,227 Rest of the world 3,856 3,759 Total 42,279 39,315 * Geographical revenues is based on the domicile of customer. Trade Receivables and Contract Balances 2.17 Unbilled Revenue (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Unbilled financial asset (1) 10,598 10,214 Unbilled non financial asset (2) 5,265 4,869 Total 15,863 15,083 As at (1) Right to consideration is unconditional and is due only after a passage of time. The timing of revenue recognition, billings and cash collections results in receivables, unbilled revenue, and unearned revenue on the Group’s Consolidated Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly or quarterly) or upon achievement of contractual milestones. Invoicing in excess of earnings are classified as unearned revenue. Invoicing to the clients for other fixed price contracts is based on milestones as defined in the contract and therefore the timing of revenue recognition is different from the timing of invoicing to the customers. Therefore, unbilled revenues for other fixed price contracts (contract asset) are classified as non- financial asset because the right to consideration is dependent on completion of contractual milestones. (2) Right to consideration is dependent on completion of contractual milestones. Revenue disaggregation by business segments has been included in segment information (Refer note 2.15). The table below presents disaggregated revenues from contracts with customers by geography and contract type. The Group believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors. Three months ended June 30, Trade receivables and unbilled revenues are presented net of impairment in the consolidated statement of balance sheet. The incremental costs of obtaining a contract (i.e., costs that would not have been incurred if the contract had not been obtained) are recognized as an asset if the Group expects to recover them. Certain eligible, nonrecurring costs (e.g. set-up or transition or transformation costs) that do not represent a separate performance obligation are recognized as an asset when such costs (a) relate directly to the contract; (b) generate or enhance resources of the Group that will be used in satisfying the performance obligation in the future; and (c) are expected to be recovered. Capitalized contract costs relating to upfront payments to customers are amortized to revenue and other capitalized costs are amortized to cost of sales over the respective contract life on a systematic basis consistent with the transfer of goods or services to customer to which the asset relates. Capitalized costs are monitored regularly for impairment. Impairment losses are recorded when present value of projected remaining operating cash flows is not sufficient to recover the carrying amount of the capitalized costs. The Group presents revenues net of indirect taxes in its interim condensed Consolidated Statement of Comprehensive Income. The Group’s Receivables are rights to consideration that are unconditional. Unbilled revenues comprising revenues in excess of billings from time and material contracts and fixed price maintenance contracts are classified as financial asset when the right to consideration is unconditional and is due only after a passage of time. Three months ended June 30, The percentage of revenue from fixed-price contracts for each of the three months ended June 30, 2025 and June 30, 2024 is 54%. Particulars The Group also derives revenues from the sale of products and platforms like Finacle – core banking solution, Edge Suite of products, Panaya platform, Stater digital platform and Infosys McCamish – insurance platform. 31
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2.18 Equity Accounting policy Ordinary Shares Treasury Shares Description of reserves Retained earnings Share premium Other Reserve Capital Redemption Reserve Cash flow hedge reserve Other components of equity 2.18.1 Voting 2.18.2 Liquidation 2.18.3 Share options 2.18.4 Share capital and share premium Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares, share options and buyback are recognized as a deduction from equity, net of any tax effects. When any entity within the Group purchases the company's ordinary shares, the consideration paid including any directly attributable incremental cost is presented as a deduction from total equity, until they are cancelled, sold or reissued. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is transferred to/from Share premium. The amount received in excess of the par value of equity shares has been classified as share premium. Additionally, share-based compensation recognized in net profit in the condensed consolidated statement of comprehensive income is credited to share premium. Amounts have been utilized for bonus issue and share buyback from share premium account. Retained earnings represent the amount of accumulated earnings of the Group. Other components of equity include currency translation, re-measurement of net defined benefit liability/asset, fair value changes of equity instruments fair valued through other comprehensive income, changes on fair valuation of investments, net of taxes. The Special Economic Zone Re-investment reserve has been created out of the profit of the eligible SEZ unit in terms of the provisions of Sec 10AA (1)(ii) of Income Tax Act, 1961. The reserve should be utilized by the Company for acquiring new plant and machinery for the purpose of its business in terms of the provisions of the Sec 10AA (2) of the Income Tax Act, 1961. In accordance with section 69 of the Indian Companies Act, 2013, the Company creates capital redemption reserve equal to the nominal value of the shares bought back as an appropriation from general reserve / retained earnings. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedging reserve. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the net profit in the interim condensed consolidated Statement of Comprehensive Income upon the occurrence of the related forecasted transaction. There are no voting, dividend or liquidation rights to the holders of options issued under the company's share option plans. The Company has only one class of shares referred to as equity shares having a par value of ₹5/- each. 9,098,409 shares and 9,655,927 shares were held by controlled trust, as at June 30, 2025 and March 31, 2025, respectively. In the event of liquidation of the company, the holders of shares shall be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently, other than the amounts held by irrevocable controlled trusts. The amount distributed will be in proportion to the number of equity shares held by the shareholders. For irrevocable controlled trusts, the corpus would be settled in favor of the beneficiaries. Each holder of equity shares is entitled to one vote per share. The equity shares represented by American Depositary Shares (ADS) carry similar rights to voting and dividends as the other equity shares. Each ADS represents one underlying equity share. X22AO 32
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Dividend (In ₹) 2025 2024 Final dividend for fiscal 2025 22.00 - Special dividend for fiscal 2024 - 8.00 Final dividend for fiscal 2024 - 20.00 Effective fiscal 2025, the Company expects to continue its policy of returning approximately 85% of the free cash flow cumulatively over a 5- year period through a combination of semi-annual dividends and/or share buyback/ special dividends subject to applicable laws and requisite approvals, if any. Under this policy, the Company expects to progressively increase its annual dividend per share (excluding special dividend if any). Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under IFRS. Dividend and buyback include applicable taxes. The final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company's Board of Directors. Income tax consequences of dividends on financial instruments classified as equity will be recognized according to where the entity originally recognized those past transactions or events that generated distributable profits. 2.18.5 Capital allocation policy The Board of Directors in their meeting held on April 17, 2025 recommended a final dividend of ₹22/- per equity share for the financial year ended March 31, 2025. The same was approved by the shareholders at the Annual General Meeting (AGM) of the Company held on June 25, 2025 which resulted in a net cash outflow of ₹9,119 crore, excluding dividend paid on treasury shares. The final dividend was paid on June 30, 2025. The Company’s objective when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares or buy back issued shares. As of June 30, 2025, the Company has only one class of equity shares and has no debt. Consequent to the above capital structure there are no externally imposed capital requirements. The amount of per share dividend recognized as distribution to equity shareholders is as follows: Particulars Three months ended June 30, The Company declares and pays dividends in Indian rupees. Companies are required to pay / distribute dividend after deducting applicable taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates. 33
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2.19 Break-up of expenses and other income, net Accounting policy Gratuity and Pensions Provident fund Superannuation Compensated absences In respect of Indian subsidiaries, eligible employees receive benefits from a provident fund, which is a defined contribution plan. Both the eligible employee and the respective companies make monthly contributions to this provident fund plan equal to a specified percentage of the covered employee's salary. Amounts collected under the provident fund plan are deposited in a government administered provident fund. The Companies have no further obligation to the plan beyond its monthly contributions. Certain employees of Infosys, Infosys BPM and EdgeVerve are participants in a defined contribution plan. The Group has no further obligations to the plan beyond its monthly contributions which are periodically contributed to a trust fund, the corpus of which is invested with the Life Insurance Corporation of India. The Group has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an external actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non- accumulating compensated absences is recognized in the period in which the absences occur. The Group operates defined benefit pension plan in certain overseas jurisdictions, in accordance with the local laws. These plans are managed by third party fund managers. The plans provide for periodic payouts after retirement and/or a lumpsum payment as set out in rules of each fund and includes death and disability benefits. The defined benefit plans require contributions which are based on a percentage of salary that varies depending on the age of the respective employees. The Group provides for gratuity, a defined benefit retirement plan ('the Gratuity Plan') covering eligible employees majorly of Infosys and its Indian subsidiaries. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment with the Group. The Company contributes Gratuity liabilities to the Infosys Limited Employees' Gratuity Fund Trust (the Trust). In case of Infosys BPM and EdgeVerve, contributions are made to the Infosys BPM Employees' Gratuity Fund Trust and EdgeVerve Systems Limited Employees' Gratuity Fund Trust, respectively. Trustees administer contributions made to the Trusts and contributions are invested in a scheme with the Life Insurance Corporation of India as permitted by Indian law. Liabilities with regard to these defined benefit plans are determined by actuarial valuation, performed by an external actuary, at each Balance Sheet date using the projected unit credit method. These defined benefit plans expose the Group to actuarial risks, such as longevity risk, interest rate risk and market risk. The Group recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability / (asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligation is recognized in other comprehensive income. The effect of any plan amendments is recognized in net profit in the Consolidated Statement of Comprehensive Income. Eligible employees of Infosys receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee's salary. The Company contributes a portion to the Infosys Limited Employees' Provident Fund Trust. The trust invests in specific designated instruments as permitted by Indian law. The remaining portion is contributed to the government administered pension fund. The rate at which the annual interest is payable to the beneficiaries by the trust is being administered by the Government of India. The Company has an obligation to make good the shortfall, if any, between the return from the investments of the trust and the notified interest rate. X20AOX20AO 34
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Other income, net Accounting policy Operating Profits The Group recognizes government grants only when there is reasonable assurance that the conditions attached to them will be complied with, and the grants will be received. Government grants related to assets are treated as deferred income and are recognized in the net profit in the statement of comprehensive income on a systematic and rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in the statement of comprehensive income over the periods necessary to match them with the related costs which they are intended to compensate. Operating profit of the Group is computed considering the revenues, net of cost of sales, selling and marketing expenses and administrative expenses. Other income is comprised primarily of interest income, dividend income, gain/loss on investment and exchange gain/loss on forward and options contracts and on translation of foreign currency assets and liabilities. Interest income is recognized using the effective interest method. Dividend income is recognized when the right to receive payment is established. The functional currency of Infosys, its Indian subsidiaries and controlled trusts is the Indian rupee. The functional currencies for foreign subsidiaries are their respective local currencies. These financial statements are presented in Indian rupees (rounded off to crore; one crore equals ten million). Foreign-currency denominated monetary assets and liabilities are translated into the relevant functional currency at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are recognized in the interim condensed Consolidated Statement of Comprehensive Income and reported within exchange gains/ (losses) on translation of assets and liabilities, net, except when deferred in Other Comprehensive Income as qualifying cash flow hedges. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. The related revenue and expense are recognized using the same exchange rate. Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled. Revenue, expense and cash-flow items denominated in foreign currencies are translated into the relevant functional currencies using the exchange rate in effect on the date of the transaction. The translation of financial statements of the foreign subsidiaries to the presentation currency is performed for assets and liabilities using the exchange rate in effect at the Balance Sheet date and for revenue, expense and cash-flow items using the average exchange rate for the respective periods. The gains or losses resulting from such translation are included in currency translation reserves under other components of equity. When a subsidiary is disposed off, in full, the relevant amount is transferred to net profit in the statement of comprehensive income. However when a change in the parent's ownership does not result in loss of control of a subsidiary, such changes are recorded through equity. Foreign currency Functional currency Transactions and translations Government grants Other Comprehensive Income, net of taxes includes translation differences on non-monetary financial assets measured at fair value at the reporting date, such as equities classified as financial instruments and measured at fair value through other comprehensive income (FVOCI). Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the exchange rate in effect at the Balance Sheet date. 35
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The table below provides details of break-up of expenses: Cost of sales (In ₹ crore) 2025 2024 Employee benefit costs 20,446 18,823 Depreciation and amortization 1,140 1,149 Travelling costs 323 323 Cost of technical sub-contractors 3,497 3,168 Cost of software packages for own use 637 559 Third party items bought for service delivery to clients 3,071 2,867 Consultancy and professional charges 5 109 Communication costs 68 71 Repairs and maintenance 146 123 Provision for post-sales client support (177) (108) Others 68 93 Total 29,224 27,177 Selling and marketing expenses (In ₹ crore) 2025 2024 Employee benefit costs 1,606 1,416 Travelling costs 130 102 Branding and marketing 386 350 Communication costs 2 3 Consultancy and professional charges 53 34 Others 31 32 Total 2,208 1,937 Administrative expenses (In ₹ crore) 2025 2024 Employee benefit costs 795 695 Consultancy and professional charges 406 302 Repairs and maintenance 263 258 Power and fuel 54 63 Communication costs 74 73 Travelling costs 63 53 Impairment loss recognized/(reversed) under expected credit loss model 34 (3) Rates and taxes 87 117 Insurance charges 78 73 Commission to non-whole time directors 4 4 Contribution towards Corporate Social Responsibility 117 171 Others 69 107 Total 2,044 1,913 Other income for the three months ended June 30, 2025 and June 30, 2024 is as follows: (In ₹ crore) 2025 2024 489 337 332 328 77 108 Gain/(loss) on investments carried at fair value through other comprehensive income (2) - Gain/(loss) on investments carried at amortized cost 24 - (672) 34 743 3 51 28 1,042 838 for and on behalf of the Board of Directors of Infosys Limited Nandan M. Nilekani Salil Parekh Bobby Parikh Chairman Chief Executive Officer Director and Managing Director Jayesh Sanghrajka A.G.S. Manikantha Chief Financial Officer Company Secretary Bengaluru July 23, 2025 Particulars Three months ended June 30, Particulars Three months ended June 30, Particulars Three months ended June 30, Total Three months ended June 30, Exchange gains / (losses) on forward and options contracts Exchange gains / (losses) on translation of other assets and liabilities Others Interest income on financial assets carried at amortized cost Gain/(loss) on investments carried at fair value through profit or loss Particulars Interest income on financial assets carried at fair value through other comprehensive income 36
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Index Page No. Condensed Balance Sheet……………………………………………………………………………………………………………1 Condensed Statement of Profit and Loss………………………………………………………………………………………….. 2 Condensed Statement of Changes in Equity………………………………………………………………………………………..3 Condensed Statement of Cash Flows…………………………………………………………………………………………………..5 Overview and Notes to the Interim Condensed Standalone Financial Statements 1. Overview 1.1 Company overview ……………………………………………………………………………………………………………7 1.2 Basis of preparation of financial statements ……………………………………………………………………………………………………………7 1.3 Use of estimates and judgments……………………………………………………………………………………………………………7 1.4 Critical accounting estimates and judgements……………………………………………………………………………………………………………7 2. Notes to the Interim Condensed Financial Statements 2.1 Property, plant and equipment……………………………………………………………………………………………………………9 2.2 Goodwill and intangible assets………………………………………………………………………………………… 10 2.3 Leases……………………………………………………………………………………………………………………….11 2.4 Investments………………………………………………………………………………………………………………..12 2.5 Loans………………………………………………………………………………………………………………………...14 2.6 Other financial assets………………………………………………………………………………………………………….14 2.7 Trade Receivables ………………………………………………………………………………………………………….14 2.8 Cash and cash equivalents………………………………………………………………………………………………………….15 2.9 Other assets……………………………………………………………………………………………………………… 15 2.10 Financial instruments………………………………………………………………………………………………………….16 2.11 Equity……………………………………………………………………………………………………………………..19 2.12 Other financial liabilities………………………………………………………………………………………………………….22 2.13 Trade payables…………………………………………………………………………………………………………. 22 2.14 Other liabilities…………………………………………………………………………………………………………. 22 2.15 Provisions………………………………………………………………………………………………………………. 23 2.16 Income taxes……………………………………………………………………………………………………………. 23 2.17 Revenue from operations………………………………………………………………………………………………………….24 2.18 Other income, net………………………………………………………………………………………………………….26 2.19 Expenses……………………………………………………………………………………………………………….. 27 2.20 Earnings per equity share………………………………………………………………………………………………………….28 2.21 Contingent liabilities and commitments………………………………………………………………………………………………………….28 2.22 Related party transactions………………………………………………………………………………………………………….28 2.23 Segment Reporting………………………………………………………………………………………………………….29 INFOSYS LIMITED Condensed Standalone Financial Statements under Indian Accounting Standards (Ind AS) for the three months ended June 30, 2025
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INFOSYS LIMITED (In ₹ crore) Note No. June 30, 2025 March 31, 2025 Property, plant and equipment 2.1 9,868 10,070 Right-of-use assets 2.3 3,201 3,078 Capital work-in-progress 891 778 Goodwill 2.2 211 211 Other intangible assets - - Financial assets Investments 2.4 27,829 27,371 Loans 2.5 12 26 Other financial assets 2.6 2,404 2,350 Deferred tax assets (net) 2.16 601 497 Income tax assets (net) 2.16 1,172 1,164 Other non-current assets 2.9 2,254 2,223 48,443 47,768 Current assets Financial assets Investments 2.4 5,294 11,147 Trade receivables 2.7 27,751 26,413 Cash and cash equivalents 2.8 16,556 14,265 Loans 2.5 195 207 Other financial assets 2.6 13,179 12,569 Income tax assets (net) 2.16 2,949 2,949 Other current assets 2.9 9,329 9,618 75,253 77,168 123,696 124,936 Equity Equity share capital 2.11 2,077 2,076 Other equity 82,566 85,256 Total equity 84,643 87,332 LIABILITIES Non-current liabilities Financial liabilities Lease liabilities 2.3 2,941 2,694 Other financial liabilities 2.12 1,947 1,991 Deferred tax liabilities (net) 979 1,062 Other non-current liabilities 2.14 99 95 5,966 5,842 Current liabilities Financial liabilities Lease liabilities 2.3 830 765 Trade payables 2.13 Total outstanding dues of micro enterprises and small enterprises 4 8 Total outstanding dues of creditors other than micro enterprises and small enterprises 2,608 2,720 Other financial liabilities 2.12 14,156 14,101 Other current liabilities 2.14 9,312 9,159 Provisions 2.15 888 993 Income tax liabilities (net) 5,289 4,016 33,087 31,762 Total equity and liabilities 123,696 124,936 The accompanying notes form an integral part of the interim condensed standalone financial statements. As per our report of even date attached for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm's Registration No: 117366W/W-100018 Vikas Bagaria Nandan M. Nilekani Salil Parekh Bobby Parikh Partner Chairman Chief Executive Officer Director Membership No. 060408 DIN: 00041245 and Managing Director DIN: 00019437 DIN: 01876159 Jayesh Sanghrajka A.G.S. Manikantha Bengaluru Chief Financial Officer Company Secretary July 23, 2025 Membership No. A21918 Non-current assets Condensed Balance Sheet as at ASSETS Total assets Total current liabilities EQUITY AND LIABILITIES Total non-current assets Total non - current liabilities Total current assets 1
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INFOSYS LIMITED (In ₹ crore except equity share and per equity share data) Condensed Statement of Profit and Loss for the Note No. 2025 2024 Revenue from operations 2.17 35,275 33,283 Other income, net 2.18 882 721 Total income 36,157 34,004 Expenses Employee benefit expenses 2.19 17,673 16,495 Cost of technical sub-contractors 5,208 4,831 Travel expenses 392 371 Cost of software packages and others 2.19 2,217 2,117 Communication expenses 99 105 Consultancy and professional charges 392 266 Depreciation and amortization expenses 613 698 Finance cost 55 59 Other expenses 2.19 848 934 Total expenses 27,497 25,876 Profit before tax 8,660 8,128 Tax expense: Current tax 2.16 2,761 2,686 Deferred tax 2.16 (215) (326) Profit for the period 6,114 5,768 Other comprehensive income Items that will not be reclassified subsequently to profit or loss Remeasurement of the net defined benefit liability/asset, net (61) 19 Equity instruments through other comprehensive income, net 35 14 Items that will be reclassified subsequently to profit or loss Fair value changes on derivatives designated as cash flow hedge, net 6 (3) Fair value changes on investments, net 122 36 Total other comprehensive income/ (loss), net of tax 102 66 Total comprehensive income for the period 6,216 5,834 Earnings per equity share Equity shares of par value ₹5/- each Basic (in ₹ per share) 14.72 13.90 Diluted (in ₹ per share) 14.70 13.87 Basic (in shares) 2.20 4,153,443,006 4,151,073,773 Diluted (in shares) 2.20 4,158,576,942 4,157,355,048 The accompanying notes form an integral part of the interim condensed standalone financial statements. As per our report of even date attached for Deloitte Haskins & Sells LLP Chartered Accountants for and on behalf of the Board of Directors of Infosys Limited Firm's Registration No: 117366W/W-100018 Vikas Bagaria Nandan M. Nilekani Salil Parekh Bobby Parikh Partner Chairman Chief Executive Officer Director Membership No. 060408 DIN: 00041245 and Managing Director DIN: 00019437 DIN: 01876159 Jayesh Sanghrajka A.G.S. Manikantha Bengaluru Chief Financial Officer Company Secretary July 23, 2025 Membership No. A21918 Weighted average equity shares used in computing earnings per equity share Three months ended June 30, 2
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INFOSYS LIMITED Condensed Statement of Changes in Equity (In ₹ crore) Particulars Capital reserve Other reserves (2) Balance as at April 1, 2024 2,075 54 2,862 169 580 62,551 162 913 11,787 279 6 (262) 81,176 Changes in equity for the three months ended June 30, 2024 Profit for the period - - - - - 5,768 - - - - - - 5,768 Remeasurement of the net defined benefit liability/asset, net* - - - - - - - - - - - 19 19 Equity instruments through other comprehensive income, net* - - - - - - - - - 14 - - 14 Fair value changes on derivatives designated as cash flow hedge, net* - - - - - - - - - - (3) - (3) Fair value changes on investments, net* - - - - - - - - - - - 36 36 Total comprehensive income for the period - - - - - 5,768 - - - 14 (3) 55 5,834 Transferred from Special Economic Zone Re-investment reserve on utilization - - - - - 95 - - (95) - - - - Transferred from Special Economic Zone Re-investment reserve to retained earnings - - - - - 247 - - (247) - - - - Transferred on account of exercise of stock options (Refer to note 2.11) - - - - 221 - - (221) - - - - - Transferred on account of options not exercised - - - - - - 18 (18) - - - - - Shares issued on exercise of employee stock options (Refer to note 2.11) 1 - - - 1 - - - - - - - 2 Employee stock compensation expense (Refer to note 2.11) - - - - - - - 208 - - - - 208 Income tax benefit arising on exercise of stock options - - - - - - - 2 - - - - 2 Reserves on common control transaction - - - - - - - - - - - - - Dividends - - - - - (11,625) - - - - - - (11,625) Balance as at June 30, 2024 2,076 54 2,862 169 802 57,036 180 884 11,445 293 3 (207) 75,597 Equity Share Capital Other Equity Other comprehensive income Special Economic Zone Re- investment reserve (1) Capital redemption reserve Securities Premium Capital reserve Retained earnings Total equity attributable to equity holders of the Company Effective portion of Cash flow hedges Share Options Outstanding Account General reserve Other items of other comprehensive income / (loss) Equity Instruments through other comprehensive income Reserves & Surplus 3
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INFOSYS LIMITED Condensed Statement of Changes in Equity (contd.) (In ₹ crore) Particulars Capital reserve Other reserves (2) Balance as at April 1, 2025 2,076 54 2,862 169 1,054 71,520 359 1,069 8,041 298 (18) (152) 87,332 Changes in equity for the three months ended June 30, 2025 Profit for the period - - - - - 6,114 - - - - - - 6,114 Remeasurement of the net defined benefit liability/asset, net* - - - - - - - - - - - (61) (61) Equity instruments through other comprehensive income, net* - - - - - - - - - 35 - - 35 Fair value changes on derivatives designated as cash flow hedge, net* - - - - - - - - - - 6 - 6 Fair value changes on investments, net* - - - - - - - - - - - 122 122 Total comprehensive income for the period - - - - - 6,114 - - - 35 6 61 6,216 Transferred from Special Economic Zone Re-investment reserve on utilization - - - - - 120 - - (120) - - - - Transferred from Special Economic Zone Re-investment reserve to retained earnings - - - - - 1,957 - - (1,957) - - - - Transferred on account of exercise of stock options (Refer to note 2.11) - - - - 204 - - (204) - - - - - Transferred on account of options not exercised - - - - - - 53 (53) - - - - - Shares issued on exercise of employee stock options (Refer to note 2.11) 1 - - - - - - - - - - - 1 Employee stock compensation expense (Refer to note 2.11) - - - - - - - 231 - - - - 231 Income tax benefit arising on exercise of stock options - - - - - - - 2 - - - - 2 Dividends - - - - - (9,139) - - - - - - (9,139) Balance as at June 30, 2025 2,077 54 2,862 169 1,258 70,572 412 1,045 5,964 333 (12) (91) 84,643 *net of tax The accompanying notes form an integral part of the interim condensed standalone financial statements. As per our report of even date attached for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm's Registration No: 117366W/W-100018 Vikas Bagaria Nandan M. Nilekani Salil Parekh Bobby Parikh Partner Chairman Chief Executive Officer Director Membership No. 060408 DIN: 00041245 and Managing Director DIN: 00019437 DIN: 01876159 Jayesh Sanghrajka A.G.S. Manikantha Bengaluru Chief Financial Officer Company Secretary July 23, 2025 Membership No. A21918 Other comprehensive income Other Equity Reserves & Surplus Equity Instruments through other comprehensive income Effective portion of Cash flow hedges Other items of other comprehensive income / (loss) Total equity attributable to equity holders of the Company (2)Profit / loss on transfer of business between entities under common control taken to reserve. Equity Share Capital Special Economic Zone Re- investment reserve (1) Capital reserve General reserve Capital redemption reserve Securities Premium (1)The Special Economic Zone Re-investment Reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act, 1961. The reserve should be utilized by the Company for acquiring new plant and machinery for the purpose of its business in the terms of the Sec 10AA(2) of the Income Tax Act, 1961. Share Options Outstanding Account Retained earnings 4
