Synopsis:
Infosys Ltd’s share rose over 4 percent after announcing a board meeting on Thursday to discuss a proposed share buyback.
India’s second-largest IT company is in focus as it holds a board meeting on Thursday to discuss a proposal of share buyback, potentially worth Rs. 13,560 crore at an average premium of 25 percent.
With the market capitalization of Rs. 6,22,781.65 crore, the shares of Infosys Ltd trading at Rs. 1,499.60, up by 4.65 percent from its previous day’s close price of Rs. 1,432.90 per equity share, and it has reached an intraday high of Rs. 1,502.80.
What’s the News?
According to sources, Infosys will consider its first share buyback in three years at a board meeting on September 11, 2025, potentially worth Rs. 13,560 crore at an average premium of 25 percent.
The tech major typically uses around 30 percent of its cash and buys back 14–15 percent of its net worth during such programs. The company currently has Rs. 45,200 crore in cash and cash equivalents, with a net worth of Rs. 95,350 crore.
This would mark Infosys Ltd’s fifth buyback since 2017, following the previous one in October 2022. The move aligns with its capital return policy announced in Q4 FY24 and is expected to provide a cushion against macroeconomic volatility while enhancing shareholder value.
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Analyst Outlook
Morgan Stanley expects Infosys to return about 85 percent of its free cash flow over five years via dividends and buybacks, with the upcoming share buyback likely to cover 1.3–2 percent of total equity.
Consensus target price stands at Rs. 1,743 (21.6 percent upside), with estimates ranging from Rs. 1,440 (0.5 percent upside) to Rs. 2,085 (45.5 percent upside) from yesterday’s closing price of Rs. 1,432.90.
About the Company & Others
Infosys Limited is an Indian company that provides consulting, technology, outsourcing, and digital services in industries such as financial services, retail, communication, energy, manufacturing, high-tech, and life sciences.
Its primary offerings include application management, product engineering, infrastructure management, and enterprise application solutions. Key products and platforms include Finacle, Edge Suite, Panaya, Infosys Equinox, Infosys Helix, Infosys Applied AI, Cortex, and Stater digital platform. The company also runs Danske Bank’s IT center in India.
In Q1FY26, the company reported revenue of Rs. 42,279 crore, up 7.5 percent YoY from Rs. 39,315 crore in Q1FY25 and 3.3 percent QoQ from Rs. 40,925 crore in Q4FY25. Profit stood at Rs. 6,924 crore, rising 8.7 percent YoY from Rs. 6,374 crore but slightly down 1.6 percent QoQ from Rs. 7,038 crore in the previous quarter.
Written by Akshay Sanghavi
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