Infosys Share Price Today: Infosys shares declined 3.5% to a 52-week low of Rs 1,198.80 on the BSE on Friday, April 24, tracking weak cues from the US trading session. The fall came despite a broadly in-line March quarter (Q4) performance, as investors reacted negatively to subdued forward guidance, which weighed on sentiment around the IT major’s near-term growth outlook.
The pressure was also visible in US markets, where Infosys’ ADR dropped nearly 4% to around $12.94, reflecting global investor caution even as the company delivered steady quarterly numbers.
Weak FY27 Guidance Weighs on Sentiment
Infosys, India’s second-largest IT services exporter, guided for FY27 revenue growth of 1.5% to 3.5% in constant currency terms. While this was largely in line with analyst expectations,
it remained at the lower end of projections, dampening optimism. The company maintained its EBIT margin guidance at 20% to 22% for the full year, offering limited upside triggers for the Street.
Q4FY26: Profit Growth Strong, Margins Stable
For Q4FY26, the company reported a 21% year-on-year rise in consolidated net profit to Rs 8,501 crore, compared with Rs 7,033 crore in the year-ago period. Revenue grew 13.4% YoY and 2% sequentially to Rs 46,402 crore, up from Rs 40,925 crore in Q4FY25 and Rs 45,479 crore in Q3FY26.
On the operating front, EBITDA increased 13.6% YoY and 16.6% QoQ to Rs 9,743 crore. Operating margins remained flat on a yearly basis but improved 2.6% sequentially to 21%. EBIT margins expanded marginally by 20 basis points, although EBIT came in slightly below Street expectations. Most other operational metrics were largely in line with estimates.
Large deal wins during the quarter stood at $3.2 billion, within the guided range of $3 billion to $4 billion, but towards the lower end.
FY26 Performance Overview
For the full financial year FY26, Infosys posted a 10.2% increase in net profit to Rs 29,440 crore, while revenue rose 9.6% YoY to Rs 1,78,650 crore. Operating profit grew 5.3% YoY to Rs 36,254 crore, though operating margins declined 0.8 percentage points to 20.3%.
Revenue growth in constant currency terms came in at 3.1% YoY. Large deal bookings (above $30 million) were $3.2 billion in Q4, lower than $4.8 billion in the previous quarter but higher than $2.6 billion in the same period last year.
Dividend Announcement
Alongside its earnings, Infosys declared a final dividend of Rs 25 per share for FY26. The record date for the payout is set as June 10, with the dividend scheduled to be paid on June 25. Earlier, the company had announced an interim dividend of Rs 23 per share in October, taking the total dividend payout for FY26 to Rs 48 per share.
Brokerages Remain Constructive Despite Near-Term Weakness
Brokerages maintained a broadly positive stance on Infosys, even as they flagged near-term headwinds. Analysts highlighted that AI-led disruption, pricing pressure and cautious client spending are reshaping the growth environment, though long-term fundamentals remain intact.
Motilal Oswal: BUY with Rs 1,450 Target
Motilal Oswal Financial Services retained a BUY rating with a target price of Rs 1,450, implying about 17% upside. The brokerage noted that guidance reflects increasing pressure on the existing book due to AI-led efficiencies, rising competition and pricing pressure in a weak demand environment.
It attributed the FY27 guidance range to compression in the core portfolio, as productivity gains are passed on to clients. Motilal Oswal expects around 2.5% organic growth, lower than FY26’s 3.1%, and estimates revenue growth of 3.7% and 3.9% YoY in constant currency for FY27E and FY28E, respectively.
The brokerage also flagged deteriorating deal economics, noting that Infosys is among companies walking away from large contracts due to unfavourable terms despite strong total contract value (TCV). It cut FY27E/FY28E EPS by 2–4% and PAT by 3–4%, factoring in pricing pressure and vertical-specific challenges, while projecting EBIT margins at around 21%.
HDFC Securities: Demand Environment Still Challenging
HDFC Securities pointed out that Infosys reported a 1.3% QoQ decline in constant currency revenue in Q4, slightly below expectations due to seasonal factors and slower client decision-making.
The brokerage highlighted that clients continue to prioritise cost optimisation and operational resilience, while AI-led deflation in existing deals offsets gains from transformation projects. It noted that FY27 guidance factors in a client-specific ramp-down and a lower onsite mix. HDFC Securities trimmed its estimates by 2–3% but maintained a BUY rating with a target price of Rs 1,550.
Elara Securities: Focus on Profitability a Positive
Elara Securities believes Infosys is entering FY27 with better visibility on client behaviour compared to last year. It views the company’s decision to walk away from margin-dilutive deals as a positive step toward protecting profitability.
The brokerage noted that Infosys continues to lead peers in revenue and EBITDA per employee. It projects USD revenue growth of 4.0% for FY27E and 3.5% for FY28E, with a 7.5% earnings CAGR over FY26–FY28. While it cut earnings estimates by 2–5% and reduced its target price to Rs 1,530 from Rs 1,600, it retained a BUY recommendation.
Outlook
The overall takeaway from Infosys’ results and brokerage commentary is that while earnings remain resilient, growth visibility is moderating. AI-led efficiencies, pricing pressure and cautious client spending are expected to weigh on near-term performance, even as the company positions itself for long-term transformation-driven demand.
