Noida, Apr 24 (APAC Media): Shares of Infosys fell as much as 4% in early trade on Friday, April 24, after its March quarter results announced post-market hours on Thursday, while its US-listed shares also closed nearly 5% lower overnight, reflecting weak investor sentiment following the earnings update.
Stocks of Infosys plunged 4.50% to Rs 1,186 on the BSE. Meanwhile, the stock declined 4.34% to Rs 1,186 on the NSE during intraday trade at 10:34 am.
Infosys on Thursday reported a 21% year-on-year increase in consolidated net profit to Rs 8,501 crore for the quarter ended March 31, 2026, compared with Rs 7,033 crore in the same period last year.
Equirus Securities has maintained a “Long” rating on Infosys with a target price of Rs 1,460 compared to a current market price (CMP) of Rs 1,241, indicating an upside potential of about 18% by June 2027.
The broker has advised investors to remain positive on the stock from a long-term perspective, highlighting consistent deal wins and strong execution capabilities despite prevailing macroeconomic uncertainties.
“The FY27 constant currency revenue growth guidance of 1.5% to 3.5% appears conservative and below expectations, impacted by competitive intensity, selective deal wins, client-specific headwinds in Europe, higher offshore mix, and slower decision-making,” Equirus Securities said.
Following the announcement, the stock witnessed selling pressure in early trade, dragging down the broader IT pack. The decline also weighed on the Nifty IT Index, which saw multiple constituents trading in the red.
“Despite near-term pressures, Infosys is expected to outperform peers in FY27, driven by strong large deal momentum, a robust pipeline, growth in BFSI and EURS segments, and improving margin execution.” Broking firm added.
“We delivered a resilient performance in FY26 with growth of 3.1% and strong large deal wins of $14.9 billion, reflecting the robustness of our enterprise AI value proposition and market share gains in large transformation opportunities,” said Salil Parekh, CEO and MD of Infosys.
The broader IT sector has also been facing headwinds amid global economic uncertainties, including inflationary pressures and cautious enterprise spending. These factors have led to a more conservative outlook across major technology firms.
Equirus Securities expressed, “Infosys reported healthy large deal wins with 4Q TCV at $3.2 billion and FY26 TCV at $14.95 billion (+28% YoY), while FY27 constant currency growth guidance implies sequential growth of 0.7%–1.4% with a stronger first half, and we value the stock at a target P/E of 17.5x, representing a 15–30% discount to its 5- and 10-year averages to factor in macro volatility and long-term AI-led cannibalisation risks.”
Overall, despite delivering stable Q4 results, Infosys’ muted guidance and mixed broking views dampened market sentiment, leading to a notable decline in its share price.
Disclaimer: Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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Infosys Q4 Results: Net Profit Jumps 21% YoY to Rs 8,501 Crore; Rs 25 Dividend Announced
