The IT service firm said its revenue would either stay flat or grow by up to 3 percent in the fiscal year through March 2026 on a constant currency basis, below analyst estimates of growth of 2-4 percent.

The sales forecast was also lower than the 4.2 percent constant-currency revenue growth that Infosys recorded in the previous financial year.

Infosys, India's second-largest software services exporter, earns more than 80 percent of its revenue from Western markets.

Like many of its rivals, it had anticipated a revival in demand in 2025 after grappling with a growth slowdown for most of 2024.

However, lingering weakness in client spending and US President Donald Trump's chaotic trade policies have clouded the IT sector's growth outlook.

While Trump's tariffs don't directly affect India's IT firms, trade tensions would hurt companies around the world and make them more hesitant to spend on big tech projects.

Chief Executive Salil Parekh told a news briefing the environment was "uncertain" and the company would execute its plans with "agility", while keeping a "close watch on changes".

Infosys Chief Financial Officer Jayesh Sanghrajka said the lower end of the sales forecast, which implies flat revenue, factored in "increasing" uncertainty but added that it was difficult to break down the impact of factors that included Trump's tariffs.

The firm's muted forecast echoes similar warnings made by rivals TCS and Wipro over the past week.

Infosys also reported its March quarter results on Thursday, posting an 11.75 percent year-on-year drop in net profit to 70.3 billion rupees ($823.5 million).

Analysts had on average projected a bottom line of 66.98 billion rupees.

The company's revenue for the three months ended March 31 rose 7.9 percent to 409.25 billion rupees.