Infosys Shares Decline Following Downward Revision of Revenue Growth Forecast
Mumbai, October 26: Infosys shares fell sharply in Monday trade after India’s second-largest IT services company cut its full-year revenue growth forecast for the second time this fiscal. The second-quarter results it announced on Friday did little to offset the disappointment.
Stock slides at the open
The stock fell as much as 4% in early trade on the NSE, touching an intraday low of ₹1,107 against Friday’s close of ₹1,153.80. It was among the biggest Nifty losers. The stock’s losses were uneven through the morning: at one point it traded near ₹1,127, down about 2.3%, and later in the morning session it was around ₹1,143, down nearly 1%.
What changed in the guidance
Infosys lowered its FY27 constant-currency revenue growth guidance to 1–2%, from the earlier 1.5–3%, while retaining its operating margin guidance of 20–22%. The company began the year at 1.5–3.5% in April and trimmed that to 1.5–3.0% in July. This latest revision also lowers the bottom of the range.
The quarter in numbers
Consolidated net profit rose 6.2% year on year to ₹7,823 crore. Revenue from operations came in at ₹49,244 crore. In dollar terms, revenue was $5,145 million, up 1.5% year on year and 1.2% sequentially in constant currency, with operating margin stable at 21.0%. Margin contracted 10 basis points sequentially, and volumes were softer after the company exited a large European manufacturing contract.
Deals and AI offer some support
Large-deal wins totalled $5.2 billion, 62% of them net new, including a mega deal of over $2 billion. AI revenue made up 10.5% of the total and grew 29% quarter on quarter. The board declared an interim dividend of ₹26 per share.
Salil Parekh, CEO and MD, said the large deals reinforced Infosys’s position as a trusted partner for complex transformation programmes.
Analysts unconvinced
Systematix and Motilal Oswal expressed disappointment with the quarter and reportedly lowered their fair value estimates, citing pricing pressure and subdued technology spending. Analysts remain divided on the stock. Investors are weighing whether record deal wins and AI momentum can offset the weak near-term demand.
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