Infosys Bonus Payout Falls From 85% To Around 70% In March Quarter: Report
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Infosys cuts March quarter performance bonus to about 70 percent from 85 percent in December, as AI pressures IT sector, despite Q4 FY26 profit and margin growth
Infosys Variable Pay
Infosys’ employees have bad news as the tech company has slashed the performance bonus payout for the March quarter, according to a report by Moneycontrol. It is in contrast to the company’s earlier policies, where it distributed the strongest variable pay in more than three years in the preceding quarter.
The MC report stated that Infosys announced the performance bonus payout of around 70 per cent for March quarter, which is lower than the 85 per cent in the December quarter (Q3FY26), which was the IT’s company best variable pay in the past three years.
According to an internal payout matrix reviewed by Moneycontrol, variable pay disbursements at Infosys differed across employee grades and business segments during the latest appraisal cycle.
Employees in Personal Level (PL) 4 received payouts ranging from 67 per cent to 82 per cent, while those in PL5 saw payouts between 65 per cent and 78 per cent. For employees in PL6, payouts ranged from 63 per cent to 77 per cent, depending on the business unit and delivery segment.
PL bands are internal performance grading categories used by Infosys to evaluate employees during appraisal cycles and determine variable pay allocations. The payout structure reportedly varied across delivery verticals and business functions.
The market pressure and AI impact hit hard on IT stocks in the past few months, with Infosys dropping 23 per cent over the past six months.
The rise of AI-driven tools and models has sparked fears among investors over the viability of SaaS-based business model, the traditional model of Indian IT companies. Some fear that these IT giants will struggle for business and revenue once the full-fledged use of AI replaces them. It’s considered an inflection point.
Infosys Q4 Results
IT major Infosys had reported a 20.78 per cent jump in its net profit to Rs 8,501 crore for the fourth quarter ended March 31, 2026 (Q4 FY26). Its revenue in January-March 2026 increased 2 per cent to Rs 46,402 crore.
Its net profit had stood at Rs 7,033 crore in the previous quarter.
At the operating level, earnings before interest and tax (EBIT) climbed 16.6 per cent quarter-on-quarter to Rs 9,743 crore. EBIT margin expanded significantly to 21 per cent from 18.4 per cent in the previous quarter, reflecting better operational efficiency.
Profit before tax increased 17 per cent sequentially to Rs 10,797 crore, while lower tax expenses further supported bottom-line growth during the quarter. Basic earnings per share came in at Rs 21.01, compared with Rs 16.17 in the preceding quarter.
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