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INFOSYS LIMITED Condensed Statement of Cash Flows (In ₹ crore) Particulars Note No. 2025 2024 Profit for the period 6,114 5,768 Adjustments to reconcile net profit to net cash provided by operating activities Depreciation and Amortization 613 698 Income tax expense 2.16 2,546 2,360 Impairment loss recognized / (reversed) under expected credit loss model 39 4 Finance cost 55 59 (691) (576) 210 188 (185) (110) 192 46 Other adjustments 155 (218) Trade receivables and unbilled revenue (1,993) (830) Loans, other financial assets and other assets 1 (308) Trade payables (115) 376 Other financial liabilities, other liabilities and provisions 470 (49) 7,411 7,408 Income taxes (paid)/received (1,481) 1,050 Net cash generated by operating activities 5,930 8,458 (708) (296) (282) (260) 80 76 Interest and dividend received 910 731 Loan given to subsidiaries - (10) Loan repaid by subsidiaries 10 - Investment in subsidiaries (785) - Payment towards acquisition - (165) Receipt towards business transfer for entities under common control - 1 Payments to acquire investments Liquid mutual fund units (15,129) (15,699) Commercial papers - (2,077) Certificates of deposit (2,336) (1,415) Non-convertible debentures (1,373) (1,051) Other investments (1) - Proceeds on sale of investments Liquid mutual fund units 14,494 14,681 Commercial papers 3,500 6,660 Certificates of deposit 4,457 2,695 Non-convertible debentures 600 350 Government Securities 1,895 200 Tax free bonds and government bonds 403 - Net cash (used in) / generated from investing activities 5,735 4,421 Accounting Policy Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated. The Company considers all highly liquid investments that are readily convertible to known amounts of cash to be cash equivalents. Cash flow from investing activities Expenditure on property, plant and equipment Stock compensation expense Three months ended June 30, Changes in assets and liabilities Cash generated from operations Exchange differences on translation of assets and liabilities, net Cash flow from operating activities Interest and dividend income Redemption of deposits placed with corporation Deposits placed with corporation Provision for post sale client support 5
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(In ₹ crore) Particulars Note No. 2025 2024 Three months ended June 30, Payment of Lease Liabilities (204) (223) Shares issued on exercise of employee stock options 1 2 Other payments 3 (34) Payment of dividends (9,140) - (9,340) (255) 2,325 12,624 Effect of exchange rate changes on cash and cash equivalents (34) (14) Cash and cash equivalents at the beginning of the period 2.8 14,265 8,191 Cash and cash equivalents at the end of the period 2.8 16,556 20,801 Supplementary information: Restricted cash balance 2.8 58 78 Closing cash and cash equivalents as per Standalone Statement of Cash flow 16,556 20,801 Less: Earmarked bank balance for dividend - 11,625 Closing cash and cash equivalents as per Standalone Balance Sheet 16,556 9,176 The accompanying notes form an integral part of the interim condensed standalone financial statements. As per our report of even date attached for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm's Registration No: 117366W/W-100018 Vikas Bagaria Nandan M. Nilekani Salil Parekh Bobby Parikh Partner Chairman Chief Executive Officer Director Membership No. 060408 DIN: 00041245 and Managing Director DIN: 00019437 DIN: 01876159 Jayesh Sanghrajka A.G.S. Manikantha Bengaluru Chief Financial Officer Company Secretary July 23, 2025 Membership No. A21918 Cash flow from financing activities Net cash used in financing activities Net increase / (decrease) in cash and cash equivalents 6
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INFOSYS LIMITED Overview and Notes to the Interim Condensed Standalone Financial Statements 1. Overview 1.1 Company overview Infosys Limited ('the Company' or Infosys) provides consulting, technology, outsourcing and next-generation digital services, to enable clients to execute strategies for their digital transformation. Infosys strategic objective is to build a sustainable organization that remains relevant to the agenda of clients, while creating growth opportunities for employees and generating profitable returns for investors. Infosys strategy is to be a navigator for our clients as they ideate, plan and execute on their journey to a digital future. The Company is a public limited company incorporated and domiciled in India and has its registered office at Electronics City, Hosur Road, Bengaluru 560100, Karnataka, India. The company has its primary listings on the BSE Ltd. and National Stock Exchange of India Limited. The Company’s American Depositary Shares (ADS) representing equity shares are listed on the New York Stock Exchange (NYSE). The interim condensed standalone financial statements are approved for issue by the Company's Board of Directors on July 23, 2025. 1.2 Basis of preparation of financial statements Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The material accounting policy information used in preparation of the audited interim condensed standalone financial statements have been discussed in the respective notes. Fixed price maintenance revenue is recognized ratably on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period. Revenue from fixed price maintenance contract is recognized ratably using a percentage of completion method when the pattern of benefits from the services rendered to the customer and Company’s costs to fulfil the contract is not even through the period of the contract because the services are generally discrete in nature and not repetitive. The use of method to recognize the maintenance revenues requires judgment and is based on the promises in the contract and nature of the deliverables. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract. The Company uses the percentage-of-completion method in accounting for other fixed-price contracts. Use of the percentage-of-completion method requires the Company to determine the actual efforts or costs expended to date as a proportion of the estimated total efforts or costs to be incurred. Efforts or costs expended have been used to measure progress towards completion as there is a direct relationship between input and productivity. The estimation of total efforts or costs involves significant judgement and is assessed throughout the period of the contract to reflect any changes based on the latest available information. Contracts with customers includes subcontractor services or third-party vendor equipment or software in certain integrated services arrangements. In these types of arrangements, revenue from sales of third-party vendor products or services is recorded net of costs when the Company is acting as an agent between the customer and the vendor, and gross when the Company is the principal for the transaction. In doing so, the Company first evaluates whether it obtains control of the specified goods or services before they are transferred to the customer. The Company considers whether it is primarily responsible for fulfilling the promise to provide the specified goods or services, inventory risk, pricing discretion and other factors to determine whether it controls the specified goods or services and therefore, is acting as a principal or an agent. The Company’s contracts with customers include promises to transfer multiple products and services to a customer. Revenues from customer contracts are considered for recognition and measurement when the contract has been approved, in writing, by the parties to the contract, the parties to contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable. The Company assesses the services promised in a contract and identifies distinct performance obligations in the contract. Identification of distinct performance obligations to determine the deliverables and the ability of the customer to benefit independently from such deliverables, and allocation of transaction price to these distinct performance obligations involves significant judgement. These interim condensed standalone financial statements are prepared in compliance with Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting, under the historical cost convention on accrual basis except for certain financial instruments which are measured at fair values, defined benefit liability/(asset) which is recognised at the present value of defined benefit obligation less fair value of plan assets, the provisions of the Companies Act, 2013 (''the Act'') and guidelines issued by the Securities and Exchange Board of India (SEBI). Accordingly, these interim condensed standalone financial statements do not include all the information required for a complete set of financial statements. These interim condensed standalone financial statements should be read in conjunction with the standalone financial statements and related notes included in the Company’s Annual Report for the year ended March 31, 2025. The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter. 1.3 Use of estimates and judgments The preparation of the interim condensed standalone financial statements in conformity with Ind AS requires the management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the interim condensed standalone financial statements and reported amounts of revenues and expenses during the period. The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in Note no. 1.4. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates and judgements are reflected in the interim condensed standalone financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the interim condensed standalone financial statements. 1.4 Critical accounting estimates and judgments a. Revenue recognition 7
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Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company's assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. (Refer to note 2.1). b. Income taxes The Company's two major tax jurisdictions are India and the United States, though the Company also files tax returns in other overseas jurisdictions. Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions. c. Property, plant and equipment In assessing the realizability of deferred income tax assets, Management considers whether some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax assets are deductible, management believes that the company will realize the benefits of those deductible differences. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. (Refer to note 2.16). 8
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2. Notes to the Interim Condensed Standalone Financial Statements 2.1 PROPERTY, PLANT AND EQUIPMENT The estimated useful lives of assets are as follows: Building(1) 22-25 years Plant and machinery(1) 5 years Office equipment 5 years Computer equipment(1) 3-5 years Furniture and fixtures (1) 5 years Vehicles(1) 5 years Leasehold improvements Lower of useful life of the asset or lease term The changes in the carrying value of property, plant and equipment for the three months ended June 30, 2025 are as follows: (In ₹ crore) Particulars Land- Freehold Buildings(1)(2) Plant and machinery(2) Office Equipment(2) Computer equipment(2) Furniture and fixtures(2) Leasehold Improvements Vehicles Total Gross carrying value as at April 1, 2025 1,477 10,621 3,238 1,423 7,917 2,126 781 46 27,629 Additions 10 3 19 31 136 22 25 - 246 Deletions* - (5) (2) (6) (224) (3) - (1) (241) Gross carrying value as at June 30, 2025 1,487 10,619 3,255 1,448 7,829 2,145 806 45 27,634 Accumulated depreciation as at April 1, 2025 - (4,964) (2,888) (1,195) (6,062) (1,796) (611) (43) (17,559) Depreciation - (100) (37) (23) (217) (35) (21) - (433) Accumulated depreciation on deletions* - 1 2 5 214 3 - 1 226 Accumulated depreciation as at June 30, 2025 - (5,063) (2,923) (1,213) (6,065) (1,828) (632) (42) (17,766) Carrying value as at April 1, 2025 1,477 5,657 350 228 1,855 330 170 3 10,070 Carrying value as at June 30, 2025 1,487 5,556 332 235 1,764 317 174 3 9,868 The changes in the carrying value of property, plant and equipment for the three months ended June 30, 2024 are as follows: (In ₹ crore) Particulars Land- Freehold Buildings(1)(2) Plant and machinery(2) Office Equipment(2) Computer equipment(2) Furniture and fixtures(2) Leasehold Improvements Vehicles Total Gross carrying value as at April 1, 2024 1,430 10,679 3,214 1,370 7,379 2,160 963 45 27,240 Additions - 14 20 13 117 9 11 1 185 Deletions** - (37) (3) (3) (139) (19) (26) (1) (228) Gross carrying value as at June 30, 2024 1,430 10,656 3,231 1,380 7,357 2,150 948 45 27,197 Accumulated depreciation as at April 1, 2024 - (4,575) (2,732) (1,139) (5,497) (1,709) (733) (42) (16,427) Depreciation - (101) (48) (25) (271) (46) (37) (1) (529) Accumulated depreciation on deletions** - 5 3 3 138 18 26 1 194 Accumulated depreciation as at June 30, 2024 - (4,671) (2,777) (1,161) (5,630) (1,737) (744) (42) (16,762) Carrying value as at April 1, 2024 1,430 6,104 482 231 1,882 451 230 3 10,813 Carrying value as at June 30, 2024 1,430 5,985 454 219 1,727 413 204 3 10,435 (1) Buildings include ₹250/- being the value of five shares of ₹50/- each in Mittal Towers Premises Co-operative Society Limited. (2) Includes certain assets provided on cancellable operating lease to subsidiaries. Accounting Policy Impairment Repairs and maintenance costs are recognized in the condensed statement of Profit and Loss when incurred. The aggregate depreciation has been included under depreciation and amortization expense in the condensed statement of Profit and Loss. Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. If such assets are considered to be impaired, the impairment to be recognized in the interim condensed Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the condensed Statement of Profit and Loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated depreciation) had no impairment loss been recognized for the asset in prior years. Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by the Management. The charge in respect of periodic depreciation is derived at after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The Company depreciates property, plant and equipment over their estimated useful lives using the straight-line method. (1) Based on technical evaluation, the Management believes that the useful lives as given above best represent the period over which Management expects to use these assets. Hence, the useful lives for these assets is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013. Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end. The useful lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not ready to use before such date are disclosed under ‘Capital work-in-progress’. Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset. *During the three months June 30, 2025, certain assets which were not in use having gross book value of ₹208 crore (net book value: ₹Nil) were retired. **During the three months June 30, 2024, certain assets which were not in use having gross book value of ₹101 crore (net book value: nil) were retired. 9
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2.2 GOODWILL AND INTANGIBLE ASSETS 2.2.1 Goodwill Following is a summary of changes in the carrying amount of goodwill: (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Carrying value at the beginning 211 211 Carrying value at the end 211 211 2.2.2 Other Intangible Assets Research costs are expensed as incurred. Software product development costs are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Company has an intention and ability to complete and use or sell the software and the costs can be measured reliably. The costs which can be capitalized include the cost of material, direct labor, overhead costs that are directly attributable to prepare the asset for its intended use. As at Accounting Policy Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry, and known technological advances), and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and useful lives are reviewed periodically including at each financial year end. 10
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2.3 LEASES (In ₹ crore) Particulars Total Land Buildings Computers Balance as at April 1, 2025 530 2,105 443 3,078 Additions* - 166 201 367 Deletions - (1) (62) (63) Depreciation (1) (116) (64) (181) Balance as at June 30, 2025 529 2,154 518 3,201 * Net of adjustments on account of modifications (In ₹ crore) Particulars Total Land Buildings Computers Balance as at April 1, 2024 534 2,266 503 3,303 Additions* - 89 109 198 Deletions - - (43) (43) Depreciation (1) (118) (52) (171) Balance as at June 30, 2024 533 2,237 517 3,287 * Net of adjustments on account of modifications (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Current lease liabilities 830 765 Non-current lease liabilities 2,941 2,694 Total 3,771 3,459 As at Accounting Policy The Company as a lessee The Company’s lease asset classes primarily consist of leases for land, buildings and computers. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset. At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised. When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease. For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease. The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in the interim condensed statement of Profit and Loss. The following is the break-up of current and non-current lease liabilities as at June 30, 2025 and March 31, 2025: As a lessee, the Company determines the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Infosys’s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right-of-use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option. Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows. The Company as a lessor Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. Category of ROU asset Following are the changes in the carrying value of right-of-use assets for the three months ended June 30, 2025: Category of ROU asset Following are the changes in the carrying value of right-of-use assets for the three months ended June 30, 2024: 11
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2.4 INVESTMENTS (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Non-current investments Equity instruments of subsidiaries 14,509 13,724 Redeemable Preference shares of subsidiary 2,831 2,831 Preference securities and equity securities 291 251 Target maturity fund units 476 465 Others 65 61 Tax free bonds 1,100 1,465 Government bonds - 14 Non-convertible debentures 4,440 3,320 Government Securities 4,117 5,240 Total non-current investments 27,829 27,371 Current investments Liquid mutual fund units 1,869 1,185 Commercial Papers - 3,442 Certificates of deposit 1,196 3,257 Tax free bonds 156 154 Government bonds 15 - Government Securities 822 1,560 Non-convertible debentures 1,236 1,549 Total current investments 5,294 11,147 Total carrying value 33,123 38,518 (In ₹ crore, except as otherwise stated) Particulars June 30, 2025 March 31, 2025 Non-current investments Unquoted Investment carried at cost Investments in equity instruments of subsidiaries Infosys BPM Limited 662 662 33828 (33,828) equity shares of ₹10,000/- each, fully paid up Infosys Technologies (China) Co. Limited 369 369 Infosys Technologies, S. de R.L. de C.V., Mexico 65 65 17,49,99,990 (17,49,99,990) equity shares of MXN 1 par value, fully paid up Infosys Technologies (Sweden) AB 76 76 1,000 (1,000) equity shares of SEK 100 par value, fully paid Infosys Technologies (Shanghai) Company Limited 1,010 1,010 Infosys Public Services, Inc. 99 99 3,50,00,000 (3,50,00,000) shares of USD 0.50 par value, fully paid Infosys Consulting Holding AG 1,323 1,323 23,350 (23,350) - Class A shares of CHF 1,000 each and 26,460 (26,460) - Class B Shares of CHF 100 each, fully paid up EdgeVerve Systems Limited 1,312 1,312 1,31,18,40,000 (1,31,18,40,000) equity shares of ₹10/- each, fully paid up Infosys Nova Holdings LLC# 3,308 3,017 Infosys Singapore Pte Ltd 4,821 4,327 2,88,39,411 (2,73,19,411) shares Brilliant Basics Holding Limited 59 59 1,346 (1,346) shares of GBP 0.005 each, fully paid up Infosys Arabia Limited 2 2 70 (70) shares Panaya Inc. 582 582 2 (2) shares of USD 0.01 per share, fully paid up Infosys Chile SpA 7 7 100 (100) shares Infosys Luxembourg S.a r.l. 26 26 30,000 (30,000) shares Infosys Austria GmbH - - 80,000 (80,000) shares of EUR 1 par value, fully paid up Infosys Consulting Brazil 337 337 27,50,71,070 (27,50,71,070) shares of BRL 1 per share, fully paid up Infosys Consulting S.R.L. (Romania) 34 34 99,183 (99,183) shares of RON 100 per share, fully paid up Infosys Limited Bulgaria EOOD 2 2 4,58,000 (4,58,000) shares of BGN 1 per share, fully paid up Infosys Germany Holdings GmbH 2 2 25,000 (25,000) shares EUR 1 per share, fully paid up Infosys Green Forum 1 1 10,00,000 (10,00,000) shares ₹10 per share, fully paid up Infosys Automotive and Mobility GmbH 15 15 Infosys Turkey Bilgi Teknolojileri Limited Sirketi 79 79 1,508,060 (1,508,060) share Turkish Liras 100 (10,000) per share, fully paid up Infosys Consulting S.R.L. (Argentina) 2 2 2,94,500 (2,94,500) shares AR$ 100 per share, fully paid up Infosys Business Solutions LLC 8 8 10,000 (10,000) shares USD 100 per share, fully paid up Idunn Information Technology Private Limited 82 82 3,27,788 (3,27,788) shares ₹ 10 per share fully paid up InSemi Technology Services Private Limited 198 198 10,33,440 ('10,33,440) shares ₹ 10 per share fully paid up in-tech Group India Private Limited 15 15 10,000 (10,000) shares ₹ 10 per share fully paid up Infosys Services (Thailand) Limited 13 13 49,99,998 (49,99,998) shares THB 10 per share fully paid up Investments in Redeemable Preference shares of subsidiary Infosys Singapore Pte Ltd 2,831 2,831 51,02,00,000 (51,02,00,000 ) shares 17,340 16,555 As at As at 12
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(In ₹ crore, except as otherwise stated) Particulars June 30, 2025 March 31, 2025 As at Investments carried at fair value through profit or loss Target maturity fund units 476 465 Equity and Preference securities 25 25 Others (1) 65 61 566 551 Investments carried at fair value through other comprehensive income Preference securities 167 167 Equity securities 2 2 169 169 Quoted Investments carried at amortized cost Tax free bonds 1,100 1,465 Government bonds - 14 1,100 1,479 Investments carried at fair value through other comprehensive income Non-convertible debentures 4,440 3,320 Equity Securities 97 57 Government Securities 4,117 5,240 8,654 8,617 Total non-current investments 27,829 27,371 Current investments Unquoted Investments carried at fair value through profit or loss Liquid mutual fund units 1,869 1,185 1,869 1,185 Investments carried at fair value through other comprehensive income Commercial Papers - 3,442 Certificates of deposit 1,196 3,257 1,196 6,699 Quoted Investments carried at amortized cost Tax free bonds 156 154 Government bonds 15 - 171 154 Investments carried at fair value through other comprehensive income Government Securities 822 1,560 Non-convertible debentures 1,236 1,549 2,058 3,109 Total current investments 5,294 11,147 Total investments 33,123 38,518 11,983 13,359 2,233 3,266 9,881 10,269 Aggregate amount of unquoted investments 21,140 25,159 # Aggregate amount of impairment in value of investments 94 94 Reduction in the fair value of assets held for sale 854 854 Investments carried at cost 17,340 16,555 Investments carried at amortized cost 1,271 1,633 Investments carried at fair value through other comprehensive income 12,077 18,594 Investments carried at fair value through profit or loss 2,435 1,736 (1) Uncalled capital commitments outstanding as of June 30, 2025 and March 31, 2025 was ₹26 crore and ₹27 crore, respectively. Refer to note 2.10 for accounting policies on financial instruments. Method of fair valuation: (In ₹ crore) Class of investment Method June 30, 2025 March 31, 2025 1,869 1,185 Quoted price 476 465 1,391 1,796 5,676 4,869 4,939 6,800 Market observable inputs - 3,442 Market observable inputs 1,196 3,257 97 57 169 169 25 25 65 61 Total 15,903 22,126 Note : Certain quoted investments are classified as Level 2 in the absence of active market for such investments. Others - carried at fair value through profit or loss Discounted cash flows method, Market multiples method, Option pricing model Quoted price Quoted equity securities - carried at fair value through other comprehensive income Certificates of deposit - carried at fair value through other comprehensive income Aggregate amount of quoted investments Fair value as at Market value of quoted investments (including interest accrued), current Market value of quoted investments (including interest accrued), non-current Quoted price and market observable inputs Quoted price and market observable inputs Liquid mutual fund units - carried at fair value through profit or loss Quoted price Target maturity fund units - carried at fair value through profit or loss Tax free bonds and government bonds - carried at amortized cost Non-convertible debentures - carried at fair value through other comprehensive income Government securities - carried at fair value through other comprehensive income Commercial Papers - carried at fair value through other comprehensive income Discounted cash flows method, Market multiples method, Option pricing model Quoted price and market observable inputs Discounted cash flows method, Market multiples method, Option pricing modelUnquoted equity and preference securities - carried at fair value through profit or loss Unquoted equity and preference securities - carried at fair value through other comprehensive income 13
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2.5 LOANS (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Non- Current Loan to subsidiary - 10 Loans considered good - Unsecured Other Loans Loans to employees 12 16 Total non - current loans 12 26 Current Loans considered good - Unsecured Other Loans Loans to employees 195 207 Total current loans 195 207 Total Loans 207 233 2.6 OTHER FINANCIAL ASSETS (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Non-current Security deposits (1) 210 205 Unbilled revenues (1)(5)# 1,927 1,904 Net investment in lease(1) 267 241 Total non-current other financial assets 2,404 2,350 Current Security deposits (1) 21 21 Restricted deposits (1)* 2,918 2,716 Unbilled revenues (1)(5)# 5,938 5,681 Interest accrued but not due (1) 455 739 Foreign currency forward and options contracts (2)(3) 54 171 Net investment in lease (1) 269 228 Others (1)(4) 3,524 3,013 Total current other financial assets 13,179 12,569 Total other financial assets 15,583 14,919 (1) Financial assets carried at amortized cost 15,529 14,748 (2) Financial assets carried at fair value through other comprehensive income 29 28 (3) Financial assets carried at fair value through Profit or Loss 25 143 (4) Includes dues from subsidiaries 3,399 2,863 (5) Includes dues from subsidiaries 192 165 # Classified as financial asset as right to consideration is unconditional and is due only after a passage of time. 2.7 TRADE RECEIVABLES (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Current Trade Receivable considered good - Unsecured (1) 28,166 26,807 Less: Allowance for expected credit loss 415 394 Trade Receivable considered good - Unsecured 27,751 26,413 Trade Receivable - credit impaired - Unsecured 188 169 Less: Allowance for credit impairment 188 169 Trade Receivable - credit impaired - Unsecured - - Total trade receivables (2) 27,751 26,413 (1) Includes dues from subsidiaries 304 250 (2) Includes dues from companies where directors are interested - - As at As at As at * Restricted deposits represent deposit with financial institutions to settle employee related obligations as and when they arise during the normal course of business. 14
