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    Ashwin Mehta • AMBIT Capital

    Ashwin Mehta's questions to Infosys Ltd (INFY) leadership

    Ashwin Mehta's questions to Infosys Ltd (INFY) leadership • Q1 2026

    Question

    Ashwin Mehta of Ambit Capital Pvt. Ltd. asked for the drivers behind the 50 bps sequential decline in depreciation and amortization and the nearly 90 bps bump-up in SG&A expenses for the quarter.

    Answer

    CFO Jayesh Sanghrajka explained the D&A decline was due to the absence of a one-off amortization charge from the previous quarter. He attributed the higher SG&A to a combination of factors: the impact of compensation increases and variable pay, investments in sales and marketing to improve growth, and costs related to brand-building events during the quarter.

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    Ashwin Mehta's questions to Infosys Ltd (INFY) leadership • Q4 2025

    Question

    Ashwin Mehta of AMBIT Capital asked for clarification on an unusual negative number for consultancy charges in the cost of sales line and the reason for a high reversal in the provision for post-sale support.

    Answer

    CFO Jayesh Sanghrajka clarified the negative consultancy charge was a one-time $20 million insurance claim benefit related to a prior-year cyber event. He explained the large reversal in post-sale support provision was driven by two factors: normal Q4 seasonality as projects conclude, and improved project controls under Project Maximus, which reduces future warranty costs.

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