Shares of Infosys experienced a significant drop of 7 percent after the company’s revenue growth forecast for fiscal year 2027 fell short of market expectations. The stock closed at ₹1,154.60, marking a decrease of 6.93 percent and hitting a 52-week low of ₹1,152.20, down from the previous close of ₹1,240.60.
For the quarter ending in March, Infosys reported steady operational performance. Revenue increased to ₹46,402 crore, reflecting a year-on-year growth of 13.4 percent and a quarter-on-quarter growth of 2 percent, although constant currency growth remained modest. The net profit reached ₹8,501 crore, a 20.9 percent increase year-on-year and a notable 27.8 percent rise sequentially. The company’s operating margin stood at 21 percent for the quarter.
Despite this performance, Infosys adopted a cautious outlook. The company provided a revenue growth forecast for FY27 ranging from 1.5 percent to 3.5 percent, suggesting a subdued demand environment. The total contract value (TCV) of large deals for Q4 was $3.2 billion, down from $4.8 billion in the prior quarter, indicating a decline in deal momentum.
Brokerages expressed mixed reactions to the results but largely maintained positive long-term views, citing near-term challenges. Motilal Oswal adjusted its FY27 and FY28 earnings estimates downward by approximately 2–4 percent, attributing it to reduced growth assumptions and pricing pressures linked to AI-driven deflation. The brokerage retained a ‘buy’ rating with a target price of ₹1,450, emphasizing that while short-term growth is limited, Infosys’s positioning in AI-driven transformations could foster gradual improvement.
HDFC Securities noted a 1.3 percent quarter-on-quarter decline in constant currency revenue, slightly below expectations. This decline was attributed to seasonal factors and slower client decision-making. The brokerage highlighted that the revenue guidance was softer than anticipated, influenced by a client-specific ramp-down and a changing delivery mix. While AI-led opportunities are growing and commanding premium pricing, productivity-driven savings are eroding the core portfolio. HDFC Securities maintained a ‘buy’ rating with a reduced target price of ₹1,550 after trimming estimates by about 2–3 percent.
Citi adopted a ‘neutral’ stance on Infosys, lowering its target price to ₹1,300. The firm indicated that the Q4 performance on both revenue and margins was weaker than expected. Management’s commentary pointed to prolonged decision cycles and intensified competition, prompting a slight reduction in FY27–28 earnings estimates. Nonetheless, Citi anticipates that Infosys will outperform its peers in FY27.
Jefferies maintained a ‘hold’ rating with a target price of ₹1,235, noting that while Q4 performance aligned broadly with expectations, weak guidance, reduced deal wins, and declines in headcount raised concerns. They forecasted an earnings growth rate of about 7 percent CAGR, indicating that while dividend yield may limit downside risk, growth constraints could restrict upside in the near term.
Published on April 24, 2026.
