Beena Parmar's questions to Infosys Ltd (INFY) leadership • Q1 2026
Question
Beena Parmar asked about potential revenue cannibalization from AI, the extent of productivity gains being passed to customers, changes in pricing, the factors behind the quarterly margin decline, and the current tone of client conversations regarding demand.
Answer
CEO Salil Parekh acknowledged that productivity benefits from AI are shared with clients but stated that, on balance, the quality of revenue and pricing are improving due to more impactful work. CFO Jayesh Sanghrajka detailed that the 20-basis-point margin decline was driven by compensation and currency headwinds, which were partially offset by pricing benefits and other efficiencies. Parekh added that clients are highly focused on enterprise AI and cost efficiency, leading to consolidation deals that benefit Infosys.