Reported Profit and Operating Cash Flow at Infosys: A Three-Year Case Study- Financial Years 2023–24 to 2025–26

This paper examines why reported profit and operating cash flow differed at Infosys during FY2023–24, FY2024–25 and FY2025–26. It uses secondary data from audited consolidated financial statements prepared under Indian Accounting Standards. The analysis compares profit after tax with net operating cash flow, calculates ratios and reconciles the differences through non-cash adjustments, operating asset and liability movements, and cash taxes. Operating cash flow represented 96.05%, 133.44% and 115.31% of profit respectively. Across the period, cumulative operating cash flow exceeded cumulative profit by ₹12,418 crore, but the annual relationship varied substantially. Working-capital movements and the timing of tax payments explain much of this variation. In FY2025–26, cash generated before tax increased, while larger net tax payments caused operating cash flow to decline. The findings demonstrate the value of reading profit and cash-flow statements together and interpreting ratios through their underlying accounting components.