Infosys Share Price: Infosys shares rose over 3% on Tuesday, September 9, as the IT major is set to consider a proposal for the buyback of its equity shares at a board meeting scheduled for September 11.
The move comes at a time when the company’s stock has significantly underperformed, falling nearly 25% over the past year and declining 24% year-to-date. Infosys’ weakness mirrors the broader downturn in the Indian IT sector, which has been hit by global economic uncertainty and reduced enterprise tech spending. The Nifty IT index has fallen 19% during the same period, underscoring sector-wide stress.
A share buyback is a process where a company repurchases its own shares from existing shareholders, often at a premium to the market price. This reduces the total number of outstanding shares, thereby improving earnings per share (EPS), supporting stock prices, and signaling confidence in the company’s financial health. For investors, it can also represent a tax-efficient way to return surplus cash compared to dividends.
The buyback proposal is seen as a strategic initiative aimed at boosting investor confidence and returning value to shareholders amid a challenging business environment.
Despite muted market performance, Infosys posted a 9% year-on-year (YoY) increase in consolidated net profit at Rs 6,921 crore for the first quarter ended June 2025. Revenue from operations grew 8% YoY to Rs 42,279 crore, while revenues in constant currency (CC) terms rose by 3.8% YoY and 2.6% sequentially.
The company reported total deal wins worth $3.8 billion in the quarter, of which 55% were net new, indicating continued demand for its services despite broader macro pressures.
In a cautious move, Infosys lowered the lower end of its revenue growth guidance to 1–3% in constant currency for FY26, reflecting the uncertain global IT spending environment. The company’s operating margin for the April-June quarter stood at 20.8%, a decline of 0.3% YoY and 0.2% quarter-on-quarter (QoQ). Infosys expects margins to remain within the 20–22% range for the remainder of the fiscal year.
On a segment basis, financial services—the company’s largest vertical—grew 5.6% YoY in CC terms. The manufacturing vertical led growth with a strong 12.2% increase. However, the retail segment remained flat with just 0.4% growth, while the hi-tech business rose by a modest 1.7%.
Infosys shares closed nearly 1% lower at Rs 1,432.65 on the BSE on Monday.
