Shares of Infosys declined 3.3 per cent to a 52-week low of ₹1,199 on the NSE on Friday, before trimming some losses to trade at ₹1,201.60 at 9.43 am, still down 3 per cent from the previous close of ₹1,240.60.

The IT major reported a steady operational performance for the quarter ended March. Revenue rose to ₹46,402 crore, up 13.4 per cent year-on-year and 2 per cent quarter-on-quarter, though constant currency growth remained modest. Net profit came in at ₹8,501 crore, registering a 20.9 per cent increase year-on-year and a sharp 27.8 per cent sequential rise. Operating margin stood at 21 per cent during the quarter.

However, the company’s forward-looking commentary remained cautious. Infosys guided for FY27 revenue growth of 1.5 per cent to 3.5 per cent, indicating a subdued demand environment. Large deal total contract value (TCV) for Q4 stood at $3.2 billion, down from $4.8 billion in the preceding quarter, reflecting some softness in deal momentum.

Brokerage divided

Brokerages largely maintained constructive long-term views but flagged near-term headwinds. Motilal Oswal cut its FY27 and FY28 earnings estimates by around 2–4 per cent, citing lower growth assumptions and pricing pressure from AI-led deflation. It said that while near-term growth remains constrained, Infosys’ positioning in AI-driven transformation and cost optimisation programmes should support gradual improvement. The brokerage retained a ‘buy’ rating with a target price of ₹1,450.

HDFC Securities noted that the 1.3 per cent quarter-on-quarter constant currency revenue decline was slightly below expectations, attributing it to seasonality and slower client decision-making. It added that the revenue guidance was also softer than anticipated, factoring in a client-specific ramp-down and shifts in delivery mix. The brokerage highlighted that while AI-led opportunities are expanding and commanding premium pricing, productivity-led savings are compressing the core portfolio. It maintained a ‘buy’ rating with a target price of ₹1,550 after trimming estimates by about 2–3 per cent.

Citi retained a ‘neutral’ stance on the stock and reduced its target price to ₹1,300, pointing to weaker-than-expected Q4 performance on revenue and margins. It said management commentary suggested slower decision cycles and intensified competition, and cut its FY27–28 earnings estimates marginally, though it expects Infosys to outperform peers in FY27.

Jefferies maintained a ‘hold’ rating with a target price of ₹1,235, stating that while Q4 performance was broadly in line, weak guidance, lower deal wins and a decline in headcount were concerns. It projected earnings growth of around 7 per cent CAGR and noted that while dividend yield could limit downside, growth constraints may cap upside in the near term.

Published on April 24, 2026