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2.8 CASH AND CASH EQUIVALENTS (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Balances with banks In current and deposit accounts 16,556 14,265 Cash on hand - - Total Cash and cash equivalents 16,556 14,265 Balances with banks in unpaid dividend accounts 44 45 Deposit with more than 12 months maturity - - 2.9 OTHER ASSETS (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Non-current Capital advances 194 206 Advances other than capital advances Others Prepaid expenses 258 154 Defined benefit plan assets 177 257 Deferred contract cost Cost of obtaining a contract 307 299 Cost of fulfillment 697 676 Unbilled revenues(2) 107 119 Withholding taxes and others(3) 514 512 Total non-current other assets 2,254 2,223 Current Advances other than capital advances Payment to vendors for supply of goods 212 373 Others Prepaid expenses (1) 2,045 2,003 Unbilled revenues(2) 4,572 4,284 Deferred contract cost Cost of obtaining a contract 198 212 Cost of fulfillment 460 428 Withholding taxes and others(3) 1,827 2,309 Other receivables (1) 15 9 Total current other assets 9,329 9,618 Total other assets 11,583 11,841 (1) Includes dues from subsidiaries 125 151 (2) Classified as non-financial asset as the contractual right to consideration is dependent on completion of contractual milestones. As at As at Withholding taxes and others primarily consist of input tax credits and VAT recoverable from tax authorities. Cash and cash equivalents as at June 30, 2025 and March 31, 2025 include restricted cash and bank balances of ₹58 crore and ₹45 crore, respectively. The deposits maintained by the Company with banks and financial institutions comprise of time deposits, which can be withdrawn by the Company at any point without prior notice or penalty on the principal. 15
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2.10 FINANCIAL INSTRUMENTS (iii) Financial assets carried at fair value through profit or loss (FVTPL) 2.10.2 Subsequent measurement a. Non-derivative financial instruments b. Derivative financial instruments A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Company has made an irrevocable election for certain investments which are classified as equity instruments to present the subsequent changes in fair value in other comprehensive income based on its business model. A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss. This category includes derivative financial assets or liabilities which are not designated as hedges. (iv) Financial liabilities Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration recognized in a business combination which is subsequently measured at fair value through profit or loss. Accounting Policy 2.10.1 Initial recognition (ii) Financial assets carried at fair value through other comprehensive income (FVOCI) The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date. (i) Financial assets carried at amortized cost A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. (v) Investment in subsidiaries The Company holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for such contracts is generally a bank. Investment in subsidiaries is carried at cost in the separate financial statements. (ii) Cash flow hedge 2.10.4 Fair value of financial instruments The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company's Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires. In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, option pricing model, market multiples, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized. Refer to table 'Financial instruments by category' below for the disclosure on carrying value and fair value of financial assets and liabilities. For financial assets and liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the carrying amounts approximate fair value due to the short maturity of these instruments. Primarily the Company designates certain foreign exchange forward and options contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash transactions. When a derivative is designated as a cash flow hedge instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedge reserve. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the net profit in the condensed standalone Statement of Profit and Loss. If the hedging instrument no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash flow hedge reserve till the period the hedge was effective remains in cash flow hedge reserve until the forecasted transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedge reserve is transferred to the net profit in the condensed standalone Statement of Profit and Loss upon the occurrence of the related forecasted transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedge reserve is reclassified to net profit in the Statement of Profit and Loss. Although the Company believes that these derivatives constitute hedges from an economic perspective, they may not qualify for hedge accounting under Ind AS 109, Financial Instruments. Any derivative that is either not designated as hedge, or is so designated but is ineffective as per Ind AS 109, is categorized as a financial asset or financial liability, at fair value through profit or loss. Derivatives not designated as hedges are recognized initially at fair value and attributable transaction costs are recognized in net profit in the Statement of Profit and Loss when incurred. Subsequent to initial recognition, these derivatives are measured at fair value through profit or loss and the resulting exchange gains or losses are included in other income. Assets/ liabilities in this category are presented as current assets/current liabilities if they are either held for trading or are expected to be realized within 12 months after the Balance Sheet date. (i) Financial assets or financial liabilities, carried at fair value through profit or loss. 2.10.3 Derecognition of financial instruments 16
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Financial instruments by category The carrying value and fair value of financial instruments by categories as at June 30, 2025 are as follows: (In ₹ crore) Particulars Designated upon initial recognition Mandatory Equity instruments designated upon initial recognition Mandatory Assets: Cash and cash equivalents (Refer to note 2.8) 16,556 - - - - 16,556 16,556 Investments (Refer to note 2.4) Preference securities, Equity securities and others - 25 65 266 - 356 356 Tax free bonds and government bonds 1,271 - - - - 1,271 1,391 (1) Liquid mutual fund units - - 1,869 - - 1,869 1,869 Target maturity fund units - - 476 - - 476 476 Certificates of deposit - - - - 1,196 1,196 1,196 Non convertible debentures - - - - 5,676 5,676 5,676 Government Securities - - - - 4,939 4,939 4,939 Trade receivables (Refer to note 2.7) 27,751 - - - - 27,751 27,751 Loans (Refer to note 2.5) 207 - - - - 207 207 Other financial assets (Refer to note 2.6) (3) 15,529 - 25 - 29 15,583 15,522 (2) Total 61,314 25 2,435 266 11,840 75,880 75,939 Liabilities: Trade payables (Refer to note 2.13) 2,612 - - - - 2,612 2,612 Lease liabilities (Refer to note 2.3) 3,771 - - - - 3,771 3,771 Other financial liabilities (Refer to note 2.12) 13,088 - 293 - 24 13,405 13,405 Total 19,471 - 293 - 24 19,788 19,788 (1) On account of fair value changes including interest accrued (2) Excludes interest accrued on tax free bonds and government bonds carried at amortized cost of ₹61 crore (3) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones The carrying value and fair value of financial instruments by categories as at March 31, 2025 were as follows: (In ₹ crore) Particulars Designated upon initial recognition Mandatory Equity instruments designated upon initial recognition Mandatory Assets: Cash and cash equivalents (Refer to note 2.8) 14,265 - - - - 14,265 14,265 Investments (Refer to note 2.4) Preference securities, Equity securities and others - 25 61 226 - 312 312 Tax free bonds and government bonds 1,633 - - - - 1,633 1,796 (1) Target maturity fund units - - 465 - - 465 465 Liquid mutual fund units - - 1,185 - - 1,185 1,185 Commercial Papers - - - - 3,442 3,442 3,442 Certificates of deposit - - - - 3,257 3,257 3,257 Non convertible debentures - - - - 4,869 4,869 4,869 Government Securities - - - - 6,800 6,800 6,800 Trade receivables (Refer to note 2.7) 26,413 - - - - 26,413 26,413 Loans (Refer to note 2.5) 233 - - - - 233 233 Other financial assets (Refer to note 2.6) (3) 14,748 - 143 - 28 14,919 14,839 (2) Total 57,292 25 1,854 226 18,396 77,793 77,876 Liabilities: Trade payables (Refer to note 2.13) 2,728 - - - - 2,728 2,728 Lease Liabilities (Refer to note 2.3) 3,459 - - - - 3,459 3,459 Other financial liabilities (Refer to note 2.12) 13,593 - 54 - 33 13,680 13,680 Total 19,780 - 54 - 33 19,867 19,867 (1) On account of fair value changes including interest accrued (2) Excludes interest accrued on tax free bonds and government bonds carried at amortized cost of ₹80 crore (3) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones Amortized cost Total carrying value Total fair value Amortized cost Financial assets/ liabilities at fair value through profit or loss Financial assets/liabilities at fair value through OCI 2.10.5 Impairment Financial assets/ liabilities at fair value through profit or loss Financial assets/liabilities at fair value through OCI Total fair valueTotal carrying value The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets and unbilled revenues which are not fair valued through profit or loss. Loss allowance for trade receivables and unbilled revenues with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Company considers current and anticipated future economic conditions relating to industries the Company deals with and the countries where it operates. The amount of ECLs (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recorded is recognized as an impairment loss or gain in statement of profit and loss. 17
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Fair value hierarchy Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). (In ₹ crore) Particulars Level 1 Level 2 Level 3 Assets Investments (Refer to note 2.4) Investments in tax free bonds 1,376 814 562 - Investments in government bonds 15 15 - - Investments in liquid mutual fund units 1,869 1,869 - - Investments in target maturity fund units 476 476 - - Investments in certificates of deposit 1,196 - 1,196 - Investments in non convertible debentures 5,676 4,529 1,147 - Investments in government securities 4,939 4,867 72 - Investments in equity securities 99 97 - 2 Investments in preference securities 192 - - 192 Other investments 65 - - 65 Others 54 - 54 - Liabilities 285 - 285 - 32 - - 32 (In ₹ crore) Particulars Level 1 Level 2 Level 3 Assets Investments (Refer to note 2.4) Investments in tax free bonds 1,781 1,227 554 - Investments in target maturity fund units 465 465 - - Investments in government bonds 15 15 - - Investments in liquid mutual fund units 1,185 1,185 - - Investments in certificates of deposit 3,257 - 3,257 - Investments in commercial papers 3,442 - 3,442 - Investments in non convertible debentures 4,869 4,869 - - Investments in government securities 6,800 6,763 37 - Investments in equity securities 59 57 - 2 Investments in preference securities 192 - - 192 61 - - 61 Others 171 - 171 - Liabilities 56 - 56 - 31 - - 31 Liability towards contingent consideration (Refer to note 2.12) (1) Liability towards contingent consideration (Refer to note 2.12) (1) (1) Discount rate - 6 % Majority of investments of the Company are fair valued based on Level 1 or Level 2 inputs. These investments primarily include investment in liquid mutual fund units, target maturity fund units, tax free bonds, certificates of deposit, commercial papers, treasury bills, government securities, non-convertible debentures, quoted bonds issued by government and quasi-government organizations. The Company invests after considering counterparty risks based on multiple criteria including Tier I capital, Capital Adequacy Ratio, Credit Rating, Profitability, NPA levels and Deposit base of banks and financial institutions. These risks are monitored regularly as per Company's risk management program. During the year ended March 31, 2025, State government securities and non-convertible debentures of ₹36 crore and ₹261 crore were transferred from Level 2 to Level 1 of fair value hierarchy since these were valued based on quoted price. Further Tax free bond of ₹554 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March 31, 2025 was as follows: Derivative financial instruments - loss (Refer note 2.12) A one percentage point change in the unobservable inputs used in fair valuation of Level 3 assets and liabilities does not have a significant impact in its value. Other investments Derivative financial instruments - gains (Refer to note 2.6) Fair value measurement at end of the reporting period using As at March 31, 2025 During the three months ended June 30, 2025, State government securities and non-convertible debentures of ₹37 crore and ₹1147 crore were transferred from Level 1 to Level 2 of fair value hierarchy since these were valued based on market observable inputs. (1) Discount rate - 6 % The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at June 30, 2025 is as follows: For trade receivables, trade payables, other assets and payables maturing within one year from the Balance Sheet date, the carrying amounts approximate the fair value due to the short maturity of these instruments. Derivative financial instruments - loss (Refer to note 2.12) Derivative financial instruments - gains (Refer to note 2.6) Fair value measurement at end of the reporting period using Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). As at June 30, 2025 18
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2.11 EQUITY Accounting policy Ordinary Shares Description of reserves Retained earnings Retained earnings represent the amount of accumulated earnings of the Company. Securities premium Share options outstanding account Other components of equity Cash flow hedge reserve 2.11.1 EQUITY SHARE CAPITAL (In ₹ crore, except as otherwise stated) Particulars June 30, 2025 March 31, 2025 Authorized Equity shares, ₹5/- par value 480,00,00,000 (480,00,00,000) equity shares 2,400 2,400 Issued, Subscribed and Paid-Up Equity shares, ₹5/- par value 2,077 2,076 415,42,72,628 (415,32,63,455) equity shares fully paid-up 2,077 2,076 Forfeited shares amounted to ₹1,500/- (₹1,500/-) (in ₹ crore, except as stated otherwise) Particulars Number of shares Amount Number of shares Amount As at the beginning of the period 4,15,32,63,455 2,076 4,15,08,67,464 2,075 Add: Shares issued on exercise of employee stock options 1,009,173 1 2,395,991 1 As at the end of the period 4,15,42,72,628 2,077 4,15,32,63,455 2,076 Capital allocation policy The Company has only one class of shares referred to as equity shares having a par value of ₹5/-. Each holder of equity shares is entitled to one vote per share. The equity shares represented by American Depository Shares (ADS) carry similar rights to voting and dividends as the other equity shares. Each ADS represents one underlying equity share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company in proportion to the number of equity shares held by the shareholders, after distribution of all preferential amounts. However, no such preferential amounts exist currently. There are no voting, dividend or liquidation rights to the holders of options issued under the company's share option plans. For details of shares reserved for issue under the employee stock option plan of the Company, refer to the note below. Ordinary shares are classifiedas equity share capital. Incremental costs directly attributable to the issuance of new ordinary shares, share options and buyback are recognized as a deduction from equity, net of any tax effects. In accordance with section 69 of the Indian Companies Act, 2013, the Company creates capital redemption reserve equal to the nominal value of the shares bought back as an appropriation from general reserve / retained earnings. The amount received in excess of the par value of equity shares has been classified as securities premium. Amounts have been utilized for bonus issue and share buyback from share premium account. The Share options outstanding account is used to record the fair value of equity-settled share based payment transactions with employees. The amounts recorded in share options outstanding account are transferred to securities premium upon exercise of stock options and transferred to general reserve on account of stock options not exercised by employees. The Special Economic Zone Re-investment reserve has been created out of the profit of the eligibleSEZ unit in terms of the provisions of Sec 10AA (1)(ii) of Income Tax Act, 1961. The reserve should be utilized by the Company for acquiring new plant and machinery for the purpose of its business in terms of the provisions of the Sec 10AA (2) of the Income Tax Act, 1961. Capital redemption reserve As at Special Economic Zone Re-investment reserve Other components of equity include remeasurement of net defined benefit liability/ asset, equity instruments fair valued through other comprehensive income, changes on fair valuation of investments and changes in fair value of derivatives designated as cash flow hedges, net of taxes. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedging reserve. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the condensed standalone Statement of Profit and Loss upon the occurrence of the related forecasted transaction. Effective fiscal 2025, the Company expects to continue its policy of returning approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback/ special dividends subject to applicable laws and requisite approvals, if any. Under this policy, the Company expects to progressively increase its annual dividend per share (excluding special dividend if any). Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under IFRS. Dividend and buyback include applicable taxes As at March 31, 2025As at June 30, 2025 The reconciliation of the number of shares outstanding and the amount of share capital as at June 30, 2025 and March 31, 2025 is set out below: 19
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2.11.2 DIVIDEND (in ₹) 2025 2024 Final dividend for fiscal 2025 22.00 - Special dividend for fiscal 2024 - 8.00 Final dividend for fiscal 2024 - 20.00 The following is the summary of grants during three months ended June 30, 2025 and June 30, 2024: 2025 2024 2015 Plan: RSU Equity settled RSUs Key Management Personnel (KMP) 277,077 295,168 Employees other than KMP 5,000 96,490 282,077 391,658 2015 Plan: Employee Stock Options (ESOPs) Equity settled RSUs Key Management Personnel (KMP) 237,370 - Employees other than KMP 5,412,790 - 5,650,160 - Cash settled RSUs Key Management Personnel (KMP) - - Employees other than KMP 108,180 - 108,180 - Total Grants under 2015 Plan 6,040,417 391,658 2019 Plan: RSU Equity settled RSUs Key Management Personnel (KMP) 66,366 70,699 Employees other than KMP - 6,848 66,366 77,547 Total Grants under 2019 Plan 66,366 77,547 Notes on grants to KMP: Controlled trust holds 90,98,409 and 96,55,927 shares as at June 30, 2025 and March 31, 2025, respectively under the 2015 plan. Out of these shares, 2,00,000 equity shares each have been earmarked for welfare activities of the employees as at June 30, 2025 and March 31, 2025. The Company’s objective when managing capital is to safeguard its abilityto continue as a going concern and to maintain an optimal capital structure so as to maximizeshareholder value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares or buy back issued shares. As of June 30, 2025, the Company has only one class of equity shares and has no debt. Consequent to the above capital structure there are no externally imposed capital requirements. Particulars 2015 Stock Incentive Compensation Plan (the 2015 Plan): On March 31, 2016, pursuant to the approval by the shareholders through postal ballot, the Board was authorized to introduce, offer, issue and allot share-based incentives to eligible employees of the Company and its subsidiaries under the 2015 Plan. The maximum number of shares under the 2015 plan shall not exceed 2,40,38,883 equity shares (this includes 1,12,23,576 equity shares which are held by the trust towards the 2011 Plan as at March 31, 2016). These instruments will generally vest over a period of 4 years. The plan numbers mentioned above are further adjusted with the September 2018 bonus issue. The equity settled and cash settled RSUs and stock options would vest generally over a period of 4 years and shall be exercisable within the period as approved by the Nomination and Remuneration Committee (NARC). The exercise price of the RSUs will be equal to the par value of the shares and the exercise price of the stock options would be the market price as on the date of grant. 2.11.3 Employee Stock Option Plan (ESOP): The Company recognizes compensation expense relating to share-based payments in net profit based on estimated fair-values of the awards on the grant date. The estimated fair value of awards is recognized as an expense in the statement of profit and loss on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was in-substance, multiple awards with a corresponding increase to share options outstanding account. Infosys Expanded Stock Ownership Program 2019 (the 2019 Plan): On June 22, 2019 pursuant to approval by the shareholders in the Annual General Meeting, the Board has been authorized to introduce, offer, issue and provide share-based incentives to eligibleemployees of the Company and its subsidiariesunder the 2019 Plan. The maximumnumber of shares under the 2019 plan shall not exceed 5,00,00,000 equity shares. To implementthe 2019 Plan, up to 4,50,00,000 equity shares may be issued by way of secondary acquisition of shares by Infosys Expanded Stock Ownership Trust. The Restricted Stock Units (RSUs) granted under the 2019 plan shall vest based on the achievement of defined annual performance parameters as determined by the administrator (Nomination and Remuneration Committee). The performance parameters will be based on a combination of relative Total Shareholder Return (TSR) against selected industry peers and certain broader market domestic and global indices and operating performance metrics of the company as decided by administrator. Each of the above performance parameters will be distinct for the purposes of calculation of quantity of shares to vest based on performance. These instruments will generally vest between a minimum of 1 to maximum of 3 years from the grant date. Particulars Three months ended June 30, Accounting Policy The Board of Directors in their meeting held on April 17, 2025 recommended a final dividend of ₹22/- per equity share for the financial year ended March 31, 2025. The same was approved by the shareholders at the Annual General Meeting (AGM) of the Company held on June 25, 2025 which resulted in a net cash outflow of ₹9,139 crore, excluding dividend paid on treasury shares. The final dividend was paid on June 30, 2025. The final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company's Board of Directors. Income tax consequences of dividends on financial instruments classified as equity will be recognized according to where the entity originally recognized those past transactions or events that generated distributable profits. The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute dividend after deducting applicabletaxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates. The amount of per share dividend recognized as distribution to equity shareholders in accordance with Companies Act 2013 is as follows:- Three months ended June 30, 20
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CEO & MD Under the 2015 plan: The break-up of employee stock compensation expense is as follows: (in ₹ crore) 2025 2024 17 18 193 170 210 188 (1) Cash settled stock compensation expense included in the above 2 1 The fair value of each equity settled award is estimated on the date of grant using the following assumptions: Particulars Fiscal 2026- Equity Shares- RSU Fiscal 2026- Equity Shares- ESOP Fiscal 2026- ADS-ESOP Fiscal 2025- Equity Shares-RSU Fiscal 2025- ADS-RSU Weighted average share price (₹) / ($ ADS) 1,507 1,554 17.93 1,414 16.87 Exercise price (₹) / ($ ADS) 5 1,554 17.93 5 0.07 Expected volatility (%) 24-25 25-28 26-30 23-26 23-28 Expected life of the option (years) 1-4 3-7 3-7 1-4 1-4 Expected dividends (%) 2-3 2-3 2-3 2-3 2-3 Risk-free interest rate (%) 6 6 4 7 4-5 1,355 390 4.09 1,298 15.45 The Board, on April 17, 2025, based on the recommendations of the Nomination and Remuneration Committee, approved performance-based grant of RSUs amounting to ₹10 crore for fiscal 2026 under the 2019 Plan. These RSUs will vest based on achievement of certain performance targets. Accordingly, 66,366 performance based RSU’s were granted effective May 2, 2025. The Board, on April 17, 2025, based on the recommendations of the Nomination and Remuneration Committee approved the following grants for fiscal 2026. In accordance with such approval the following grants were made effective May 2, 2025. - 2,30,621 performance-based RSUs (Annual performance equity grant) of fair value of ₹34.75 crore. These RSUs will vest in line with the employment agreement based on achievement of certain performance targets. - 13,273 performance-based grant of RSUs (Annual performance equity ESG grant) of fair value of ₹2 crore. These RSUs will vest in line with the employment agreement based on achievement of certain environment, social and governance milestones as determined by the Board. - 33,183 performance-based grant of RSUs (Annual performance Equity TSR grant) of fair value of ₹5 crore . These RSUs will vest in line with the employment agreement based on Company’s performance on cumulative relative TSR over the years and as determined by the Board. The expected life of the RSU/ESOP is estimated based on the vesting term and contractual term of the RSU/ESOP, as well as expected exercise behavior of the employee who receives the RSU/ESOP. The fair value of the awards are estimated using the Black-Scholes Model for time and non-market performance-based options and Monte Carlo simulation model is used for TSR based options. The inputs to the model include the share price at date of grant, exercise price, expected volatility, expected dividends, expected term and the risk free rate of interest. Expected volatility during the expected term of the options is based on historical volatility of the observed market prices of the Company's publicly traded equity shares during a period equivalent to the expected term of the options. Expected volatility of the comparative company have been modelled based on historical movements in the market prices of their publicly traded equity shares during a period equivalent to the expected term of the options. Correlation coefficient is calculated between each peer entity and the indices as a whole or between each entity in the peer group. Though the annual time based grants and annual performance equity TSR grant for the remaining employment term ending on March 31, 2027 have not been granted as of June 30, 2025, since the service commencement date precedes the grant date, the company has recorded employment stock compensation expense in accordance with Ind AS 102, Share based payment. The grant date for this purpose in accordance with Ind AS 102, Share based payment is July 1, 2022. Granted to: Particulars Three months ended June 30, Weighted average fair value as on grant date (₹) / ($ ADS) KMP For options granted in Total (1) Employees other than KMP Under the 2019 plan: 21
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2.12 OTHER FINANCIAL LIABILITIES (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Non-current Others Compensated absences 97 90 Accrued compensation to employees (1) 7 5 Accrued expenses (1) 1,843 1,876 Payable for acquisition of business - Contingent consideration (2) - 20 Total non-current other financial liabilities 1,947 1,991 Current Unpaid dividends (1) 44 45 Others Accrued compensation to employees (1) 3,218 3,781 Accrued expenses (1)(4) 6,840 6,210 Capital creditors (1) 90 470 Compensated absences 2,601 2,322 Payable for acquisition of business - Contingent consideration (2) 32 11 Other payables (1)(5) 1,046 1,206 Foreign currency forward and options contracts (2)(3) 285 56 Total current other financial liabilities 14,156 14,101 Total other financial liabilities 16,103 16,092 (1) Financial liability carried at amortized cost 13,088 13,593 (2) Financial liability carried at fair value through profit or loss 293 54 (3) Financial liability carried at fair value through other comprehensive income 24 33 (4) Includes dues to subsidiaries 59 56 (5) Includes dues to subsidiaries 875 962 2.13 TRADE PAYABLES (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Outstanding dues of micro enterprises and small enterprises 4 8 Outstanding dues of creditors other than micro enterprises and small enterprises(1) 2,608 2,720 Total trade payables 2,612 2,728 (1) Includes dues to subsidiaries 1,057 907 2.14 OTHER LIABILITIES (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Non-current Others Accrued defined benefit liability 79 74 Others 20 21 Total non - current other liabilities 99 95 Current Unearned revenue 6,756 6,713 Others Withholding taxes and others 2,544 2,433 Accrued defined benefit liability 2 3 Others 10 10 Total current other liabilities 9,312 9,159 Total other liabilities 9,411 9,254 As at As at As at Accrued expenses primarily relate to cost of technical sub-contractors, telecommunication charges, legal and professional charges, brand building expenses, overseas travel expenses, office maintenance and cost of third party software and hardware. 22
