Infosys Employees Receive Higher Performance Bonuses for Q1 FY2025-26

Infosys employees have received higher performance bonuses for Q1FY2025-26, with payouts increasing at least 20% from the previous quarter. Eligible employees at levels 4, 5, and 6 have received the bonus, covering software engineers to team leaders and senior managers. The company will credit the payment along with the August salary. This marks a return to good old days for employees and follows a salary revision in February offering a 5-8% increase. Promotions for select employees have also been rolled out after a year-long pause, with criteria including experience, competence, and team contributions.

Infosys has announced a significant increase in performance bonuses for its employees in the first quarter of fiscal year 2025-26. The bonuses, which were distributed to eligible employees at levels 4, 5, and 6, have seen an increase of at least 20% compared to the previous quarter. The company will credit these payments alongside the August salary. This marks a return to higher payouts for employees and follows a salary revision in February that offered a 5-8% increase.

The bonuses are part of Infosys' efforts to boost employee morale and retention, particularly in light of the company's strong financial performance. The move comes after a year-long pause in promotions, which have now resumed for select employees based on criteria including experience, competence, and team contributions.

The company's recent financial performance has been robust, with Kotak Institutional Equities reiterating its "BUY" recommendation on Infosys, setting a 12-month target price of Rs1,850. This target is based on Infosys' strategic acquisitions and expansion in cloud, digital transformation, and cybersecurity, as well as its favorable forward valuation despite macroeconomic headwinds [1].

Infosys' latest acquisition, a 75% stake in Versent Group, further strengthens its position in the Australian market. Versent Group specializes in cloud-native applications and digital transformation, and its integration with Infosys will provide access to high-value public sector and financial institution opportunities [1].

These strategic moves, combined with Infosys' consistent financial performance, suggest that the company is well-positioned to capitalize on future growth opportunities. Investors are advised to accumulate Infosys shares, targeting a fair value of Rs1,850 within the next 12 months [1].

References:
[1] https://topnews.in/infosys-share-price-target-rs-1850-kotak-securities-2417963