Infosys Q4FY26: Average Performance Bonus at 70% Amid Slower IT Demand and Rising Costs

Infosys set its average performance bonus payout at 70% for Q4FY26. The payout was lower than the 85% average paid for the December quarter. That earlier payout was the firm’s highest variable pay since the Covid-19 period. The latest change arrived as IT firms watched weaker client spending and higher costs.

An internal note detailed the completed bonus process for Q4FY26. "The performance bonus (PB) recommendation for Q4 FY2025-26 has been completed. The organisation average bonus payout stood at 70% for Q4 FY26," the note accessed by Moneycontrol stated. Infosys used Personal Levels to link appraisal outcomes with variable pay.

Infosys’ internal payout matrix showed different ranges across business units. PL4 payouts ranged from 67% to 82%. PL5 payouts ranged from 65% to 78%. PL6 payouts ranged from 63% to 77%. The ranges reflected delivery needs and business segment results.

Personal Level (PL)	Bonus payout range
PL4	67% to 82%
PL5	65% to 78%
PL6	63% to 77%

The lower payout came while the IT sector faced slower global demand. Firms also dealt with rising operational costs and macro uncertainty. Tensions in the Middle East added fresh business concerns. Across India’s IT industry, clients cut discretionary spends in banking, retail, and manufacturing. Many firms focused on cost control and AI adoption.

Even with the softer bonus, Infosys posted higher fourth-quarter profits. Consolidated net profit rose 20.87% to Rs 8,501 crore for the quarter ended March 2026. Revenue from operations increased 13.38% to Rs 46,402 crore. It was Rs 40,925 crore in Q4FY25. Infosys also kept cautious hiring as clients delayed budgets.

The Q4FY26 payout followed a stronger bonus in the previous quarter. Infosys had paid an 85% average performance bonus for the quarter ended December. That Q3 bonus was disbursed with February salaries. Employees reported payouts between 75% and 100% of target variable pay. Some said payouts were 15% higher than the prior quarter.