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2.15 PROVISIONS Provision for post-sales client support and other provisions (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Current Others Post-sales client support and other provisions 888 993 Total provisions 888 993 Provision for post sales client support and other provisions is included in cost of sales in the condensed standalone statement of profit and loss. 2.16 INCOME TAXES Income tax expense in the condensed statement of Profit and Loss comprises: (In ₹ crore) Particulars 2025 2024 Current taxes 2,761 2,686 Deferred taxes (215) (326) Income tax expense 2,546 2,360 Income tax expense for the three months ended June 30, 2025 and June 30, 2024 includes provisions (net of reversals) of ₹118 crore and provisions (net of reversals) of ₹45 crore, respectively. These provisions and reversals pertaining to prior periods are primarily on account of adjudication of certain disputed matters, upon filing of tax return and completion of assessments, across various jurisdictions. Deferred income tax for the three months ended June 30, 2025 and June 30, 2024 substantially relates to origination and reversal of temporary differences. The Company’s Advanced Pricing Arrangement (APA) with the Internal Revenue Service (IRS) for US branch income tax expired in March 2021. The Company has applied for renewal of APA and currently the US taxable income is based on the Company’s best estimate determined based on the expected value method. Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity or other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. Deferred income taxes are not provided on the undistributed earnings of subsidiaries and branches where it is expected that the earnings of the subsidiary or branch will not be distributed in the foreseeable future. The Company offsets current tax assets and current tax liabilities; deferred tax assets and deferred tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full financial year. Tax benefits of deductions earned on exercise of employee share options in excess of compensation charged to income are credited to equity. Three months ended June 30, Accounting Policy a. Post-sales client support b. Onerous contracts Accounting Policy As at A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The Company recognizes a reimbursement asset when, and only when, it is virtually certain that the reimbursement will be received if the Company settles the obligation. The Company provides its clients with a fixed-period post sales support on its fixed-price, fixed-timeframe contracts. Costs associated with such support services are accrued at the time related revenues are recorded in the Statement of Profit and Loss. The Company estimates such costs based on historical experience and estimates are reviewed on a periodic basis for any material changes in assumptions and likelihood of occurrence. Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognizes any impairment loss on the assets associated with that contract. Provision for post sales client support and other provisions majorly represents costs associated with providing sales support services which are accrued at the time of recognition of revenues and are expected to be utilized over a period of 1 year. 23
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2.17 REVENUE FROM OPERATIONS Accounting Policy Revenues from customer contracts are considered for recognition and measurement when the contract has been approved in writing, by the parties, to the contract, the parties to contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable. Revenue is recognized upon transfer of control of promised products or services (“performance obligations”) to customers in an amount that reflects the consideration the Company has received or expects to receive in exchange for these products or services (“transaction price”). When there is uncertainty as to collectability, revenue recognition is postponed until such uncertainty is resolved. In arrangements for software development and related services and maintenance services, by applying the revenue recognition criteria for each distinct performance obligation, the arrangements with customers generally meet the criteria for considering software development and related services as distinct performance obligations. For allocating the transaction price, the Company measures the revenue in respect of each performance obligation of a contract at its relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone selling price. In cases where the Company is unable to determine the standalone selling price, the Company uses the expected cost plus margin approach in estimating the standalone selling price. For software development and related services, the performance obligations are satisfied as and when the services are rendered since the customer generally obtains control of the work as it progresses. The Company derives revenues primarily from IT services comprising software development and related services, cloud and infrastructure services, maintenance, consulting and package implementation, licensing of software products and platforms across the Company’s core and digital offerings (together called as “software related services”). Contracts with customers are either on a time-and-material, unit of work, fixed-price or on a fixed- timeframe basis. The Company assesses the services promised in a contract and identifies distinct performance obligations in the contract. The Company allocates the transaction price to each distinct performance obligation based on the relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone selling price. In the absence of such evidence, the primary method used to estimate standalone selling price is the expected cost plus a margin, under which the Company estimates the cost of satisfying the performance obligation and then adds an appropriate margin based on similar services. Revenue on time-and-material and unit of work based contracts, are recognized as the related services are performed. Fixed price maintenance revenue is recognized ratably either on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period or ratably using a percentage of completion method when the pattern of benefits from the services rendered to the customer and Company’s costs to fulfil the contract is not even through the period of contract because the services are generally discrete in nature and not repetitive. Revenue from other fixed- price, fixed-timeframe contracts, where the performance obligations are satisfied over time is recognized using the percentage-of-completion method. Efforts or costs expended are used to determine progress towards completion as there is a direct relationship between input and productivity. Progress towards completion is measured as the ratio of costs or efforts incurred to date (representing work performed) to the estimated total costs or efforts. Estimates of transaction price and total costs or efforts are continuously monitored over the term of the contracts and are recognized in net profit in the period when these estimates change or when the estimates are revised. Revenues and the estimated total costs or efforts are subject to revision as the contract progresses. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract. The billing schedules agreed with customers include periodic performance based billing and / or milestone based progress billings. Revenues in excess of billing are classified as unbilled revenue while billing in excess of revenues are classified as contract liabilities (which we refer to as "unearned revenues"). Arrangements to deliver software products generally have three elements: license, implementation and Annual Technical Services (ATS). When implementation services are provided in conjunction with the licensing arrangement and the license and implementation have been identified as two distinct separate performance obligations, the transaction price for such contracts are allocated to each performance obligation of the contract based on their relative standalone selling prices. In the absence of standalone selling price for implementation, the Company uses the expected cost plus margin approach in estimating the standalone selling price. Where the license is required to be substantially customized as part of the implementation service the entire arrangement fee for license and implementation is considered to be a single performance obligation and the revenue is recognized using the percentage-of-completion method as the implementation is performed. Revenue from client training, support and other services arising due to the sale of software products is recognized as the performance obligations are satisfied. ATS revenue is recognized ratably on a straight line basis over the period in which the services are rendered. The Company’s contracts may include variable consideration including rebates, volume discounts and penalties. The Company includes variable consideration as part of transaction price when there is a basis to reasonably estimate the amount of the variable consideration and when it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Revenue from licenses where the customer obtains a “right to use” the licenses is recognized at the time the license is made available to the customer. Revenue from licenses where the customer obtains a “right to access” is recognized over the access period. Certain cloud and infrastructure services contracts include multiple elements which may be subject to other specific accounting guidance, such as leasing guidance. These contracts are accounted in accordance with such specific accounting guidance. In such arrangements where the Company is able to determine that hardware and services are distinct performance obligations, it allocates the consideration to these performance obligations on a relative standalone selling price basis. In the absence of standalone selling price, the Company uses the expected cost-plus margin approach in estimating the standalone selling price. When such arrangements are considered as a single performance obligation, revenue is recognized over the period and measure of progress is determined based on promise in the contract. 24
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Revenue from operations for the three months ended June 30, 2025 and June 30, 2024 is as follows: (In ₹ crore) Particulars 2025 2024 Revenue from software services 35,019 33,017 Revenue from products and platforms 256 266 Total revenue from operations 35,275 33,283 The Company presents revenues net of indirect taxes in its Statement of Profit and Loss. Contracts with customers includes subcontractor services or third-party vendor equipment or software in certain integrated services arrangements. In these types of arrangements, revenue from sales of third-party vendor products or services is recorded net of costs when the Company is acting as an agent between the customer and the vendor, and gross when the Company is the principal for the transaction. In doing so, the Company first evaluates whether it obtains control of the specified goods or services before they are transferred to the customer. The Company considers whether it is primarily responsible for fulfilling the promise to provide the specified goods or services, inventory risk, pricing discretion and other factors to determine whether it controls the specified goods or services and therefore, is acting as a principal or an agent. The incremental costs of obtaining a contract (i.e., costs that would not have been incurred if the contract had not been obtained) are recognized as an asset if the Company expects to recover them. Certain eligible, nonrecurring costs (e.g. set-up or transition or transformation costs) that do not represent a separate performance obligation are recognized as an asset when such costs (a) relate directly to the contract; (b) generate or enhance resources of the Company that will be used in satisfying the performance obligation in the future; and (c) are expected to be recovered. Capitalized contract costs relating to upfront payments to customers are amortized to revenue and other capitalized costs are amortized to expenses over the respective contract life on a systematic basis consistent with the transfer of goods or services to customer to which the asset relates. Capitalized costs are monitored regularly for impairment. Impairment losses are recorded when present value of projected remaining operating cash flows is not sufficient to recover the carrying amount of the capitalized costs. A contract modification is a change in the scope or price or both of a contract that is approved by the parties to the contract. A contract modification that results in the addition of distinct performance obligations are accounted for either as a separate contract if the additional services are priced at the standalone selling price or as a termination of the existing contract and creation of a new contract if they are not priced at the standalone selling price. If the modification does not result in a distinct performance obligation, it is accounted for as part of the existing contract on a cumulative catch-up basis. Three months ended June 30, Invoicing in excess of earnings are classified as unearned revenue. Trade receivables and unbilled revenues are presented net of impairment in the Balance Sheet. Trade receivables and Contract Balances The timing of revenue recognition, billings and cash collections results in receivables, unbilled revenue, and unearned revenue on the Company’s Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly or quarterly) or upon achievement of contractual milestones. The Company’s receivables are rights to consideration that are unconditional. Unbilled revenues comprising revenues in excess of billings from time and material contracts and fixed price maintenance contracts are classified as financial asset when the right to consideration is unconditional and is due only after a passage of time. Invoicing to the clients for other fixed price contracts is based on milestones as defined in the contract and therefore the timing of revenue recognition is different from the timing of invoicing to the customers. Therefore unbilled revenues for other fixed price contracts (contract asset) are classified as non- financial asset because the right to consideration is dependent on completion of contractual milestones. The percentage of revenue from fixed-price contracts for the three months ended June 30, 2025 and June 30, 2024 is 58% and 57%, respectively. 25
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2.18 OTHER INCOME, NET 2.18.1 Other income Accounting Policy Accounting Policy Government grant Other income for the three months ended June 30, 2025 and June 30, 2024 is as follows: (In ₹ crore) Particulars 2025 2024 Interest income on financial assets carried at amortized cost Tax free bonds and government bonds 26 30 Deposit with Bank and others 345 231 320 315 Income on investments carried at fair value through profit or loss Gain / (loss) on liquid mutual funds and other investments 63 96 Income on investments carried at fair value through other comprehensive income (2) - Income on investments carried at amortized cost 24 - (709) 46 Exchange gains/(losses) on translation of other assets and liabilities 752 (36) Miscellaneous income, net 63 39 Total other income 882 721 Exchange gains/(losses) on foreign currency forward and options contracts Three months ended June 30, Interest income on financial assets carried at fair value through other comprehensive income Non-convertible debentures, commercial papers, certificates of deposit and government securities Other income is comprised primarily of interest income, dividend income, gain / loss on investments and exchange gain/loss on forward and options contracts and on translation of foreign currency assets and liabilities. Interest income is recognized using the effective interest method. Dividend income is recognized when the right to receive payment is established. The functional currency of the Company is the Indian rupee. These financial statements are presented in Indian rupees (rounded off to crore; one crore equals ten million). Other Comprehensive Income, net of taxes includes translation differences on non-monetary financial assets measured at fair value at the reporting date, such as equities classified as financial instruments and measured at fair value through other comprehensive income (FVOCI). The Company recognizes government grants only when there is reasonable assurance that the conditions attached to them shall be complied with, and the grants will be received. Government grants related to assets are treated as deferred income and are recognized in the net profit in the Statement of Profit and Loss on a systematic and rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in the net profit in the Statement of Profit and Loss over the periods necessary to match them with the related costs which they are intended to compensate. Foreign-currency denominated monetary assets and liabilities are translated into the relevant functional currency at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are recognized in the condensed standalone Statement of Profit and Loss and reported within exchange gains/(losses) on translation of assets and liabilities, net, except when deferred in Other Comprehensive Income as qualifying cash flow hedges. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non- monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of the transaction. The related revenue and expense are recognized using the same exchange rate. Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled. Revenue, expense and cash-flow items denominated in foreign currencies are translated into the relevant functional currencies using the exchange rate in effect on the date of the transaction. Transactions and translations 2.18.2 Foreign currency Functional currency 26
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2.19 EXPENSES Accounting Policy (In ₹ crore) Particulars 2025 2024 Employee benefit expenses Salaries including bonus 16,787 15,752 Contribution to provident and other funds 575 510 Share based payments to employees (Refer to note 2.11) 210 188 Staff welfare 101 45 17,673 16,495 Cost of software packages and others For own use 523 462 Third party items bought for service delivery to clients 1,694 1,655 2,217 2,117 Other expenses Power and fuel 51 58 Brand and Marketing 342 310 Rates and taxes 61 94 Repairs and Maintenance 266 248 Consumables 7 7 Insurance 64 62 Provision for post-sales client support and others (185) (110) Commission to non-whole time directors 4 4 Impairment loss recognized / (reversed) under expected credit loss model 39 4 Auditor's remuneration Statutory audit fees 2 2 Contributions towards Corporate Social Responsibility 106 160 Others 91 95 848 934 The Company provides for gratuity, a defined benefit retirement plan ('the Gratuity Plan') covering eligible Indian employees of Infosys. The Gratuity Plan provides a lump- sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment with the Company. The Company contributes Gratuity liabilities to the Infosys Limited Employees' Gratuity Fund Trust (the Trust). Trustees administer contributions made to the Trusts and contributions are invested in a scheme with the Life Insurance Corporation of India as permitted by Indian law. The Company operates defined benefit pension plan in certain overseas jurisdictions, in accordance with the local laws. These plans are managed by third party fund managers. The plans provide for periodic payouts after retirement and / or for a lumpsum payment as set out in rules of each fund and includes death and disability benefits. The defined benefit plans require contributions which are based on a percentage of salary that varies depending on the age of the respective employees. Liabilities with regard to these defined benefit plans are determined by actuarial valuation, performed by an external actuary, at each Balance Sheet date using the projected unit credit method. These defined benefit plans expose the Company to actuarial risks, such as longevity risk, interest rate risk and market risk. 2.19.3 Superannuation 2.19.4 Compensated absences 2.19.2 Provident fund Three months ended June 30, The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability/(asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligation is recognized in other comprehensive income. The effect of any plan amendments is recognized in net profit in the Statement of Profit and Loss. Eligible employees of Infosys receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee's salary. The Company contributes a portion to the Infosys Limited Employees' Provident Fund Trust. The trust invests in specific designated instruments as permitted by Indian law. The remaining portion is contributed to the government administered pension fund. The rate at which the annual interest is payable to the beneficiaries by the trust is being administered by the Government of India. The Company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate. Certain employees of Infosys are participants in a defined contribution plan. The Company has no further obligations to the Plan beyond its monthly contributions which are periodically contributed to a trust fund, the corpus of which is invested with the Life Insurance Corporation of India. The Company has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an external actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur. 2.19.1 Gratuity and Pension 27
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2.20 EARNINGS PER EQUITY SHARE 2.21 CONTINGENT LIABILITIES AND COMMITMENTS (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Contingent liabilities: Claims against the Company, not acknowledged as debts(1) 1,805 1,772 [Amount paid to statutory authorities ₹3,801 crore (₹3,815 crore)] Commitments: 992 868 Other Commitments* 26 27 * Uncalled capital pertaining to investments Government Investigation Others 2.22 RELATED PARTY TRANSACTIONS Changes in Subsidiaries During the three months ended June 30, 2025, the following are the changes in the subsidiaries: - - - - - - - The U.S. Department of Justice (“DOJ”) is conducting an investigation regarding how the Company classified certain H-1B visa-recipient employees working for one of its clients in immigration documents filed with certain U.S. government authorities. The Company is engaged in discussions with the DOJ regarding its ongoing investigation and has commenced its own inquiry regarding the matter. At this stage, the Company is unable to predict the outcome of this matter, including whether such outcome could have a material adverse effect on the Company’s business and results of operations. Accounting Policy Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as at the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors. As at (1) As at June 30, 2025 and March 31, 2025, claims against the Company not acknowledged as debts in respect of income tax matters amounted to ₹1,323 crore and ₹1,290 crore, respectively. The claims against the Company primarily represent demands arising on completion of assessment proceedings under the Income Tax Act, 1961. These claims are on account of issues of disallowance of expenditure towards software being held as capital in nature, payments made to Associated Enterprises held as liable for withholding of taxes, among others. These matters are pending before various Income Tax Authorities and the Management including its tax advisors expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Company financial position and results of operations. Amount paid to statutory authorities against the tax claims amounted to ₹3,793 crore and ₹3,810 crore as at June 30, 2025 and March 31, 2025, respectively. Estimated amount of contracts remaining to be executed on capital contracts and not provided for (net of advances and deposits)(2) in-tech Automotive Engineering de. R L de. C V, a wholly-owned subsidiary of in-tech GmbH has been liquidated effective May 07, 2025. Accounting Policy Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. (2) Capital contracts primarily comprises of commitments for infrastructure facilities and computer equipments. Apart from the foregoing, the Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The Company’s management reasonably expects that such ordinary course legal actions, when ultimately concluded and determined, will not have a material and adverse effect on the Company’s results of operations or financial condition. Refer to the Company's Annual Report for the year ended March 31, 2025 for the full names and other details of the Company's subsidiaries and controlled trusts. Legal Proceedings Infosys Energy Consulting Services LLC , a wholly-owned subsidiary of Infosys Nova Holdings LLC was incorporated on April 16, 2025. On April 30, 2025, Infosys Australia Technology Service Pty Ltd, a wholly owned subsidiary of Infosys Singapore Pte. Limited, acquired 100% of voting interests in The Missing Link Automation Pty Ltd, The Missing Link Network Integration Pty Ltd and The Missing Link Security Pty Ltd along with its subsidiary The Missing Link Security Ltd Infosys Saudi Arabia LLC, a wholly-owned subsidiary of Infosys Limited was incorporated on April 21, 2025. Infosys Australia Technology Service Pty Ltd, a wholly-owned subsidiary of Infosys Singapore Pte. Limited was incorporated on April 23, 2025. On April 30, 2025, Infosys Nova Holdings LLC , a wholly-owned subsidiary of Infosys Limited, acquired 98.21% of partnership interests in MRE Consulting Ltd along with its subsidiary MRE Technology Services, LLC. The remaining 1.79% was acquired by Infosys Energy Consulting Services LLC , a Wholly-owned subsidiary of Infosys Nova Holdings LLC. On May 13, 2025, Infosys Singapore Pte Ltd diluted 2% stake of HPUS Co., Ltd to Mitsubishi Heavy Industries, Ltd. 28
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Transactions with key management personnel The table below describes the compensation to key management personnel which comprise directors and executive officers: (In ₹ crore) Particulars 2025 2024 30 28 4 4 Total 34 32 (2) Does not include post-employment benefits and other long-term benefits based on actuarial valuation as these are done for the Company as a whole. for and on behalf of the Board of Directors of Infosys Limited Nandan M. Nilekani Salil Parekh Bobby Parikh Chairman Chief Executive Officer Director DIN: 00041245 and Managing Director DIN: 00019437 DIN: 01876159 Jayesh Sanghrajka A.G.S. Manikantha Bengaluru Chief Financial Officer Company Secretary July 23, 2025 Membership No. A21918 Salaries and other short term employee benefits to whole-time directors and executive officers(1)(2) Commission and other benefits to non-executive / independent directors 2.23 SEGMENT REPORTING The Company publishes this financial statement along with the interim condensed consolidated financial statements. In accordance with Ind AS 108, Operating Segments, the Company has disclosed the segment information in the interim condensed consolidated financial statements. ⁽¹⁾ Total employee stock compensation expense for the three months ended June 30, 2025 and June 30, 2024 includes a charge of ₹17 crore and ₹18 crore, respectively, towards key management personnel. (Refer to note 2.11). Three months ended June 30, The Company’s related party transactions during the three months ended June 30, 2025 and March 31, 2025 and outstanding balances as at June 30, 2025 and March 31, 2025 are with its subsidiaries with whom the Company generally enters into transactions which are at arms length and in the ordinary course of business. 29
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Index Page No. Condensed Consolidated Balance Sheet ……………………………………………………………………………………………………………………..1 Condensed Consolidated Statement of Profit and Loss ……………………………………………………………………………………………………………………..2 Condensed Consolidated Statement of Changes in Equity ……………………………………………………………………………………………………………………..3 Condensed Consolidated Statement of Cash Flows ……………………………………………………………………………………………………………………..5 Overview and Notes to the Interim Condensed Consolidated Financial Statements 1. Overview 1.1 Company overview ……………………………………………………………………………………………………………………..7 1.2 Basis of preparation of financial statements ……………………………………………………………………………………………………………………..7 1.3 Basis of consolidation ……………………………………………………………………………………………………………………..7 1.4 Use of estimates and judgments ……………………………………………………………………………………………………………………..7 1.5 Critical accounting estimates and judgments……………………………………………………………………………………………………………………..7 2. Notes to the Interim Condensed Consolidated Financial Statements 2.1 Business Combinations ……………………………………………………………………………………………………………………………………………..9 2.2 Property, plant and equipment ……………………………………………………………………………………………………………………..10 2.3 Goodwill and intangible assets……………………………………………………………………………………………………………………..12 2.4 Investments ……………………………………………………………………………………………………………………………………………..13 2.5 Loans ……………………………………………………………………………………………………………………………………………..14 2.6 Other financial assets ……………………………………………………………………………………………………………………………………………..14 2.7 Trade receivables ……………………………………………………………………………………………………………………………………………..14 2.8 Cash and cash equivalents ……………………………………………………………………………………………………………………………………………..15 2.9 Other assets ……………………………………………………………………………………………………………………………………………..15 2.10 Financial instruments ……………………………………………………………………………………………………………………………………………..16 2.11 Equity ……………………………………………………………………………………………………………………………………………..20 2.12 Other financial liabilities ……………………………………………………………………………………………………………………………………………………..24 2.13 Other liabilities ……………………………………………………………………………………………………………………………………………..24 2.14 Provisions ……………………………………………………………………………………………………………………………………………..25 2.15 Income taxes ……………………………………………………………………………………………………………………………………………..26 2.16 Revenue from operations ……………………………………………………………………………………………………………………………………………..27 2.17 Other income, net ……………………………………………………………………………………………………………………………………………..29 2.18 Expenses ……………………………………………………………………………………………………………………………………………..30 2.19 Leases ……………………………………………………………………………………………………………………………………………..31 2.20 Earnings per equity share ……………………………………………………………………………………………………………………………………………..33 2.21 Contingent liabilities and commitments ……………………………………………………………………………… 33 2.22 Related party transactions ……………………………………………………………………………………………………………………………………………..35 2.23 Segment reporting ……………………………………………………………………………………………………………………………………………..36 2.24 Function wise classification of Condensed Consolidated Statement of Profit and Loss ……………………………………………………………………………………………………………………………………………..37 INFOSYS LIMITED AND SUBSIDIARIES Condensed Consolidated Financial Statements under Indian Accounting Standards (Ind AS) for the three months ended June 30, 2025 X
