Shares of Indian tech giant, Infosys Ltd, on Friday fell as much as 5 percent after the company reported its Q4 FY26 results and issued a subdued growth outlook. Infosys stock declined to an over 5-year-low, and was the top loser on benchmark Nifty 50 index during afternoon trade. At 12:15 PM, Infosys share was trading 5.53% or Rs 68.60 lower at Rs 1172.68.
JM Financial Institutional Securities Limited in its research report on Infosys said, “Margin headwinds for FY27 also includes a potential 70bps dilutive impact from acquisitions. Prefer Infosys among the top 6 Indian IT companies given healthy large deal wins. Valuations are at ~16x FY27 consensus EPS. We revise our EPS estimates down by 1-2% over FY27-28E, incorporating 4Q results. Maintain target multiple of 19x Sep 27 – revised TP of INR 1,500 (versus INR 1525 earlier). Maintain BUY.”
In the latest quarterly results announcement for Q4, Infosys guided for FY27 revenue growth of 1.5% to 3.5% in constant currency terms.
Infosys’ net profit rose 27.8 percent quarter-on-quarter to Rs 8,501 crore. The revenue growth remained modest at 2 percent sequentially, while FY27 guidance came in at 1.5-3.5 percent constant currency growth, indicating continued demand uncertainty.
Infosys reported a sharp decline in headcount during the March quarter, with attrition ticking up slightly.
Infosys posted earnings before interest and tax (EBIT) of Rs 9,743 crore, registering a 16.6 per cent rise quarter-on-quarter. The company also saw a significant expansion in its EBIT margin, which climbed to 21 per cent from 18.4 per cent in the previous quarter.
Profit before tax rose 17 per cent sequentially to Rs 10,797 crore, supported in part by lower tax expenses, which helped strengthen the overall bottom line. Basic earnings per share also improved to Rs 21.01, compared to Rs 16.17 in the preceding quarter, reflecting better profitability for shareholders.
Infosys announced a final dividend of Rs 25 per equity share for FY26, offering a positive signal to investors.
According to research analyst Nomura, Infosys Q4 saw a marginal revenue miss but a modest margin beat, while FY27 guidance remains in line at the midpoint. It expects margins to stay stable at around 21% in FY27.
HSBC said Q4 performance was slightly softer than expected. Achieving the upper end of the guidance band could signal a pickup in demand, particularly in the first half of FY27.
Infosys Shares Hit 5-Year Low: What Triggered the Sharp Fall?
