Synopsis:
The stock rose after a ₹18,000 crore buyback approval and a strategic alliance with HanesBrands. Strong Q1 results, robust deal wins, and margin focus highlight growth momentum, while brokerage outlook signals further upside despite macro challenges and cost pressures.
The shares of the global leader in IT services have surged up to 2.3 percent in today’s trading session after the company’s board approved the proposal of share buyback worth Rs 18,000 crore.
With a market capitalization of Rs 6,35,808.95 crore, the shares of Infosys Ltd were trading at Rs 1,530.45 per share, increasing around 1.39 percent as compared to the previous closing of Rs 1509.50 apiece.
Share BuyBack
The shares of Infosys Ltd have seen positive movement after the Board of Directors has approved a proposal to buy back upto 10,00,00,000 fully paid-up equity shares, worth Rs 18,000 crore at Rs 1,800 per share, comprising the purchase of 2.41 percent stake.
Further, In an exchange filing released, Infosys said that it will receive some exemptive relief from the US SEC as a result of the share buyback due to “conflicting regulatory requirements between Indian and U.S. laws for tender offer buybacks”.
Additionally, the company announced a strategic alliance with NYSE-listed HanesBrands Inc., a global leader in everyday iconic apparel. Under this ten-year engagement, the company will serve as HanesBrands’ strategic collaborator across their digital, business applications, and data landscape.
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Brokerage Recommendation
CLSA, one of the well-known brokerages globally, has given an ‘outperforming’ rating on this IT stock with a target price of Rs 1,861 per share, indicating a potential upside of 18 percent from the current price of Rs 1,529.30 per share.
The company posted steady growth in Q1FY26, with revenue rising 8 percent year-on-year to ₹42,279 crore, supported by consistent business momentum. Net profit improved 9 percent to ₹6,924 crore, reflecting strong operational efficiency. The results highlight stable performance, healthy margins, and the company’s ability to sustain profitability despite a rising base.
In Q1, deal wins totaled $3.8 billion across 28 contracts, with 55% being net new. Key wins included vendor consolidations exceeding $1 billion and a mega banking deal. Sector spread included communications, EURS, manufacturing, and financial services, with strong traction in the Americas. Management highlighted client trust, stability, and AI-driven innovation as key differentiators.
Management remains cautiously optimistic, citing differentiated performance and strong positioning. While macro conditions and client behavior show no major improvement, AI, vendor consolidation, and cost takeout are key growth drivers. Margin expansion is targeted, supported by Project Maximus and reduced third-party costs, though compensation, ramp-up expenses, and fixed cost absorption may weigh on near-term profitability.
Written by Abhishek Singh
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