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INFOSYS LIMITED AND SUBSIDIARIES (In ₹ crore ) Condensed Consolidated Balance Sheets as at Note No. June 30, 2025 March 31, 2025 ASSETS Non-current assets Property, plant and equipment 2.2 11,611 11,778 Right-of-use assets 2.19 6,341 6,311 Capital work-in-progress 919 814 Goodwill 2.3 11,119 10,106 Other intangible assets 3,175 2,766 Financial assets Investments 2.4 10,643 11,059 Loans 2.5 12 16 Other financial assets 2.6 3,612 3,511 Deferred tax assets (net) 1,269 1,108 Income tax assets (net) 1,671 1,622 Other non-current assets 2.9 2,829 2,713 Total non-current assets 53,201 51,804 Current assets Financial assets Investments 2.4 7,606 12,482 Trade receivables 2.7 32,414 31,158 Cash and cash equivalents 2.8 27,459 24,455 Loans 2.5 239 249 Other financial assets 2.6 14,159 13,840 Income tax assets (net) 2,974 2,975 Other current assets 2.9 11,567 11,940 Total current assets 96,418 97,099 Total assets 149,619 148,903 EQUITY AND LIABILITIES Equity 2.11 2,074 2,073 Other equity 92,880 93,745 Total equity attributable to equity holders of the Company 94,954 95,818 Non-controlling interests 400 385 Total equity 95,354 96,203 Liabilities Non-current liabilities Financial Liabilities Lease liabilities 2.19 5,943 5,772 Other financial liabilities 2.12 2,176 2,141 Deferred tax liabilities (net) 1,750 1,722 Other non-current liabilities 2.13 192 215 Total non-current liabilities 10,061 9,850 Current liabilities Financial Liabilities Lease liabilities 2.19 2,542 2,455 Trade payables 3,616 4,164 Other financial liabilities 2.12 18,726 18,138 Other current liabilities 2.13 11,821 11,765 Provisions 2.14 1,434 1,475 Income tax liabilities (net) 6,065 4,853 Total current liabilities 44,204 42,850 Total equity and liabilities 149,619 148,903 The accompanying notes form an integral part of the interim condensed consolidated financial statements As per our report of even date attached for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm’s Registration No : 117366W/ W-100018 Vikas Bagaria Nandan M. Nilekani Salil Parekh Bobby Parikh Partner Chairman Chief Executive Officer Director Membership No. 060408 DIN: 00041245 and Managing Director DIN: 00019437 DIN: 01876159 Bengaluru Jayesh Sanghrajka A.G.S. Manikantha July 23, 2025 Chief Financial Officer Company Secretary Membership No. A21918 Equity share capital X 1
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INFOSYS LIMITED AND SUBSIDIARIES (In ₹ crore, except equity share and per equity share data) Note No. 2025 2024 Revenue from operations 2.16 42,279 39,315 Other income, net 2.17 1,042 838 Total income 43,321 40,153 Expenses Employee benefit expenses 2.18 22,847 20,934 Cost of technical sub-contractors 3,497 3,169 Travel expenses 516 478 Cost of software packages and others 2.18 3,746 3,455 Communication expenses 144 147 Consultancy and professional charges 464 445 Depreciation and amortization expenses 1,140 1,149 Finance cost 105 105 Other expenses 2.18 1,122 1,250 Total expenses 33,581 31,132 Profit before tax 9,740 9,021 Tax expense: Current tax 2.15 3,053 2,998 Deferred tax 2.15 (237) (351) Profit for the period 6,924 6,374 Other comprehensive income Items that will not be reclassified subsequently to profit or loss Remeasurement of the net defined benefit liability/asset, net (70) 20 Equity instruments through other comprehensive income, net 35 14 (35) 34 Items that will be reclassified subsequently to profit or loss Fair value changes on derivatives designated as cash flow hedge, net 6 (3) 1,019 (104) Fair value changes on investments, net 123 40 1,148 (67) Total other comprehensive income /(loss), net of tax 1,113 (33) Total comprehensive income for the period 8,037 6,341 Profit attributable to: Owners of the Company 6,921 6,368 Non-controlling interests 3 6 6,924 6,374 Total comprehensive income attributable to: Owners of the Company 8,024 6,337 Non-controlling interests 13 4 8,037 6,341 Earnings per equity share Equity shares of par value ₹5/- each Basic (₹) 16.70 15.38 Diluted (₹) 16.68 15.35 Basic (in shares) 2.20 4,143,971,592 4,140,272,627 Diluted (in shares) 2.20 4,150,497,004 4,148,077,672 The accompanying notes form an integral part of the interim condensed consolidated financial statements As per our report of even date attached for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm’s Registration No : 117366W/ W-100018 Vikas Bagaria Nandan M. Nilekani Salil Parekh Bobby Parikh Partner Chairman Chief Executive Officer Director Membership No. 060408 DIN: 00041245 and Managing Director DIN: 00019437 DIN: 01876159 Bengaluru Jayesh Sanghrajka A.G.S. Manikantha July 23, 2025 Chief Financial Officer Company Secretary Membership No. A21918 Condensed Consolidated Statement of Profit and Loss for the Exchange differences on translation of foreign operations Weighted average equity shares used in computing earnings per equity share Three months ended June 30, X 2
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INFOSYS LIMITED AND SUBSIDIARIES Condensed Consolidated Statement of Changes in Equity (In ₹ crore) Particulars Capital reserve Capital redemption reserve Securities Premium Retained earnings General reserve Share Options Outstanding Account Special Economic Zone Re- investment reserve (2) Other reserves (3) Equity instruments through other comprehensive income Exchange differences on translating the financial statements of a foreign operation Effective portion of Cash Flow Hedges Other items of other comprehensive income / (loss) Balance as at April 1, 2024 2,071 54 169 616 68,405 1,214 913 12,104 22 266 2,552 6 (276) 88,116 345 88,461 Changes in equity for the three months ended June 30, 2024 Profit for the period — — — — 6,368 — — — — — — — — 6,368 6 6,374 Remeasurement of the net defined benefit liability/asset, net* — — — — — — — — — — — — 20 20 — 20 Equity instruments through other comprehensive income, net* — — — — — — — — — 14 — — — 14 — 14 Fair value changes on derivatives designated as cash flow hedge, net* — — — — — — — — — — — (3) — (3) — (3) Exchange differences on translation of foreign operations — — — — — — — — — — (102) — — (102) (2) (104) Fair value changes on investments, net* — — — — — — — — — — — — 40 40 — 40 Total Comprehensive income for the period — — — — 6,368 — — — — 14 (102) (3) 60 6,337 4 6,341 Shares issued on exercise of employee stock options (Refer to Note 2.11) 1 — — 2 — — — — — — — — — 3 — 3 Employee stock compensation expense (Refer to Note 2.11) — — — — — — 208 — — — — — — 208 — 208 Transferred on account of exercise of stock options (Refer to note 2.11) — — — 220 — — (220) — — — — — — — — — Transferred on account of options not exercised — — — — — 18 (18) — — — — — — — — — Income tax benefit arising on exercise of stock options — — — — — — 2 — — — — — — 2 — 2 Transfer to legal reserve — — — — (2) — — — 2 — — — — — — Dividends (1) — — — — (11,597) — — — — — — — — (11,597) — (11,597) Transferred from Special Economic Zone Re-investment reserve to retained earnings — — — — 247 — — (247) — — — — — — — — Transferred from Special Economic Zone Re-investment reserve on utilization — — — — 104 — — (104) — — — — — — — — Balance as at June 30, 2024 2,072 54 169 838 63,525 1,232 885 11,753 24 280 2,450 3 (216) 83,069 349 83,418 OTHER EQUITY Reserves & Surplus Equity Share capital (1) Total equity attributable to equity holders of the Company Other comprehensive income Non- controlling interest Total equity X 3
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Condensed Consolidated Statement of Changes in Equity (contd.) (In ₹ crore) Particulars Capital reserve Capital redemption reserve Securities Premium Retained earnings General reserve Share Options Outstanding Account Special Economic Zone Re- investment reserve (2) Other reserves (3) Equity instruments through other comprehensive income Exchange differences on translating the financial statements of a foreign operation Effective portion of Cash Flow Hedges Other items of other comprehensive income / (loss) Balance as at April 1, 2025 2,073 54 169 1,091 78,627 1,412 1,068 8,298 24 285 2,904 (18) (169) 95,818 385 96,203 Changes in equity for the three months ended June 30, 2025 Profit for the period — — — — 6,921 — — — — — — — — 6,921 3 6,924 Remeasurement of the net defined benefit liability/asset, net* — — — — — — — — — — — — (70) (70) — (70) Equity instruments through other comprehensive income, net* — — — — — — — — — 35 — — — 35 — 35 Fair value changes on derivatives designated as cash flow hedge, net* — — — — — — — — — — — 6 — 6 — 6 Exchange differences on translation of foreign operations — — — — — — — — — — 1,009 — — 1,009 10 1,019 Fair value changes on investments, net* — — — — — — — — — — — — 123 123 — 123 Total Comprehensive income for the period — — — — 6,921 — — — — 35 1,009 6 53 8,024 13 8,037 Shares issued on exercise of employee stock options (Refer to Note 2.11) 1 — — — — — — — — — — — — 1 — 1 Employee stock compensation expense (Refer to Note 2.11) — — — — — — 231 — — — — — — 231 — 231 Transferred on account of exercise of stock options (Refer to Note 2.11) — — — 204 — — (204) — — — — — — — — — Transferred on account of options not exercised — — — — — 53 (53) — — — — — — — — — Income tax benefit arising on exercise of stock options — — — — — — 2 — — — — — — 2 — 2 Financial liability under option arrangements — — — — (10) — — — — — — — — (10) — (10) Changes in the controlling stake of a subsidiary — — — — 7 — — — — — — — — 7 2 9 Dividends (1) — — — — (9,119) — — — — — — — — (9,119) — (9,119) Transferred from Special Economic Zone Re-investment reserve to retained earnings — — — — 1,957 — — (1,957) — — — — — — — — Transferred from Special Economic Zone Re-investment reserve on utilization — — — — 120 — — (120) — — — — — — — — Balance as at June 30, 2025 2,074 54 169 1,295 78,503 1,465 1,044 6,221 24 320 3,913 (12) (116) 94,954 400 95,354 * Net of tax (1) Net of treasury shares The accompanying notes form an integral part of the interim condensed consolidated financial statements. As per our report of even date attached for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm’s Registration No : 117366W/ W-100018 Vikas Bagaria Nandan M. Nilekani Salil Parekh Bobby Parikh Partner Chairman Chief Executive Officer Director Membership No. 060408 DIN: 00041245 and Managing Director DIN: 00019437 DIN: 01876159 Bengaluru Jayesh Sanghrajka A.G.S. Manikantha July 23, 2025 Chief Financial Officer Company Secretary Membership No. A21918 Reserves & Surplus OTHER EQUITY (3) Under the Swiss Code of Obligation, few subsidiaries of Infosys Consulting are required to appropriate a certain percentage of the annual profit to legal reserve which may be used only to cover losses or for measures designed to sustain the Company through difficult times, to prevent unemployment or to mitigate its consequences. Equity Share capital (1) Total equity attributable to equity holders of the Company Other comprehensive income Non- controlling interest Total equity (2) The Special Economic Zone Re-investment Reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act, 1961. The reserve should be utilized by the Group for acquiring new plant and machinery for the purpose of its business in the terms of the Sec 10AA(2) of the Income Tax Act, 1961. 4
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INFOSYS LIMITED AND SUBSIDIARIES Condensed Consolidated Statement of Cash Flows Accounting policy (In ₹ crore) Particulars Note No. 2025 2024 Cash flow from operating activities Profit for the period 6,924 6,374 Income tax expense 2.15 2,816 2,647 Depreciation and amortization 1,140 1,149 (821) (665) Finance cost 105 106 Impairment loss recognized / (reversed) under expected credit loss model 34 (3) Exchange differences on translation of assets and liabilities, net 285 23 Stock compensation expense 236 211 Provision for post sale client support (177) (108) Other adjustments 332 62 Changes in assets and liabilities Trade receivables and unbilled revenue (1,945) (499) Loans, other financial assets and other assets 411 (422) Trade payables (673) (271) Other financial liabilities, other liabilities and provisions 839 (389) Cash generated from operations 9,506 8,215 Income taxes (paid) / received (1,874) 841 Net cash generated by operating activities 7,632 9,056 Cash flows from investing activities (865) (455) Deposits placed with corporation (395) (335) Redemption of deposits placed with Corporation 127 120 1,077 853 2.1 (632) (124) Other receipts 12 1 Liquid mutual fund units (17,237) (16,989) Certificates of deposit (2,734) (1,440) Commercial Papers (149) (2,226) Non-convertible debentures (1,652) (1,051) Other Investments (12) (6) Proceeds on sale of Investments Tax free bonds and government bonds 403 — Liquid mutual funds units 15,746 15,975 Certificates of deposit 4,831 2,820 Commercial Papers 3,850 7,135 Non-convertible debentures 600 490 Government securities 1,995 200 Net cash generated / (used in) from investing activities 4,965 4,968 Payments to acquire Investments Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Group are segregated. The Group considers all highly liquid investments that are readily convertible to known amounts of cash to be cash equivalents. Interest and dividend received Expenditure on property, plant and equipment and intangibles Adjustments to reconcile net profit to net cash provided by operating activities: Interest and dividend income Payment towards acquisition of business, net of cash acquired Three months ended June 30, X 5
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Cash flows from financing activities Payment of lease liabilities (706) (576) Payment of dividends (9,120) — Shares issued on exercise of employee stock options 1 3 Other payments (52) (118) Net cash used in financing activities (9,877) (691) Net increase / (decrease) in cash and cash equivalents 2,720 13,333 Effect of exchange rate changes on cash and cash equivalents 284 (62) Cash and cash equivalents at the beginning of the period 2.8 24,455 14,786 Cash and cash equivalents at the end of the period 2.8 27,459 28,057 Supplementary information: Restricted cash balance 2.8 407 398 27,459 28,057 — 11,625 2.8 27,459 16,432 The accompanying notes form an integral part of the interim condensed consolidated financial statements As per our report of even date attached for Deloitte Haskins & Sells LLP for and on behalf of the Board of Directors of Infosys Limited Chartered Accountants Firm’s Registration No : 117366W/ W-100018 Vikas Bagaria Nandan M. Nilekani Salil Parekh Bobby Parikh Partner Chairman Chief Executive Officer Director Membership No. 060408 DIN: 00041245 and Managing Director DIN: 00019437 DIN: 01876159 Bengaluru Jayesh Sanghrajka A.G.S. Manikantha July 23, 2025 Chief Financial Officer Company Secretary Membership No. A21918 Closing cash and cash equivalents as per Consolidated Statement of Cash Flows Less: Earmarked bank balance for dividend Closing cash and cash equivalents as per Consolidated Balance Sheet 6
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INFOSYS LIMITED AND SUBSIDIARIES Overview and notes to the Interim Condensed Consolidated Financial Statements 1. Overview 1.1 Company overview Infosys Limited ('the Company' or Infosys) provides consulting, technology, outsourcing and next-generation digital services, to enable clients to execute strategies for their digital transformation. Infosys strategic objective is to build a sustainable organization that remains relevant to the agenda of clients, while creating growth opportunities for employees and generating profitable returns for investors. Infosys strategy is to be a navigator for our clients as they ideate, plan and execute on their journey to a digital future. Infosys together with its subsidiaries and controlled trusts is hereinafter referred to as the "Group". The Company is a public limited company incorporated and domiciled in India and has its registered office at Electronics city, Hosur Road, Bengaluru 560100, Karnataka, India. The Company has its primary listings on the BSE Ltd. and National Stock Exchange of India Limited. The Company’s American Depositary Shares (ADS) representing equity shares are listed on the New York Stock Exchange (NYSE). The Group's interim condensed consolidated financial statements are approved for issue by the Company's Board of Directors on July 23, 2025. 1.2 Basis of preparation of financial statements These interim condensed consolidated financial statements are prepared in compliance with Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting , under the historical cost convention on accrual basis except for certain financial instruments which are measured at fair values and defined benefit liability/(asset) which is recognised at the present value of defined benefit obligation less fair value of plan assets, the provisions of the Companies Act, 2013 ('the Act') and guidelines issued by the Securities and Exchange Board of India (SEBI). Accordingly, these interim condensed consolidated financial statements do not include all the information required for a complete set of financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report for the year ended March 31, 2025. The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The material accounting policy information used in preparation of the audited interim condensed consolidated financial statements have been discussed in the respective notes. 1.3 Basis of consolidation Infosys consolidates entities which it owns or controls. The interim condensed consolidated financial statements comprise the financial statements of the Company, its controlled trusts and its subsidiaries. Control exists when the parent has power over the entity, is exposed, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns by using its power over the entity. Power is demonstrated through existing rights that give the ability to direct relevant activities, those which significantly affect the entity's returns. Subsidiaries are consolidated from the date control commences until the date control ceases. The financial statements of the Group companies are consolidated on a line-by-line basis and intra-group balances and transactions including unrealized gain / loss from such transactions are eliminated upon consolidation. These financial statements are prepared by applying uniform accounting policies in use at the Group. Non-controlling interests which represent part of the net profit or loss and net assets of subsidiaries that are not, directly or indirectly, owned or controlled by the Company, are excluded. 1.4 Use of estimates and judgments The preparation of the interim condensed consolidated financial statements in conformity with Ind AS requires the Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and reported amounts of revenues and expenses during the period. The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in Note no. 1.5 . Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates and judgements are reflected in the interim condensed consolidated financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the interim condensed consolidated financial statements. 1.5 Critical accounting estimates and judgments a. Revenue recognition The Group’s contracts with customers include promises to transfer multiple products and services to a customer. Revenues from customer contracts are considered for recognition and measurement when the contract has been approved, in writing, by the parties to the contract, the parties to contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable. The Group assesses the services promised in a contract and identifies distinct performance obligations in the contract. Identification of distinct performance obligations to determine the deliverables and the ability of the customer to benefit independently from such deliverables, and allocation of transaction price to these distinct performance obligations involves significant judgment. X 7
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Fixed price maintenance revenue is recognized ratably on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period. Revenue from fixed price maintenance contract is recognized ratably using a percentage of completion method when the pattern of benefits from the services rendered to the customer and the Group’s costs to fulfil the contract is not even through the period of the contract because the services are generally discrete in nature and not repetitive. The use of method to recognize the maintenance revenues requires judgment and is based on the promises in the contract and nature of the deliverables. The Group uses the percentage-of-completion method in accounting for other fixed-price contracts. Use of the percentage-of-completion method requires the Group to determine the actual efforts or costs expended to date as a proportion of the estimated total efforts or costs to be incurred. Efforts or costs expended have been used to measure progress towards completion as there is a direct relationship between input and productivity. The estimation of total efforts or costs involves significant judgment and is assessed throughout the period of the contract to reflect any changes based on the latest available information. Contracts with customers includes subcontractor services or third-party vendor equipment or software in certain integrated services arrangements. In these types of arrangements, revenue from sales of third-party vendor products or services is recorded net of costs when the Group is acting as an agent between the customer and the vendor, and gross when the Group is the principal for the transaction. In doing so, the Group first evaluates whether it obtains control of the specified goods or services before they are transferred to the customer. The Group considers whether it is primarily responsible for fulfilling the promise to provide the specified goods or services, inventory risk, pricing discretion and other factors to determine whether it controls the specified goods or services and therefore, is acting as a principal or an agent. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract. b. Income taxes The Group's two major tax jurisdictions are India and the United States, though the Company also files tax returns in other overseas jurisdictions. Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid / recovered for uncertain tax positions. In assessing the realizability of deferred income tax assets, the Management considers whether some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax assets are deductible, the Management believes that the Group will realize the benefits of those deductible differences. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced (Refer to Notes 2.15). c. Business combinations and intangible assets Business combinations are accounted for using Ind AS 103, Business Combinations. Ind AS 103 requires us to fair value identifiable intangible assets and contingent consideration to ascertain the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. These valuations are conducted by external valuation experts. Estimates are required to be made in determining the value of contingent consideration, value of option arrangements and intangible assets. These measurements are based on information available at the acquisition date and are based on expectations and assumptions that have been deemed reasonable by the Management (Refer to Note 2.1 and 2.3.2) . d. Property, plant and equipment Property, plant and equipment represent a significant proportion of the asset base of the Group. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Group's assets are determined by the Management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology (Refer to Note 2.2). e. Impairment of Goodwill Goodwill is tested for impairment on an annual basis and whenever there is an indication that the recoverable amount of a cash generating unit (CGUs) is less than its carrying amount. For the impairment test, goodwill is allocated to the CGU or groups of CGUs which benefit from the synergies of the acquisition and which represent the lowest level at which goodwill is monitored for internal management purposes. The recoverable amount of CGUs is determined based on higher of value-in-use and fair value less cost to sell. Key assumptions in the cash flow projections are prepared based on current economic conditions and comprises estimated long term growth rates, weighted average cost of capital and estimated operating margins (Refer to note 2.3). 8
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2. Notes to the Interim Condensed Consolidated Financial Statements 2.1 BUSINESS COMBINATIONS Accounting policy Acquisition (In ₹ crore) Component Acquiree's carrying amount Fair value adjustments Purchase price allocated Net Assets (1) 116 - 116 Intangible assets: Customer related# - 222 222 Vendor relationship# - 55 55 Brand# - 20 20 - (46) (46) Total 116 251 367 Goodwill 444 Total purchase price 811 2) The Missing Link Security Pty. Ltd., The Missing Link Security Limited and The Missing Link Automation Pty. Ltd. (collectively known as "The Missing Link"), a leading Cybersecurity service provider headquartered in Australia on April 30, 2025, which is expected to further strengthen the Group's capabilities in the cybersecurity sector and bolster its presence in the fast growing Australian Market. The provisional purchase price is allocated to assets acquired and liabilities assumed based upon determination of fair values at the date of acquisition as follows: Deferred tax liabilities on intangible assets Business combinations have been accounted for using the acquisition method under the provisions of Ind AS 103, Business Combinations. The interest of non-controlling shareholders is initially measured either at fair value or at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets. The choice of measurement basis is made on an acquisition-by-acquisition basis. Subsequent to acquisition, the carrying amount of non- controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity of subsidiaries. The payments related to options issued by the Group over the non-controlling interests in its subsidiaries are accounted as financial liabilities and initially recognized at the estimated present value of gross obligations. Such options are subsequently measured at fair value in order to reflect the amount payable under the option at the date at which it becomes exercisable. In the event that the option expires unexercised, the liability is derecognized. During the three months ended June 30, 2025 the Group, completed two business combinations by acquiring 100% partnership interests/voting interests in: 1) MRE Consulting Ltd., a leading Energy and business consulting services company, headquartered in Texas, U.S. on April 30, 2025, which is expected to bring newer capabilities for the Group in trading and risk management, especially in the energy sector. Business combinations between entities under common control is accounted for at carrying value of the assets acquired and liabilities assumed in the Group's consolidated financial statements. The purchase price in an acquisition is measured at the fair value of the assets transferred, equity instruments issued and liabilities incurred or assumed at the date of acquisition, which is the date on which control is transferred to the Group. The purchase price also includes the fair value of any contingent consideration. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value on the date of acquisition. Contingent consideration is remeasured at fair value at each reporting date and changes in the fair value of the contingent consideration are recognized in the interim condensed Consolidated Statement of Profit and Loss. (1) Includes cash and cash equivalents acquired of ₹102 crore. # The estimated useful life is around 1 year to 7 years Fair value of trade receivables acquired is ₹194 crore as of acquisition date and as of June 30, 2025, the amounts are substantially collected. Transaction costs that the Group incurs in connection with a business combination such as finder’s fees, legal fees, due diligence fees, and other professional and consulting fees are expensed as incurred. The transaction costs of ₹34 crore related to the acquisition have been included under administrative expenses in the Consolidated Statement of Profit and Loss for the quarter ended June 30, 2025. The excess of the purchase consideration paid over the fair value of assets acquired has been attributed to goodwill. The primary items that generated this goodwill are the value of the acquired assembled workforce and estimated synergies, neither of which qualify as an intangible asset. Goodwill amounting to ₹79 crore is expected to be deductible for tax purposes. The total purchase consideration of ₹811 crore includes upfront cash consideration of ₹741 crore and contingent consideration with an estimated fair value of ₹70 crore as on the date of acquisition. At the acquisition date, the key inputs used in determination of the fair value of contingent consideration are the probabilities assigned towards achievement of financial targets and discount rates ranging from 2% - 3%. The undiscounted value of contingent consideration as of June 30, 2025 was approximately ₹73 crore. Additionally, these acquisitions have retention bonus and management incentives payable to the employees of the acquiree over 2-3 years, subject to their continuous employment with the Group and achievement of financial targets for the respective years. Retention bonus and management incentives are recognized in employee benefit expenses in the Consolidated Statement of Profit and Loss over the period of service. XXX 9
