Infosys Shares Down 3% as Company Sees Slightly Subdued Growth Ahead 

Mumbai, April 24: Shares of Infosys fell as much as three per cent in early trade on Friday as the country’s second-largest IT services firm foresaw slightly weak revenue growth for FY27 while announcing better than expected earnings for the March quarter. 

At the time of writing this report, the stock was down 2.5 per cent at Rs 1,209.90. 

For the quarter in review, revenue rose 13.4% year on year at Rs 46,400 crore, driven largely by financial services, energy and communications segments. The financial services segment — the company’s largest — grew 5% during the quarter. 

Positive Surprise 

The revenue beat comes as a positive surprise in an otherwise mixed earnings season for the IT sector, where companies have been grappling with weak discretionary spending and delayed client decision-making. Infosys’ performance indicates that large deal execution and steady demand in critical sectors continue to support growth. 

However, the company struck a slightly cautious tone on the outlook. Infosys guided for revenue growth of 1.5% to 3.5% for financial year 2027, which came in below expectations, highlighting persistent uncertainty in the demand environment. 

Subdued Outlook 

The subdued guidance underscores broader challenges facing the IT services industry. Clients, particularly in developed markets, remain cautious on technology spending amid global economic uncertainties and geopolitical risks. This has resulted in slower project ramp-ups and limited visibility on near-term growth. 

The outlook also reflects a structural shift within the sector. While demand for AI-led and digital transformation services remains strong, traditional discretionary spending — especially in segments like retail and manufacturing — continues to be under pressure. This divergence has led to uneven growth across verticals. 

In Line 

Infosys’ cautious commentary is broadly in line with trends seen across peers, many of whom have also flagged muted growth expectations for the coming year. The sector remains highly sensitive to global cues, particularly in the US and Europe, which account for a significant portion of revenues.  

The company’s net profit rose sharply to Rs 8,501 crore, up 20.87% year-on-year, also beating expectations. Speaking of the company’s deal pipeline, large deal bookings came in at $3.2 billion, down from $4.8 billion in the previous quarter, although higher than $2.6 billion a year ago. Infosys also announced a final dividend of Rs 25 per share for FY26. 

Mixed Picture 

Despite the near-term headwinds, analysts note that Infosys remains well-positioned to benefit from long-term technology trends, including cloud adoption and artificial intelligence. The company’s strong presence in the financial services segment and its focus on large deal wins are expected to support growth over the medium term. 

Overall, the March quarter results present a mixed picture — a solid revenue beat that highlights underlying resilience, but a conservative outlook that signals continued caution. As the IT sector navigates an uncertain global environment, Infosys’ guidance suggests that growth is likely to remain modest in the near term, with recovery expected to be gradual rather than sharp. 

Source:

• https://www.nseindia.com/get-quote/equity/INFY/Infosys-Limited 
• NSE