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2.2 PROPERTY, PLANT AND EQUIPMENT Accounting policy Buildings (1) 22-25 years Plant and machinery (1)(2) 5 years Office equipment 5 years Computer equipment (1) 3-5 years Furniture and fixtures (1) 5 years Vehicles(1) 5 years Leasehold improvements Lower of useful life of the asset or lease term (2) Includes Solar plant with a useful life of 25 years The changes in the carrying value of property, plant and equipment for the three months ended June 30, 2025 are as follows: (In ₹ crore) Particulars Land - Freehold Buildings (1) Plant and machinery Office Equipment Computer equipment Furniture and fixtures Leasehold Improvements Vehicles Total Gross carrying value as at April 1, 2025 1,479 11,721 3,461 1,628 9,306 2,340 1,307 48 31,290 Additions 10 3 23 36 207 27 29 1 336 Additions on Business Combinations (Refer to note 2.1) — — — — 3 — — — 3 Deletions* — (5) (2) (8) (270) (5) (2) (1) (293) Translation difference — 18 2 5 32 9 13 — 79 Gross carrying value as at June 30, 2025 1,489 11,737 3,484 1,661 9,278 2,371 1,347 48 31,415 Accumulated depreciation as at April 1, 2025 — (5,358) (2,813) (1,337) (7,013) (1,929) (1,019) (43) (19,512) Depreciation — (111) (44) (29) (267) (40) (31) (1) (523) Accumulated depreciation on deletions* — 1 2 8 259 4 2 1 277 Translation difference — (5) (2) (3) (19) (5) (12) — (46) Accumulated depreciation as at June 30, 2025 — (5,473) (2,857) (1,361) (7,040) (1,970) (1,060) (43) (19,804) Carrying value as at April 1, 2025 1,479 6,363 648 291 2,293 411 288 5 11,778 Carrying value as at June 30, 2025 1,489 6,264 627 300 2,238 401 287 5 11,611 The changes in the carrying value of property, plant and equipment for the three months ended June 30, 2024 are as follows: (In ₹ crore) Particulars Land - Freehold Buildings (1) Plant and machinery Office Equipment Computer equipment Furniture and fixtures Leasehold Improvements Vehicles Total Gross carrying value as at April 1, 2024 1,432 11,770 3,428 1,528 8,611 2,326 1,447 45 30,587 Additions — 15 21 16 178 12 15 1 258 Additions on Business Combinations — — — — 1 — — — 1 Deletions* — (38) (3) (6) (164) (26) (48) (1) (286) Translation difference — (4) (1) — (9) (3) (1) — (18) Gross carrying value as at June 30, 2024 1,432 11,743 3,445 1,538 8,617 2,309 1,413 45 30,542 Accumulated depreciation as at April 1, 2024 — (4,921) (2,630) (1,269) (6,380) (1,837) (1,138) (42) (18,217) Depreciation — (111) (57) (28) (327) (52) (45) (1) (621) Accumulated depreciation on deletions* — 5 3 5 163 26 48 1 251 Translation difference — 1 1 1 6 2 1 — 12 Accumulated depreciation as at June 30, 2024 — (5,026) (2,683) (1,291) (6,538) (1,861) (1,134) (42) (18,575) Carrying value as at April 1, 2024 1,432 6,849 798 259 2,231 489 309 3 12,370 Carrying value as at June 30, 2024 1,432 6,717 762 247 2,079 448 279 3 11,967 Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by the Management. The charge in respect of periodic depreciation is derived at after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The Group depreciates property, plant and equipment over their estimated useful lives using the straight-line method. The estimated useful lives of assets are as follows: (1) Based on technical evaluation, the Management believes that the useful lives as given above best represent the period over which the Management expects to use these assets. Hence, the useful lives for these assets is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013 Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end. The useful lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not ready to use before such date are disclosed under ‘Capital work-in-progress’. Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Group and the cost of the item can be measured reliably. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset. Impairment Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. If such assets are considered to be impaired, the impairment to be recognized in the Consolidated Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the Consolidated Statement of Profit and Loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated depreciation) had no impairment loss been recognized for the asset in prior years. X 10
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The aggregate depreciation has been included under depreciation and amortization expense in the interim condensed Consolidated Statement of Profit and Loss. * During the three months ended June 30, 2025 and June 30, 2024, certain assets which were not in use having gross book value of ₹247 crore (net book value: Nil) and ₹126 crore (net book value: Nil) respectively, were retired. (1) Buildings include ₹250/- being the value of five shares of ₹50/- each in Mittal Towers Premises Co-operative Society Limited. Repairs and maintenance costs are recognized in the Consolidated Statement of Profit and Loss when incurred. Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (“the Rules”), the Company was required to transfer its CSR capital assets installed prior to January 2021. Towards this the Company had incorporated a subsidiary ‘Infosys Green Forum’ (IGF) under Section 8 of the Companies Act, 2013. During the year ended March 31, 2022, the Company had completed the transfer of assets upon obtaining the required approvals from regulatory authorities, as applicable. During fiscal 2024, the application filed by IGF for regularization of the provisional registration was rejected and registration cancelled vide order dated March 26, 2024 by Income Tax Commissioner (Exemption). IGF has filed an appeal before Income Tax Tribunal against the order. 11
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2.3 GOODWILL AND OTHER INTANGIBLE ASSETS 2.3.1 Goodwill Accounting policy Impairment Following is a summary of changes in the carrying amount of goodwill: (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Carrying value at the beginning 10,106 7,303 Goodwill on acquisitions (Refer to note 2.1) 444 2,593 Translation differences 569 210 Carrying value at the end 11,119 10,106 2.3.2 Intangible Assets Accounting policy Impairment Research costs are expensed as incurred. Software product development costs are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Group has an intention and ability to complete and use or sell the software and the costs can be measured reliably. The costs which can be capitalized include the cost of material, direct labor, overhead costs that are directly attributable to prepare the asset for its intended use. Intangible assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs. If such assets are considered to be impaired, the impairment to be recognized in the Consolidated Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the Consolidated Statement of Profit and Loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization) had no impairment loss been recognized for the asset in prior years. As at For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the CGU or groups of CGUs, which benefit from the synergies of the acquisition. Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry, and known technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and useful lives are reviewed periodically including at each financial year end. Goodwill represents the purchase consideration in excess of the Group's interest in the net fair value of identifiable assets, liabilities and contingent liabilities of the acquired entity. When the net fair value of the identifiable assets, liabilities and contingent liabilities acquired exceeds purchase consideration, the fair value of net assets acquired is reassessed and the bargain purchase gain is recognized in capital reserve. Goodwill is measured at cost less accumulated impairment losses. Goodwill is tested for impairment on an annual basis and whenever there is an indication that the recoverable amount of a cash generating unit (CGU) is less than its carrying amount. For the impairment test, goodwill is allocated to the CGU or groups of CGUs which benefit from the synergies of the acquisition and which represents the lowest level at which goodwill is monitored for internal management purposes. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. Impairment occurs when the carrying amount of a CGU including the goodwill, exceeds the estimated recoverable amount of the CGU. The recoverable amount of a CGU is the higher of its fair value less cost to sell and its value-in-use. Value-in-use is the present value of future cash flows expected to be derived from the CGU. Key assumptions in the cash flow projections are prepared based on current economic conditions and includes estimated long term growth rates, weighted average cost of capital and estimated operating margins. 12
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2.4 INVESTMENTS (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Non-current Investments Unquoted Investments carried at fair value through other comprehensive income Preference securities 167 167 Equity instruments 2 2 169 169 Investments carried at fair value through profit or loss Target maturity fund units 476 465 Equity and Preference securities 25 25 Others (1) 213 196 714 686 Government bonds 1 16 Tax free bonds 1,100 1,465 1,101 1,481 Investments carried at fair value through other comprehensive income Non convertible debentures 4,440 3,320 Equity securities 97 57 Government securities 4,122 5,346 8,659 8,723 Total non-current investments 10,643 11,059 Current Investments Unquoted Investments carried at fair value through profit or loss Liquid mutual fund units 3,510 1,957 3,510 1,957 Investments carried at fair value through other comprehensive income Commercial Paper — 3,641 Certificates of deposit 1,470 3,504 1,470 7,145 Quoted Government bonds 31 15 Tax free bonds 156 154 187 169 Investments carried at fair value through other comprehensive income Non convertible debentures 1,516 1,549 Government securities 923 1,662 2,439 3,211 Total current investments 7,606 12,482 Total investments 18,249 23,541 12,386 13,584 Market value of quoted investments (including interest accrued), current 2,629 3,369 Market value of quoted investments (including interest accrued), non current 9,888 10,392 Aggregate amount of unquoted investments 5,863 9,957 1,288 1,650 Investments carried at fair value through other comprehensive income 12,737 19,248 Investments carried at fair value through profit or loss 4,224 2,643 (1) Uncalled capital commitments outstanding as at June 30, 2025 and March 31, 2025 was ₹115 crore and ₹122 crore, respectively. Refer to Note 2.10 for Accounting policies on Financial Instruments. Method of fair valuation: (In ₹ crore) Class of investment Method June 30, 2025 March 31, 2025 Quoted price 3,510 1,957 Quoted price 476 465 Quoted price and market observable inputs 1,408 1,812 Quoted price and market observable inputs 5,956 4,869 Quoted price and market observable inputs 5,045 7,008 Market observable inputs — 3,641 Market observable inputs 1,470 3,504 Quoted price 97 57 25 25 169 169 213 196 Total 18,369 23,703 Note: Certain quoted investments are classified as Level 2 in the absence of active market for such investments. Others - carried at fair value through profit or loss As at Aggregate amount of quoted investments Fair value as at Investments carried at amortized cost Quoted Investments carried at amortized cost Discounted cash flows method, Market multiples method, Option pricing model Discounted cash flows method, Market multiples method, Option pricing model Investments carried at amortized cost Unquoted equity and preference securities - carried at fair value through other comprehensive income Liquid mutual fund units - carried at fair value through profit or loss Target maturity fund units - carried at fair value through profit or loss Tax free bonds and government bonds - carried at amortized cost Non-convertible debentures - carried at fair value through other comprehensive income Government securities - carried at fair value through other comprehensive income Commercial Papers - carried at fair value through other comprehensive income Certificates of deposit - carried at fair value through other comprehensive income Quoted Equity securities - carried at fair value through other comprehensive income Unquoted equity and preference securities - carried at fair value through profit or loss Discounted cash flows method, Market multiples method, Option pricing model X 13
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2.5 LOANS (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Non Current Loans considered good - Unsecured Other loans Loans to employees 12 16 12 16 Loans credit impaired - Unsecured Other loans Loans to employees 3 3 Less: Allowance for credit impairment (3) (3) — — Total non-current loans 12 16 Current Loans considered good - Unsecured Other loans Loans to employees 239 249 Total current loans 239 249 Total loans 251 265 2.6 OTHER FINANCIAL ASSETS (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Non Current Security deposits (1) 281 273 Unbilled revenues (1)# 2,029 2,031 Restricted deposits (1)* 143 82 Net investment in lease(1) 1,134 1,106 Others (1) 25 19 Total non-current other financial assets 3,612 3,511 Current Security deposits (1) 67 65 Restricted deposits (1)* 3,156 2,949 Unbilled revenues (1)# 8,569 8,183 Interest accrued but not due (1) 520 842 Foreign currency forward and options contracts (2) (3) 69 192 Net investment in lease(1) 1,359 1,139 Others (1) 419 470 Total current other financial assets 14,159 13,840 Total other financial assets 17,771 17,351 (1) Financial assets carried at amortized cost 17,702 17,159 (2) Financial assets carried at fair value through other comprehensive income 29 28 (3) Financial assets carried at fair value through profit or loss 40 164 2.7 TRADE RECEIVABLES (In ₹ crore) June 30, 2025 March 31, 2025 Current Trade Receivable considered good - Unsecured 32,943 31,670 Less: Allowance for expected credit loss 529 512 Trade Receivable considered good - Unsecured 32,414 31,158 Trade Receivable - credit impaired - Unsecured 227 206 Less: Allowance for credit impairment 227 206 Trade Receivable - credit impaired - Unsecured — — Total trade receivables 32,414 31,158 Particulars As at As at As at * Restricted deposits represent deposits with financial institutions to settle employee related obligations as and when they arise during the normal course of business. # Classified as financial asset as right to consideration is unconditional and is due only after a passage of time. 14
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2.8 CASH AND CASH EQUIVALENTS (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Balances with banks In current and deposit accounts 27,459 24,455 Cash on hand — — Total cash and cash equivalents 27,459 24,455 44 45 25 75 2.9 OTHER ASSETS (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Non-current Capital advances 195 208 Advances other than capital advances Others Withholding taxes and others 544 534 Unbilled revenues # 217 201 Defined benefit plan assets 212 297 Prepaid expenses 394 282 Deferred Contract Cost Cost of obtaining a contract 315 312 Cost of fulfillment 952 879 Total non-current other assets 2,829 2,713 Current Advances other than capital advances Payment to vendors for supply of goods 272 413 Others Unbilled revenues # 5,048 4,668 Withholding taxes and others 2,245 2,841 Prepaid expenses 3,059 3,080 Deferred Contract Cost Cost of obtaining a contract 272 343 Cost of fulfillment 543 504 Other receivables 128 91 Total current other assets 11,567 11,940 Total other assets 14,396 14,653 Withholding taxes and others primarily consist of input tax credits and VAT recoverable from tax authorities. # Classified as non financial asset as the contractual right to consideration is dependent on completion of contractual milestones. Cash and cash equivalents as at June 30, 2025 and March 31, 2025 include restricted cash and bank balances of ₹407 crore and ₹424 crore respectively. The restrictions are primarily on account of bank balances held by irrevocable trusts controlled by the company. The deposits maintained by the Group with banks and financial institutions comprise of time deposits, which can be withdrawn by the Group at any point without prior notice or penalty on the principal. As at As at Balances with banks in unpaid dividend accounts Deposit with more than 12 months maturity X X 15
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2.10 FINANCIAL INSTRUMENTS Accounting policy 2.10.1 Initial recognition 2.10.2 Subsequent measurement a. Non-derivative financial instruments (iv) Financial liabilities b. Derivative financial instruments 2.10.3 Derecognition of financial instruments This category includes derivative financial assets or liabilities which are not designated as hedges. Although the Group believes that these derivatives constitute hedges from an economic perspective, they may not qualify for hedge accounting under Ind AS 109, Financial Instruments. Any derivative that is either not designated as hedge, or is so designated but is ineffective as per Ind AS 109, is categorized as a financial asset or financial liability, at fair value through profit or loss. Derivatives not designated as hedges are recognized initially at fair value and attributable transaction costs are recognized in net profit in the Consolidated Statement of Profit and Loss when incurred. Subsequent to initial recognition, these derivatives are measured at fair value through profit or loss and the resulting exchange gains or losses are included in other income. Assets/ liabilities in this category are presented as current assets/current liabilities if they are either held for trading or are expected to be realized within 12 months after the Balance Sheet date. Primarily, the Group designates certain foreign exchange forward and options contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash transactions. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedging reserve. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the net profit in the interim condensed Consolidated Statement of Profit and Loss. If the hedging instrument no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the forecasted transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the net profit in the Consolidated Statement of Profit and Loss upon the occurrence of the related forecasted transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified to net profit in the interim condensed Consolidated Statement of Profit and Loss. (ii) Cash flow hedge The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Group's Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires. (iii) Financial assets carried at fair value through profit or loss (FVTPL) (i) Financial assets or financial liabilities, carried at fair value through profit or loss. Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration and financial liability under option arrangements recognized in a business combination which is subsequently measured at fair value through profit or loss. A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss. The Group holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for such contracts is generally a bank. (i) Financial assets carried at amortized cost (ii) Financial assets carried at fair value through other comprehensive income (FVOCI) The Group recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date. A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Group has made an irrevocable election for certain investments which are classified as equity instruments to present the subsequent changes in fair value in other comprehensive income based on its business model. X 16
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2.10.4 Fair value of financial instruments 2.10.5 Impairment Financial instruments by category (In ₹ crore) Particulars Amortized cost Total carrying value Total fair value Designated upon initial recognition Mandatory Equity instruments designated upon initial recognition Mandatory Assets: Cash and cash equivalents (Refer to Note 2.8) 27,459 — — — — 27,459 27,459 Investments (Refer to Note 2.4) Equity and preference securities — 25 — 266 — 291 291 Tax free bonds and government bonds 1,288 — — — — 1,288 1,408 (1) Liquid mutual fund units — — 3,510 — — 3,510 3,510 Target maturity fund units — — 476 — — 476 476 Non convertible debentures — — — — 5,956 5,956 5,956 Government securities — — — — 5,045 5,045 5,045 Certificates of deposit — — — — 1,470 1,470 1,470 Other investments — — 213 — — 213 213 Trade receivables (Refer to Note 2.7) 32,414 — — — — 32,414 32,414 Loans (Refer to Note 2.5) 251 — — — — 251 251 Other financials assets (Refer to Note 2.6) (3) 17,702 — 40 — 29 17,771 17,710 (2) Total 79,114 25 4,239 266 12,500 96,144 96,203 Liabilities: Trade payables 3,616 — — — — 3,616 3,616 Lease liabilities (Refer to Note 2.19) 8,485 — — — — 8,485 8,485 Financial Liability under option arrangements (Refer to Note 2.12) — — 729 — — 729 729 Other financial liabilities (Refer to Note 2.12) 16,372 — 371 — 25 16,768 16,768 Total 28,473 — 1,100 — 25 29,598 29,598 (1) On account of fair value changes including interest accrued (2) Excludes interest accrued on tax free bonds and government bonds carried at amortized cost of ₹61 crore (3) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones Refer to table 'Financial instruments by category' below for the disclosure on carrying value and fair value of financial assets and liabilities. For financial assets and liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the carrying amounts approximates fair value due to the short maturity of these instruments. The Group recognizes loss allowances using the expected credit loss (ECL) model for the financial assets and unbilled revenue which are not fair valued through profit or loss. Loss allowance for trade receivables and unbilled revenues with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, ECLs are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The Group determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Group considers current and anticipated future economic conditions relating to industries the Group deals with and the countries where it operates. The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recorded is recognized as an impairment loss or gain in Consolidated Statement of Profit and Loss. The carrying value and fair value of financial instruments by categories as at June 30, 2025 are as follows: In determining the fair value of its financial instruments, the Group uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, option pricing model, market multiples, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized. Financial assets/liabilities at fair value through OCI Financial assets/ liabilities at fair value through profit or loss 17
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The carrying value and fair value of financial instruments by categories as at March 31, 2025 were as follows: (In ₹ crore) Particulars Amortized cost Total carrying value Total fair value Designated upon initial recognition Mandatory Equity instruments designated upon initial recognition Mandatory Assets: Cash and cash equivalents (Refer to Note 2.8) 24,455 — — — — 24,455 24,455 Investments (Refer to Note 2.4) Equity and preference securities — 25 — 226 — 251 251 Tax free bonds and government bonds 1,650 — — — — 1,650 1,812 (1) Liquid mutual fund units — — 1,957 — — 1,957 1,957 Target maturity fund units — — 465 — — 465 465 Non convertible debentures — — — — 4,869 4,869 4,869 Government securities — — — — 7,008 7,008 7,008 Commercial paper — — — — 3,641 3,641 3,641 Certificates of deposit — — — — 3,504 3,504 3,504 Other investments — — 196 — — 196 196 Trade receivables (Refer to Note 2.7) 31,158 — — — — 31,158 31,158 Loans (Refer to Note 2.5) 265 — — — — 265 265 Other financials assets (Refer to Note 2.6) (3) 17,159 — 164 — 28 17,351 17,271 (2) Total 74,687 25 2,782 226 19,050 96,770 96,852 Liabilities: Trade payables 4,164 — — — — 4,164 4,164 Lease liabilities (Refer to Note 2.19) 8,227 — — — — 8,227 8,227 Financial Liability under option arrangements (Refer to Note 2.12) — — 667 — — 667 667 Other financial liabilities (Refer to Note 2.12) 16,511 — 61 — 33 16,605 16,605 Total 28,902 — 728 — 33 29,663 29,663 (1) On account of fair value changes including interest accrued (2) Excludes interest accrued on tax free bonds and government bonds carried at amortized cost of ₹80 crore (3) Excludes unbilled revenue on contracts where the right to consideration is dependent on completion of contractual milestones Fair value hierarchy Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). (In ₹ crore) Particulars Level 1 Level 2 Level 3 Assets Investments (Refer to note 2.4) Investments in liquid mutual fund units 3,510 3,510 — — Investments in target maturity fund units 476 476 — — Investments in tax free bonds 1,376 814 562 — Investments in government bonds 32 32 — — Investments in non convertible debentures 5,956 4,809 1,147 — Investment in government securities 5,045 4,973 72 — Investments in equity instruments 99 97 — 2 Investments in preference securities 192 — — 192 Investments in certificates of deposit 1,470 — 1,470 — Other investments 213 — — 213 Others 69 — 69 — Liabilities 292 — 292 — 729 — — 729 Liability towards contingent consideration (Refer to Note 2.12) (2) 104 — — 104 (2) Discount rate ranges from 3% to 6% Financial liability under option arrangements (Refer to Note 2.12) (1) (1) Discount rate ranges from 9% to 15% During the three months ended June 30, 2025, government securities and non convertible debentures of ₹1,184 crore was transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs. Derivative financial instruments - loss (Refer to Note 2.12) Derivative financial instruments - gain (Refer to Note 2.6) Fair value measurement at end of the reporting period using Financial assets/ liabilities at fair value through profit or loss Financial assets/liabilities at fair value through OCI As at June 30, 2025 Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at June 30, 2025 is as follows: For trade receivables, trade payables, other assets and payables maturing within one year from the Balance Sheet date, the carrying amounts approximate the fair value due to the short maturity of these instruments. 18
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The fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March 31, 2025 was as follows: (In ₹ crore) Particulars Level 1 Level 2 Level 3 Assets Investments (Refer to note 2.4) Investments in liquid mutual fund units 1,957 1,957 — — Investments in target maturity fund units 465 465 — — Investments in tax free bonds 1,781 1,227 554 — Investments in government bonds 31 31 — — Investments in non convertible debentures 4,869 4,869 — — Investment in government securities 7,008 6,972 36 — Investments in equity instruments 59 57 — 2 Investments in preference securities 192 — — 192 Investments in commercial paper 3,641 — 3,641 — Investments in certificates of deposit 3,504 — 3,504 — Other investments 196 — — 196 Others 192 — 192 — Liabilities 63 — 63 — 667 — — 667 31 — — 31 A one percentage point change in the unobservable inputs used in fair valuation of Level 3 assets and liabilities does not have a significant impact in its value. Majority of investments of the Group are fair valued based on Level 1 or Level 2 inputs. These investments primarily include investment in liquid mutual fund units, target maturity fund units, tax-free bonds, certificates of deposit, commercial papers, treasury bills, government securities, non-convertible debentures, quoted bonds issued by government and quasi-government organizations. The Group invests after considering counterparty risks based on multiple criteria including Tier I capital, Capital Adequacy Ratio, Credit Rating, Profitability, NPA levels and Deposit base of banks and financial institutions. These risks are monitored regularly as per Group's risk management program. Fair value measurement at end of the reporting period using As at March 31, 2025 During the year ended March 31, 2025, government securities and non convertible debentures of ₹297 crore was transferred from Level 2 to Level 1 of fair value hierarchy, since these were valued based on quoted price. Further, non convertible debentures and tax free bonds of ₹554 crore were transferred from Level 1 to Level 2 of fair value hierarchy, since these were valued based on market observable inputs. (1) Discount rate ranges from 9% to 15% Liability towards contingent consideration (Refer to Note 2.12) (2) Derivative financial instruments - gain (Refer to Note 2.6) Derivative financial instruments - loss (Refer to Note 2.12) Financial liability under option arrangements (Refer to Note 2.12) (1) (2) Discount rate - 6% 19
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2.11 EQUITY Accounting policy Ordinary Shares Treasury Shares Description of reserves Retained earnings Retained earnings represent the amount of accumulated earnings of the Group. Securities premium Share options outstanding account Other components of equity Currency translation reserve Cash flow hedge reserve EQUITY SHARE CAPITAL (In ₹ crore, except as otherwise stated) June 30, 2025 March 31, 2025 Authorized Equity shares, ₹5 par value 480,00,00,000 (480,00,00,000) equity shares 2,400 2,400 Issued, Subscribed and Paid-Up Equity shares, ₹5 par value 2,074 2,073 4,145,174,219 (414,36,07,528) equity shares fully paid-up (1) 2,074 2,073 Note: Forfeited shares amounted to ₹1,500 (₹1,500) (1) Net of treasury shares 90,98,409 (96,55,927) The Company has only one class of shares referred to as equity shares having a par value of ₹5/-. Each holder of equity shares is entitled to one vote per share. The equity shares represented by American Depositary Shares (ADS) carry similar rights to voting and dividends as the other equity shares. Each ADS represents one underlying equity share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company in proportion to the number of equity shares held by the shareholders, after distribution of all preferential amounts. However, no such preferential amounts exist currently, other than the amounts held by irrevocable controlled trusts. For irrevocable controlled trusts, the corpus would be settled in favor of the beneficiaries. Ordinary shares are classified as equity share capital. Incremental costs directly attributable to the issuance of new ordinary shares, share options and buyback are recognized as a deduction from equity, net of any tax effects. When any entity within the Group purchases the company's ordinary shares, the consideration paid including any directly attributable incremental cost is presented as a deduction from total equity, until they are cancelled, sold or reissued. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is transferred to / from securities premium. The amount received in excess of the par value of equity shares has been classified as securities premium. Amounts have been utilized for bonus issue and share buyback from share premium account. As atParticulars Capital Redemption Reserve In accordance with section 69 of the Indian Companies Act, 2013, the Company creates capital redemption reserve equal to the nominal value of the shares bought back as an appropriation from general reserve / retained earnings. Other components of equity include currency translation, remeasurement of net defined benefit liability / asset, equity instruments fair valued through other comprehensive income, changes on fair valuation of investments and changes in fair value of derivatives designated as cash flow hedges, net of taxes. Special Economic Zone Re-investment reserve The Special Economic Zone Re-investment reserve has been created out of the profit of the eligible SEZ unit in terms of the provisions of Sec 10AA (1)(ii) of Income Tax Act, 1961. The reserve should be utilized by the Company for acquiring new plant and machinery for the purpose of its business in terms of the provisions of the Sec 10AA (2) of the Income Tax Act, 1961. The share options outstanding account is used to record the fair value of equity-settled share based payment transactions with employees. The amounts recorded in share options outstanding account are transferred to securities premium upon exercise of stock options and transferred to general reserve on account of stock options not exercised by employees. The exchange differences arising from the translation of financial statements of foreign subsidiaries with functional currency other than Indian rupees is recognized in other comprehensive income and is presented within equity. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedging reserve. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the interim condensed Consolidated Statement of Profit and Loss upon the occurrence of the related forecasted transaction. X 20
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There are no voting, dividend or liquidation rights to the holders of options issued under the company's share option plans For details of shares reserved for issue under the employee stock option plan of the Company refer to the note below. (In ₹ crore, except as stated otherwise) Particulars Number of shares Amount Number of shares Amount As at the beginning of the period 414,36,07,528 2,073 413,99,50,635 2,071 Add: Shares issued on exercise of employee stock options 15,66,691 1 36,56,893 2 As at the end of the period 414,51,74,219 2,074 414,36,07,528 2,073 Capital allocation policy Dividend The amount of per share dividend recognized as distribution to equity shareholders in accordance with Companies Act 2013 is as follows: (in ₹) Particulars 2025 2024 Final dividend for fiscal 2025 22.00 — Special dividend for fiscal 2024 — 8.00 Final dividend for fiscal 2024 — 20.00 Employee Stock Option Plan (ESOP): Accounting policy 2015 Stock Incentive Compensation Plan (the 2015 Plan) : On March 31, 2016, pursuant to the approval by the shareholders through postal ballot, the Board was authorized to introduce, offer, issue and allot share-based incentives to eligible employees of the Company and its subsidiaries under the 2015 Stock Incentive Compensation Plan. The maximum number of shares under the 2015 Plan shall not exceed 2,40,38,883 equity shares (this includes 1,12,23,576 equity shares which are held by the trust towards the 2011 Plan as at March 31, 2016). These instruments will generally vest over a period of 4 years. The plan numbers mentioned above are further adjusted with the September 2018 bonus issue. The equity settled and cash settled RSUs and stock options would vest generally over a period of 4 years and shall be exercisable within the period as approved by the Nomination and Remuneration Committee (NARC). The exercise price of the RSUs will be equal to the par value of the shares and the exercise price of the stock options would be the market price as on the date of grant. Controlled trust holds 90,98,409 and 96,55,927 shares as at June 30, 2025 and March 31, 2025, respectively, under the 2015 Plan. Out of these shares, 200,000 equity shares each have been earmarked for welfare activities of the employees as at June 30, 2025 and March 31, 2025. Infosys Expanded Stock Ownership Program 2019 (the 2019 Plan) : On June 22, 2019 pursuant to approval by the shareholders in the Annual General Meeting, the Board has been authorized to introduce, offer, issue and provide share-based incentives to eligible employees of the Company and its subsidiaries under the 2019 Plan. The maximum number of shares under the 2019 Plan shall not exceed 5,00,00,000 equity shares. To implement the 2019 Plan, up to 4,50,00,000 equity shares may be issued by way of secondary acquisition of shares by Infosys Expanded Stock Ownership Trust. The Restricted Stock Units (RSUs) granted under the 2019 Plan shall vest based on the achievement of defined annual performance parameters as determined by the administrator (Nomination and Remuneration Committee). The performance parameters will be based on a combination of relative Total Shareholder Return (TSR) against selected industry peers and certain broader market domestic and global indices and operating performance metrics of the Company as decided by administrator. Each of the above performance parameters will be distinct for the purposes of calculation of quantity of shares to vest based on performance. These instruments will generally vest between a minimum of 1 to maximum of 3 years from the grant date. The Company’s objective when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders, issue new shares or buy back issued shares. As of June 30, 2025, the Company has only one class of equity shares and has no debt. Consequent to the above capital structure there are no externally imposed capital requirements. The final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company's Board of Directors. Income tax consequences of dividends on financial instruments classified as equity will be recognized according to where the entity originally recognized those past transactions or events that generated distributable profits. The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute dividend after deducting applicable taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates. Three months ended June 30, The Board of Directors in their meeting held on April 17, 2025 recommended a final dividend of ₹22/- per equity share for the financial year ended March 31, 2025. The same was approved by the shareholders at the Annual General Meeting (AGM) of the Company held on June 25, 2025 which resulted in a net cash outflow of ₹9,119 crore, excluding dividend paid on treasury shares. The final dividend was paid on June 30, 2025. The Group recognizes compensation expense relating to share-based payments in net profit based on estimated fair values of the awards on the grant date. The estimated fair value of awards is recognized as an expense in the statement of profit and loss on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was in-substance, multiple awards with a corresponding increase to share options outstanding account. Effective fiscal 2025, the Company expects to continue its policy of returning approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback/ special dividends subject to applicable laws and requisite approvals, if any. Under this policy, the Company expects to progressively increase its annual dividend per share (excluding special dividend if any). Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under IFRS. Dividend and buyback include applicable taxes. As at June 30, 2025 As at March 31, 2025 The reconciliation of the number of shares outstanding and the amount of share capital as at June 30, 2025 and March 31, 2025 are as follows: 21
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The following is the summary of grants during three months ended June 30, 2025 and June 30, 2024: 2025 2024 2015 Plan: RSU Equity settled RSUs Key Management Personnel (KMP) 277,077 295,168 Employees other than KMP 5,000 96,490 282,077 391,658 2015 Plan: Employee Stock Options (ESOPs) Equity settled RSUs Key Management Personnel (KMP) 237,370 - Employees other than KMP 5,412,790 - 5,650,160 - Cash settled RSUs Key Management Personnel (KMP) - - Employees other than KMP 108,180 - 108,180 - Total Grants under 2015 Plan 6,040,417 391,658 2019 Plan: RSU Equity settled RSUs Key Management Personnel (KMP) 66,366 70,699 Employees other than KMP - 6,848 66,366 77,547 Total Grants under 2019 Plan 66,366 77,547 Notes on grants to KMP: CEO & MD Under the 2015 Plan: Under the 2019 Plan: The break-up of employee stock compensation expense is as follows: (in ₹ crore) Particulars 2025 2024 Granted to: KMP 17 18 Employees other than KMP 219 193 Total (1) 236 211 5 3 Particulars Three months ended June 30, The Board, on April 17, 2025, based on the recommendations of the Nomination and Remuneration Committee, approved performance-based grant of RSUs amounting to ₹10 crore for fiscal 2026 under the 2019 Plan. These RSUs will vest based on achievement of certain performance targets. Accordingly, 66,366 performance based RSU’s were granted effective May 2, 2025. Though the annual time based grants and annual performance equity TSR grant for the remaining employment term ending on March 31, 2027 have not been granted as of June 30, 2025, since the service commencement date precedes the grant date, the company has recorded employment stock compensation expense in accordance with Ind AS 102, Share based payment. The grant date for this purpose in accordance with Ind AS 102, Share based payment is July 01, 2022. The Board, on April 17, 2025, based on the recommendations of the Nomination and Remuneration Committee approved the following grants for fiscal 2026. In accordance with such approval the following grants were made effective May 2, 2025. - 2,30,621 performance-based RSUs (Annual performance equity grant) of fair value of ₹34.75 crore. These RSUs will vest in line with the employment agreement based on achievement of certain performance targets. - 13,273 performance-based grant of RSUs (Annual performance equity ESG grant) of fair value of ₹2 crore. These RSUs will vest in line with the employment agreement based on achievement of certain environment, social and governance milestones as determined by the Board. - 33,183 performance-based grant of RSUs (Annual performance Equity TSR grant) of fair value of ₹5 crore . These RSUs will vest in line with the employment agreement based on Company’s performance on cumulative relative TSR over the years and as determined by the Board. (1) Cash-settled stock compensation expense included in the above Three months ended June 30, 22
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The fair value of each equity settled award is estimated on the date of grant using the following assumptions: Particulars Fiscal 2026- Equity Shares-RSU Fiscal 2026- Equity Shares- ESOP Fiscal 2026- ADR-ESOP Fiscal 2025- Equity Shares- RSU Fiscal 2025- ADS-RSU Weighted average share price (₹) / ($ ADS) 1,507 1,554 17.93 1,414 16.87 Exercise price (₹) / ($ ADS) 5 1,554 17.93 5 0.07 Expected volatility (%) 24-25 25-28 26-30 23-26 23-28 Expected life of the option (years) 1-4 3-7 3-7 1-4 1-4 Expected dividends (%) 2-3 2-3 2-3 2-3 2-3 Risk-free interest rate (%) 6 6 4 7 4-5 1,355 390 4.09 1,298 15.45 The expected life of the RSU/ESOP is estimated based on the vesting term and contractual term of the RSU/ESOP, as well as expected exercise behavior of the employee who receives the RSU/ESOP. Weighted average fair value as on grant date (₹) / ($ ADS) For options granted in The fair value of the awards are estimated using the Black-Scholes Model for time and non-market performance based options and Monte Carlo simulation model is used for TSR based options. The inputs to the model include the share price at date of grant, exercise price, expected volatility, expected dividends, expected term and the risk free rate of interest. Expected volatility during the expected term of the options is based on historical volatility of the observed market prices of the Company's publicly traded equity shares during a period equivalent to the expected term of the options. Expected volatility of the comparative company have been modelled based on historical movements in the market prices of their publicly traded equity shares during a period equivalent to the expected term of the options. Correlation coefficient is calculated between each peer entity and the indices as a whole or between each entity in the peer group. 23
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2.12 OTHER FINANCIAL LIABILITIES (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Non-current Others Accrued compensation to employees (1) 13 12 Accrued expenses (1) 1,859 1,890 Compensated absences 106 99 Financial liability under option arrangements (2) # 121 115 Payable for acquisition of business - Contingent consideration (2) 72 20 Other Payables (1)(4) 5 5 Total non-current other financial liabilities 2,176 2,141 Current Unpaid dividends (1) 44 45 Others Accrued compensation to employees (1) 4,423 4,924 Accrued expenses (1) 9,346 8,467 Payable for acquisition of business - Contingent consideration (2) 32 11 Payable by controlled trusts (1) 173 173 Compensated absences 3,299 2,908 Financial liability under option arrangements (2) # 608 552 Foreign currency forward and options contracts (2) (3) 292 63 Capital creditors (1) 99 520 Other payables (1)(4) 410 475 Total current other financial liabilities 18,726 18,138 Total other financial liabilities 20,902 20,279 (1) Financial liability carried at amortized cost 16,372 16,511 (2) Financial liability carried at fair value through profit or loss 1,100 728 (3) Financial liability carried at fair value through other comprehensive income 25 33 2.13 OTHER LIABILITIES (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Non-current Others Accrued defined benefit liability 120 115 Others 72 100 Total non-current other liabilities 192 215 Current Unearned revenue 8,527 8,492 Others Withholding taxes and others 3,271 3,256 Accrued defined benefit liability 11 6 Others 12 11 Total current other liabilities 11,821 11,765 Total other liabilities 12,013 11,980 As at As at (4) The Group entered into financing arrangements with a third party towards technology assets taken over by the Group from a customer as a part of transformation project which was not considered as distinct goods or services as the control related to those assets was not transferred to the Group in accordance with Ind AS 115 - Revenue from contract with customers. As at June 30, 2025 and March 31, 2025, the financial liability pertaining to such arrangements amounts to ₹63 crore and ₹67 crore, respectively. Accrued expenses primarily relate to cost of technical sub-contractors, telecommunication charges, legal and professional charges, brand building expenses, overseas travel expenses, office maintenance and cost of third party software and hardware. # Represents liability related to options issued by the Group over the non-controlling interests in its subsidiaries X 24
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2.14 PROVISIONS Accounting policy a. Post sales client support b. Onerous contracts Provision for post-sales client support and other provisions: (In ₹ crore) Particulars June 30, 2025 March 31, 2025 Current Others Post-sales client support and others 1,280 1,325 154 150 Total provisions 1,434 1,475 Provision for post sales client support and other provisions is included in cost of sales in the condensed consolidated statement of profit and loss. As at A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.The Group recognizes a reimbursement asset when, and only when, it is virtually certain that the reimbursement will be received if the Group settles the obligation. The Group provides its clients with a fixed-period post sales support on its fixed-price, fixed-timeframe contracts. Costs associated with such support services are accrued at the time related revenues are recorded and included in Consolidated Statement of Profit and Loss. The Group estimates such costs based on historical experience and estimates are reviewed on a periodic basis for any material changes in assumptions and likelihood of occurrence. Provisions for onerous contracts are recognized when the expected benefits to be derived by the Group from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established the Group recognizes any impairment loss on the assets associated with that contract. Provision for post-sales client support and other provisions majorly represents costs associated with providing sales support services which are accrued at the time of recognition of revenues and are expected to be utilized over a period of 1 year. Other provisions pertaining to settlement (refer to note 2.21.2) 25
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Accounting policy (In ₹ crore) Particulars 2025 2024 Current taxes 3,053 2,998 Deferred taxes (237) (351) Income tax expense 2,816 2,647 2.15 INCOME TAXES The Company’s Advanced Pricing Arrangement (APA) with the Internal Revenue Service (IRS) for US branch income tax expired in March 2021. The Company has applied for renewal of APA and currently the US taxable income is based on the Company’s best estimate determined based on the expected value method. Deferred income tax for the three months ended June 30, 2025 and June 30, 2024 substantially relates to origination and reversal of temporary differences. Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the Consolidated Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity or other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. Deferred income taxes are not provided on the undistributed earnings of subsidiaries and branches where it is expected that the earnings of the subsidiary or branch will not be distributed in the foreseeable future. The Group offsets current tax assets and current tax liabilities; deferred tax assets and deferred tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full financial year. Tax benefits of deductions earned on exercise of employee share options in excess of compensation charged to income are credited to equity. Income tax expense in the Consolidated Statement of Profit and Loss comprises: Income tax expense for the three months ended June 30, 2025 and June 30, 2024 includes provisions (net of reversals) of ₹116 crore and provisions (net of reversals) of ₹60 crore, respectively. These provisions and reversals pertaining to prior periods are primarily on account of adjudication of certain disputed matters, upon filing of tax return and completion of assessments, across various jurisdictions. Three months ended June 30, XXX 26
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2.16 REVENUE FROM OPERATIONS Accounting policy The Group’s contracts may include variable consideration including rebates, volume discounts and penalties. The Group includes variable consideration as part of transaction price when there is a basis to reasonably estimate the amount of the variable consideration and when it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Revenue from licenses where the customer obtains a “right to use” the licenses is recognized at the time the license are made available to the customer. Revenue from licenses where the customer obtains a “right to access” is recognized over the access period. Contracts with customers includes subcontractor services or third-party vendor equipment or software in certain integrated services arrangements. In these types of arrangements, revenue from sales of third-party vendor products or services is recorded net of costs when the Group is acting as an agent between the customer and the vendor, and gross when the Group is the principal for the transaction. In doing so, the Group first evaluates whether it obtains control of the specified goods or services before they are transferred to the customer. The Group considers whether it is primarily responsible for fulfilling the promise to provide the specified goods or services, inventory risk, pricing discretion and other factors to determine whether it controls the specified goods or services and therefore, is acting as a principal or an agent. The Group derives revenues primarily from IT services comprising software development and related services, cloud and infrastructure services, maintenance, consulting and package implementation, licensing of software products and platforms across the Group’s core and digital offerings (together called as “software related services”) and business process management services. Contracts with customers are either on a time-and-material, unit of work, fixed-price or on a fixed-timeframe basis. Revenues from customer contracts are considered for recognition and measurement when the contract has been approved in writing by the parties, to the contract, the parties to contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable. Revenue is recognized upon transfer of control of promised products or services (“performance obligations”) to customers in an amount that reflects the consideration the Group has received or expects to receive in exchange for these products or services (“transaction price”). When there is uncertainty as to collectability, revenue recognition is postponed until such uncertainty is resolved. The billing schedules agreed with customers include periodic performance based billing and / or milestone based progress billings. Revenues in excess of billing are classified as unbilled revenue while billing in excess of revenues are classified as contract liabilities (which we refer to as unearned revenues). The Group assesses the services promised in a contract and identifies distinct performance obligations in the contract. The Group allocates the transaction price to each distinct performance obligation based on the relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone selling price. In the absence of such evidence, the primary method used to estimate standalone selling price is the expected cost plus a margin, under which the Group estimates the cost of satisfying the performance obligation and then adds an appropriate margin based on similar services. Revenue on time-and-material and unit of work based contracts, are recognized as the related services are performed. Fixed price maintenance revenue is recognized ratably either on a straight-line basis when services are performed through an indefinite number of repetitive acts over a specified period or ratably using a percentage of completion method when the pattern of benefits from the services rendered to the customer and the Group’s costs to fulfil the contract is not even through the period of contract because the services are generally discrete in nature and not repetitive. Revenue from other fixed-price, fixed-timeframe contracts, where the performance obligations are satisfied over time is recognized using the percentage-of-completion method. Efforts or costs expended are used to determine progress towards completion as there is a direct relationship between input and productivity. Progress towards completion is measured as the ratio of costs or efforts incurred to date (representing work performed) to the estimated total costs or efforts. Estimates of transaction price and total costs or efforts are continuously monitored over the term of the contracts and are recognized in net profit in the period when these estimates change or when the estimates are revised. Revenues and the estimated total costs or efforts are subject to revision as the contract progresses. Provisions for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the estimated efforts or costs to complete the contract. In arrangements for software development and related services and maintenance services, by applying the revenue recognition criteria for each distinct performance obligation, the arrangements with customers generally meet the criteria for considering software development and related services as distinct performance obligations. For allocating the transaction price, the Group measures the revenue in respect of each performance obligation of a contract at its relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone selling price. In cases where the Group is unable to determine the standalone selling price, the Group uses the expected cost plus margin approach in estimating the standalone selling price. For software development and related services, the performance obligations are satisfied as and when the services are rendered since the customer generally obtains control of the work as it progresses. Arrangements to deliver software products generally have three elements: license, implementation and Annual Technical Services (ATS).When implementation services are provided in conjunction with the licensing arrangement and the license and implementation have been identified as two distinct separate performance obligations, the transaction price for such contracts are allocated to each performance obligation of the contract based on their relative standalone selling prices. In the absence of standalone selling price for implementation, the Group uses the expected cost plus margin approach in estimating the standalone selling price. Where the license is required to be substantially customized as part of the implementation service the entire arrangement fee for license and implementation is considered to be a single performance obligation and the revenue is recognized using the percentage-of-completion method as the implementation is performed. Revenue from client training, support and other services arising due to the sale of software products is recognized as the performance obligations are satisfied. ATS revenue is recognized ratably on a straight line basis over the period in which the services are rendered. Certain cloud and infrastructure services contracts include multiple elements which may be subject to other specific accounting guidance, such as leasing guidance. These contracts are accounted in accordance with such specific accounting guidance. In such arrangements where the Group is able to determine that hardware and services are distinct performance obligations, it allocates the consideration to these performance obligations on a relative standalone selling price basis. In the absence of standalone selling price, the Group uses the expected cost-plus margin approach in estimating the standalone selling price. When such arrangements are considered as a single performance obligation, revenue is recognized over the period and measure of progress is determined based on promise in the contract. A contract modification is a change in the scope or price or both of a contract that is approved by the parties to the contract. A contract modification that results in the addition of distinct performance obligations are accounted for either as a separate contract if the additional services are priced at the standalone selling price or as a termination of the existing contract and creation of a new contract if they are not priced at the standalone selling price. If the modification does not result in a distinct performance obligation, it is accounted for as part of the existing contract on a cumulative catch-up basis. X 27
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(In ₹ crore) Particulars 2025 2024 Revenue from software services 40,331 37,496 Revenue from products and platforms 1,948 1,819 Total revenue from operations 42,279 39,315 Products & platforms (In ₹ crore) Particulars 2025 2024 North America 23,867 23,143 Europe 13,337 11,186 India 1,219 1,227 Rest of the world 3,856 3,759 Total 42,279 39,315 Trade Receivables and Contract Balances Trade receivables and unbilled revenues are presented net of impairment in the consolidated Balance Sheet. The timing of revenue recognition, billings and cash collections results in receivables, unbilled revenue, and unearned revenue on the Group’s Consolidated Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly or quarterly) or upon achievement of contractual milestones. Invoicing in excess of earnings are classified as unearned revenue. The percentage of revenue from fixed-price contracts for each of the three months ended June 30, 2025 and June 30, 2024 is 54%. The Group’s receivables are rights to consideration that are unconditional. Unbilled revenues comprising revenues in excess of billings from time and material contracts and fixed price maintenance contracts are classified as financial asset when the right to consideration is unconditional and is due only after a passage of time. Invoicing to the clients for other fixed price contracts is based on milestones as defined in the contract and therefore the timing of revenue recognition is different from the timing of invoicing to the customers. Therefore unbilled revenues for other fixed price contracts (contract asset) are classified as non-financial asset because the right to consideration is dependent on completion of contractual milestones. * Geographical revenue is based on the domicile of customer The Group presents revenues net of indirect taxes in its Consolidated Statement of Profit and Loss. For the three months ended June 30, 2025 and June 30, 2024: The incremental costs of obtaining a contract (i.e., costs that would not have been incurred if the contract had not been obtained) are recognized as an asset if the Group expects to recover them. Certain eligible, nonrecurring costs (e.g. set-up or transition or transformation costs) that do not represent a separate performance obligation are recognized as an asset when such costs (a) relate directly to the contract; (b) generate or enhance resources of the Group that will be used in satisfying the performance obligation in the future; and (c) are expected to be recovered. Capitalized contract costs relating to upfront payments to customers are amortized to revenue and other capitalized costs are amortized to expenses over the respective contract life on a systematic basis consistent with the transfer of goods or services to customer to which the asset relates. Capitalized costs are monitored regularly for impairment. Impairment losses are recorded when present value of projected remaining operating cash flows is not sufficient to recover the carrying amount of the capitalized costs. Revenue from operation for the three months ended June 30, 2025 and June 30, 2024 are as follows: The Group also derives revenues from the sale of products and platforms like Finacle – core banking solution, Edge Suite of products, Panaya platform, Stater digital platform and Infosys McCamish – insurance platform. Disaggregated revenue information Three months ended June 30, Revenue disaggregation by business segments has been included in segment information (Refer to Note 2.23) . The table below presents disaggregated revenues from contracts with customers by geography and contract type. The Group believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors. Revenues by Geography* Three months ended June 30, 28
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2.17 OTHER INCOME, NET Accounting policy Foreign currency Accounting policy Functional currency Transactions and translations Government grant Other income for the three months and year ended June 30, 2025 and June 30, 2024 is as follows: (In ₹ crore) Particulars 2025 2024 Interest income on financial assets carried at amortized cost Tax free bonds and Government bonds 26 30 Deposit with Bank and others 463 307 332 328 Gain / (loss) on liquid mutual funds and other investments 77 108 (2) — Income on investments carried at amortized cost 24 — (672) 34 743 3 Miscellaneous income, net 51 28 Total other income 1,042 838 Non-convertible debentures, commercial paper, certificates of deposit and government securities Exchange gains / (losses) on translation of other assets and liabilities Income on investments carried at fair value through profit or loss The Group recognizes government grants only when there is reasonable assurance that the conditions attached to them shall be complied with, and the grants will be received. Government grants related to assets are treated as deferred income and are recognized in net profit in the Consolidated Statement of Profit and Loss on a systematic and rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in net profit in the Consolidated Statement of Profit and Loss over the periods necessary to match them with the related costs which they are intended to compensate. Three months ended June 30, Income on investments carried at fair value through other comprehensive income Exchange gains / (losses) on forward and options contracts Interest income on financial assets carried at fair value through other comprehensive income Foreign-currency denominated monetary assets and liabilities are translated into the relevant functional currency at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are recognized in the Condensed Consolidated Statement of Profit and Loss and reported within exchange gains/ (losses) on translation of assets and liabilities, net, except when deferred in Other Comprehensive Income as qualifying cash flow hedges. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. The related revenue and expense are recognized using the same exchange rate. Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled. Revenue, expense and cash-flow items denominated in foreign currencies are translated into the relevant functional currencies using the exchange rate in effect on the date of the transaction. The translation of financial statements of the foreign subsidiaries to the presentation currency is performed for assets and liabilities using the exchange rate in effect at the Balance Sheet date and for revenue, expense and cash-flow items using the average exchange rate for the respective periods. The gains or losses resulting from such translation are included in currency translation reserves under other components of equity. When a subsidiary is disposed off, in full, the relevant amount is transferred to net profit in the Condensed Consolidated Statement of Profit and Loss. However when a change in the parent's ownership does not result in loss of control of a subsidiary, such changes are recorded through equity. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the exchange rate in effect at the Balance Sheet date. Other Comprehensive Income, net of taxes includes translation differences on non-monetary financial assets measured at fair value at the reporting date, such as equities classified as financial instruments and measured at fair value through other comprehensive income (FVOCI). Other income is comprised primarily of interest income, dividend income, gain/loss on investment and exchange gain/loss on forward and options contracts and on translation of foreign currency assets and liabilities. Interest income is recognized using the effective interest method. Dividend income is recognized when the right to receive payment is established. The functional currency of Infosys, its Indian subsidiaries and controlled trusts is the Indian rupee. The functional currencies for foreign subsidiaries are their respective local currencies. These financial statements are presented in Indian rupees (rounded off to crore; one crore equals ten million). X 29
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2.18 EXPENSES Accounting policy Gratuity and Pensions Provident fund Superannuation Compensated absences The Group operates defined benefit pension plan in certain overseas jurisdictions, in accordance with the local laws. These plans are managed by third party fund managers. The plans provide for periodic payouts after retirement and/or for a lumpsum payment as set out in rules of each fund and includes death and disability benefits. The defined benefit plans require contributions which are based on a percentage of salary that varies depending on the age of the respective employees. The Group provides for gratuity, a defined benefit retirement plan ('the Gratuity Plan') covering eligible employees majorly of Infosys and its Indian subsidiaries. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment with the Group. The Company contributes Gratuity liabilities to the Infosys Limited Employees' Gratuity Fund Trust (the Trust). In case of Infosys BPM and EdgeVerve, contributions are made to the Infosys BPM Employees' Gratuity Fund Trust and EdgeVerve Systems Limited Employees' Gratuity Fund Trust, respectively. Trustees administer contributions made to the Trusts and contributions are invested in a scheme with the Life Insurance Corporation of India as permitted by Indian law. Eligible employees of Infosys receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee's salary. The Company contributes a portion to the Infosys Limited Employees' Provident Fund Trust. The trust invests in specific designated instruments as permitted by Indian law. The remaining portion is contributed to the government administered pension fund. The rate at which the annual interest is payable to the beneficiaries by the trust is being administered by the Government of India. The Company has an obligation to make good the shortfall, if any, between the return from the investments of the trust and the notified interest rate. In respect of Indian subsidiaries, eligible employees receive benefits from a provident fund, which is a defined contribution plan. Both the eligible employee and the respective companies make monthly contributions to this provident fund plan equal to a specified percentage of the covered employee's salary. Amounts collected under the provident fund plan are deposited in a government administered provident fund. The Companies have no further obligation to the plan beyond its monthly contributions. Certain employees of Infosys, Infosys BPM and EdgeVerve are participants in a defined contribution plan. The Group has no further obligations to the plan beyond its monthly contributions which are periodically contributed to a trust fund, the corpus of which is invested with the Life Insurance Corporation of India. The Group has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an external actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur. Liabilities with regard to these defined benefit plans are determined by actuarial valuation, performed by an external actuary, at each Balance Sheet date using the projected unit credit method. These defined benefit plans expose the Group to actuarial risks, such as longevity risk, interest rate risk and market risk. The Group recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability / (asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligation is recognized in other comprehensive income. The effect of any plan amendments is recognized in net profit in the Consolidated Statement of Profit and Loss. 30
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Particulars 2025 2024 Employee benefit expenses Salaries including bonus 21,826 20,024 Contribution to provident and other funds 648 572 Share based payments to employees (Refer to Note 2.11) 236 211 Staff welfare 137 127 22,847 20,934 Cost of software packages and others For own use 675 588 Third party items bought for service delivery to clients 3,071 2,867 3,746 3,455 Other expenses Repairs and maintenance 358 334 Power and fuel 54 63 Brand and marketing 387 351 Rates and taxes 88 117 Consumables 55 49 Insurance 78 75 Provision for post-sales client support and others (177) (108) Commission to non-whole time directors 4 4 34 (3) Contributions towards Corporate Social Responsibility 117 171 Others 124 197 1,122 1,250 2.19 Leases (In ₹ crore) Accounting Policy The Group’s lease asset classes primarily consist of leases for land, buildings and computers. The Group assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the group assesses whether: (1) the contract involves the use of an identified asset (2) the Group has substantially all of the economic benefits from use of the asset through the period of the lease and (3) the Group has the right to direct the use of the asset. The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right-of-use asset if the Group changes its assessment if whether it will exercise an extension or a termination option. Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right-of-use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised. The Group as a lessee Three months ended June 30, At the date of commencement of the lease, the Group recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. As a lessee, the Group determines the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Group makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Group considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Group’s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. Impairment loss recognized / (reversed) under expected credit loss model 31
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Particulars Land Buildings Vehicles Computers Total Balance as at April 1, 2025 600 3,348 24 2,339 6,311 Additions* — 175 1 367 543 Deletions — (19) — (194) (213) Depreciation (1) (187) (3) (273) (464) Translation difference — 49 2 113 164 Balance as at June 30, 2025 599 3,366 24 2,352 6,341 Particulars Land Buildings Vehicles Computers Total Balance as at April 1, 2024 605 3,298 17 2,632 6,552 Additions* — 273 3 284 560 Deletions — — — (149) (149) Depreciation (2) (181) (2) (248) (433) Translation difference — (3) (1) (14) (18) Balance as at June 30, 2024 603 3,387 17 2,505 6,512 The following is the break-up of current and non-current lease liabilities as at June 30, 2025 and March 31, 2025: Particulars June 30, 2025 March 31, 2025 Current lease liabilities 2,542 2,455 Non-current lease liabilities 5,943 5,772 Total 8,485 8,227 (In ₹ crore) Following are the changes in the carrying value of right-of-use assets for the three months ended June 30, 2025: Category of ROU asset Following are the changes in the carrying value of right-of-use assets for the three months ended June 30, 2024: Category of ROU asset (In ₹ crore) * Net of adjustments on account of modifications. When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease. * Net of adjustments on account of modifications The Group as a lessor For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease. Leases for which the Group is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. As at (In ₹ crore) The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in the interim condensed Consolidated Statement of Profit and Loss. 32
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2.20 EARNINGS PER EQUITY SHARE Accounting policy 2.21 CONTINGENT LIABILITIES AND COMMITMENTS Accounting policy 2.21.1 Contingent liability (In ₹ crore) June 30, 2025 March 31, 2025 Contingent liabilities : Claims against the Group, not acknowledged as debts(1) 3,002 2,953 (1) As at June 30, 2025 and March 31, 2025, claims against the Group not acknowledged as debts in respect of income tax matters amounted to ₹1,976 crore and ₹1,933 crore, respectively. The claims against the Group primarily represent demands arising on completion of assessment proceedings under the Income Tax Act, 1961. These claims are on account of issues of disallowance of expenditure towards software being held as capital in nature, payments made to Associated Enterprises held as liable for withholding of taxes, among others. These matters are pending before various Income Tax Authorities and the Management including its tax advisors expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Group's financial position and results of operations. Amount paid to statutory authorities against the tax claims amounted to ₹4,185 crore and ₹4,199 crore as at June 30, 2025 and March 31, 2025, respectively. Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as at the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors. [Amount paid to statutory authorities ₹4,202 crore (₹4,207 crore) ] Particulars As at Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. X 33
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Others 2.21.3 Commitments (In ₹ crore) June 30, 2025 March 31, 2025 1,065 935 Other commitments* 115 122 McCamish Cybersecurity incident * Uncalled capital pertaining to investments In November 2023, certain systems of Infosys McCamish Systems LLC (“McCamish”), a subsidiary of Infosys BPM Limited (a wholly owned subsidiary of Infosys Limited), were encrypted by ransomware, resulting in the non-availability of certain applications and systems. McCamish initiated its incident response and engaged cybersecurity and other specialists to assist in its investigation of and response to the incident and remediation and restoration of impacted applications and systems. By December 31, 2023, McCamish, with external specialists’ assistance, substantially remediated and restored the affected applications and systems. Actions taken by McCamish included investigative analysis conducted by a third-party cybersecurity firm to determine, among other things, whether and the extent to which company or customer data was subject to unauthorized access or exfiltration. McCamish also engaged a third-party eDiscovery vendor in assessing the extent and nature of such data. McCamish in coordination with its third-party eDiscovery vendor has identified corporate customers and individuals whose information was subject to unauthorized access and exfiltration. McCamish processes personal data on behalf of its corporate customers. Particulars As at Estimated amount of contracts remaining to be executed on capital contracts and not provided for (net of advances and deposits)(1) (1) Capital contracts primarily comprises of commitments for infrastructure facilities and computer equipment. Apart from the foregoing, the Group is subject to legal proceedings and claims which have arisen in the ordinary course of business. The Group’s management reasonably expects that such ordinary course legal actions, when ultimately concluded and determined, will not have a material and adverse effect on the Group’s results of operations or financial condition. 2.21.2 Legal Proceedings From March 6, 2024 through July 25, 2024, six actions were filed in the U.S. District Court for the Northern District of Georgia against McCamish. The actions arise out of the cybersecurity incident at McCamish initially disclosed on November 3, 2023. All six actions have since been consolidated, and the consolidated class action complaint was filed on November 7, 2024, purportedly on behalf of all persons residing in the United States whose personally identifiable information was compromised in the incident, including all who were sent a notice of the incident. On December 20, 2024, the Court granted the parties’ joint motion to stay proceedings pending the parties’ efforts to resolve the lawsuit through mediation. On March 13, 2025, McCamish and the plaintiffs engaged in mediation, resulting in an in-principle agreement that sets forth the terms of a proposed settlement of the class action lawsuits against McCamish, as well as seven class action lawsuits arising out of the incident that have been filed against McCamish’s customers. On May 9, 2025, McCamish and the plaintiffs entered into a definitive settlement agreement, and the plaintiffs moved for preliminary approval of the settlement. Under the settlement terms, McCamish has agreed to pay $17.5 million (approximately ₹150 crore) into a fund to settle these matters. On July 16, 2025, the Court granted preliminary approval of the settlement. The settlement remains subject to final court approval. If approved, the settlement will resolve all allegations made in the class action lawsuits without admission of any liability. During the three months ended March 31, 2025, McCamish had recorded an accrual of $17.5 million (approximately ₹150 crore) related to the settlement and had recognized an insurance reimbursement receivable of $17 million (approximately ₹145 crore) which has been offset against the settlement expense of $17.5 million (approximately ₹150 crore) in the Statement of Comprehensive Income. McCamish may incur additional costs including from indemnities or damages/claims, which are indeterminable at this time. Government Investigation The U.S. Department of Justice (“DOJ”) is conducting an investigation regarding how the Company classified certain H-1B visa-recipient employees working for one of its clients in immigration documents filed with certain U.S. government authorities. The Company is engaged in discussions with the DOJ regarding its ongoing investigation and has commenced its own inquiry regarding the matter. At this stage, the Company is unable to predict the outcome of this matter, including whether such outcome could have a material adverse effect on the Company’s business and results of operations. 34
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2.22 RELATED PARTY TRANSACTIONS . . . . . . . Transaction with key management personnel: The table below describes the compensation to key management personnel which comprise directors and executive officers: (In ₹ crore) Particulars 2025 2024 30 28 4 4 Total 34 32 Refer Note 2.20 "Related party transactions" in the Company’s 2025 Annual Report for the full names and other details of the Company's subsidiaries and controlled trusts. Changes in Subsidiaries During the three months ended June 30, 2025, the following are the changes in the subsidiaries: (2) Does not include post-employment benefits and other long-term benefits based on actuarial valuation as these are done for the Company as a whole. (1) Total employee stock compensation expense for the three months ended June 30, 2025 and June 30, 2024 includes a charge of ₹17 crore and ₹18 crore, respectively, towards key management personnel. (Refer to Note 2.11) Infosys Energy Consulting Services LLC , a wholly-owned subsidiary of Infosys Nova Holdings LLC was incorporated on April 16, 2025. Salaries and other short term employee benefits to whole-time directors and executive officers (1)(2) Commission and other benefits to non-executive/independent directors Infosys Saudi Arabia LLC, a wholly-owned subsidiary of Infosys Limited was incorporated on April 21, 2025. Infosys Australia Technology Service Pty Ltd, a wholly-owned subsidiary of Infosys Singapore Pte. Limited was incorporated on April 23, 2025. On April 30, 2025, Infosys Nova Holdings LLC , a wholly owned subsidiary of Infosys Limited, acquired 98.21% of partnership interests in MRE Consulting Ltd along with its subsidiary MRE Technology Services, LLC. The remaining 1.79% was acquired by Infosys Energy Consulting Services LLC, a Wholly-owned subsidiary of Infosys Nova Holdings LLC. On April 30, 2025, Infosys Australia Technology Service Pty Ltd, a wholly owned subsidiary of Infosys Singapore Pte. Limited, acquired 100% of voting interests in The Missing Link Automation Pty Ltd, The Missing Link Network Integration Pty Ltd and The Missing Link Security Pty Ltd along with its subsidiary The Missing Link Security Ltd On May 13, 2025, Infosys Singapore Pte Ltd diluted 2% stake of HPUS Co., Ltd to Mitsubishi Heavy Industries, Ltd. in-tech Automotive Engineering de. R L de. C V, a wholly-owned subsidiary of in-tech GmbH has been liquidated effective May 07, 2025. Three months ended June 30, X 35
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2.23 SEGMENT REPORTING Business Segments (In ₹ crore) Particulars Financial Services (1) Manufacturing Energy, Utilities, Resources and Services Retail (2) Communication (3) Hi-Tech Life Sciences (4) All other segments (5) Total Revenue from operations 11,796 6,804 5,742 5,651 5,097 3,296 2,745 1,148 42,279 10,816 5,778 5,220 5,428 4,744 3,147 2,866 1,316 39,315 Identifiable operating expenses 6,662 4,274 3,281 2,914 3,332 1,962 1,710 664 24,799 6,088 3,783 2,715 2,697 3,114 1,783 1,757 751 22,688 Allocated expenses 2,161 1,114 1,024 1,046 885 566 481 260 7,537 2,116 989 948 980 834 550 498 275 7,190 Segment operating income 2,973 1,416 1,437 1,691 880 768 554 224 9,943 2,612 1,006 1,557 1,751 796 814 611 290 9,437 Unallocable expenses 1,140 1,149 Other income, net 1,042 838 Finance cost 105 105 Profit before tax 9,740 9,021 Income tax expense 2,816 2,647 Net Profit 6,924 6,374 Depreciation and amortization 1,140 1,149 Non-cash expenses other than depreciation and amortization — — (1) Financial Services include enterprises in Financial Services and Insurance (2) Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics (3) Communication includes enterprises in Communication, Telecom OEM and Media (4) Life Sciences includes enterprises in Life sciences and Health care (5) Others include operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services Significant clients No client individually accounted for more than 10% of the revenues for the three months ended June 30, 2025 and June 30, 2024, respectively. Three months ended June 30, 2025 and June 30, 2024: Business segment revenue information is collated based on individual customers invoiced or in relation to which the revenue is otherwise recognized. Ind AS 108, Operating segments, establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Group's operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance. The Chief Operating Decision Maker (CODM) evaluates the Group's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the accounting policies. Business segments of the Group are primarily enterprises in Financial Services and Insurance, enterprises in Manufacturing, enterprises in Retail, Consumer Packaged Goods and Logistics, enterprises in the Energy, Utilities, Resources and Services, enterprises in Communication, Telecom OEM and Media, enterprises in Hi-Tech, enterprises in Life Sciences and Healthcare and all other segments. The Financial services reportable segments has been aggregated to include the Financial Services operating segment and Finacle operating segment because of the similarity of the economic characteristics. All other segments represent the operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services. Revenue and identifiable operating expenses in relation to segments are categorized based on items that are individually identifiable to that segment. Revenue for 'all other segments' represents revenue generated by Infosys Public services and revenue generated from customers located in India, Japan and China and other enterprises in Public services. Allocated expenses of segments include expenses incurred for rendering services from the Group's offshore software development centers and on-site expenses, which are categorized in relation to the associated efforts of the segment. Certain expenses such as depreciation and amortization, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying assets are used interchangeably. The Management believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and adjusted against the total income of the Group. Assets and liabilities used in the Group's business are not identified to any of the reportable segments, as these are used interchangeably between segments. The Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous. Disclosure of revenue by geographic locations is given in note 2.16 Revenue from operations. XX 36
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2.24 FUNCTION WISE CLASSIFICATION OF CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS (In ₹ crore) Particulars Note No. 2025 2024 Revenue from operations 2.16 42,279 39,315 Cost of Sales* 29,224 27,177 Gross profit 13,055 12,138 Operating expenses Selling and marketing expenses 2,208 1,937 General and administration expenses 2,044 1,913 Total operating expenses 4,252 3,850 Operating profit 8,803 8,288 Other income, net 2.17 1,042 838 Finance cost 105 105 Profit before tax 9,740 9,021 Tax expense: Current tax 2.15 3,053 2,998 Deferred tax 2.15 (237) (351) Profit for the period 6,924 6,374 Other comprehensive income Items that will not be reclassified subsequently to profit or loss Remeasurement of the net defined benefit liability/asset, net (70) 20 Equity instruments through other comprehensive income, net 35 14 (35) 34 Items that will be reclassified subsequently to profit or loss Fair value changes on derivatives designated as cash flow hedge, net 6 (3) Exchange differences on translation of foreign operations, net 1,019 (104) Fair value changes on investments, net 123 40 1,148 (67) Total other comprehensive income / (loss), net of tax 1,113 (33) Total comprehensive income for the period 8,037 6,341 Profit attributable to: Owners of the Company 6,921 6,368 Non-controlling interests 3 6 6,924 6,374 Total comprehensive income attributable to: Owners of the Company 8,024 6,337 Non-controlling interests 13 4 8,037 6,341 for and on behalf of the Board of Directors of Infosys Limited Nandan M. Nilekani Salil Parekh Bobby Parikh Chairman Chief Executive Officer Director DIN: 00041245 and Managing Director DIN: 00019437 DIN: 01876159 Bengaluru Jayesh Sanghrajka A.G.S. Manikantha July 23, 2025 Chief Financial Officer Company Secretary Membership No. A21918 Three months ended June 30, X 37