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We will now wrap up the blog. Good night, folks!

Infosys ADR erases early gains, down over 3%

As the right time comes, we will start to share contribution from AI; doing that internally at the moment.

Infosys MD & CEO Salil Parekh said that the company will continue to look at more acquisitions in the future and will see which ones materialise.

Out of the 2.2% constant currency growth that Infosys reported during the quarter, 20 basis points came from acquisitions, according to Parekh.

– North America contributed 56.3% to overall revenue

– 31.7% of overall topline came from Europe

– Rest of the World contributed 8.9% to revenue

– India contributed 3.1% to the topline

– Do not see any major disruption due to the H-1B visa issue

– Only a minority dependent on H-1B visa and with the current partnerships, expect no disruption

Infosys won deals worth $3.1 billion during the quarter, 67% of those were net new.

The street was anticipating the deal wins figure to be around $3 billion as well.

– Net profit up 6.4% sequentially to ₹7,365 crore

– Revenue in rupee terms up 5.2% from the previous quarter to ₹44,490 crore

– EBIT up 6.2% from previous quarter to ₹9,353 crore

– EBIT margin expands 20 basis points to 21% from 20.8% in June

– Net profit at ₹7,365 crore, marginally higher than CNBC-TV18 poll of ₹7,266.5 crore

– Rupee revenue at ₹44,490 crore, higher than CNBC-TV18 poll of ₹44,142 crore

– EBIT at ₹9,353 crore, in-line with poll estimates of ₹9,385 crore

– EBIT margin at 21%, marginally lower than CNBC-TV18 poll of 21.3%

Infosys now sees financial year 2026 revenue growth to be between 2% to 3%.

The earlier projection was for growth to be between 1% to 3%.

EBIT margin guidance has been left unchanged at 20% to 22% for the full year.

Infosys reported its Q2 results after market hours on Thursday.

The company has raised the lower end of the guidance band.

EBIT margin guidance has been left unchanged.

Shares of Infosys ended off the lows of the day, but closed below the flat line.

The stock ended 0.2% lower at ₹1,470.9.

Infosys had won deals worth $3.8 billion during the June quarter, compared to $2.6 billion in March.

55% of the large deal wins were net new ones.

As many as 51 analysts have coverage on Infosys ahead of its Q2 results.

36 of those analysts have a “buy” recommendation on the stock, 13 of them have a “hold” rating.

Two analysts have a “sell” recommendation.

Shares of Infosys are witnessing some choppy moves ahead of the results announcement.

The stock currently trades 0.34% lower ahead of earnings at ₹1,469.2.

Shares are down 3% in the last one month and have declined 22% so far in 2025.

While timelines will be released in due course, based on historical experience, it could take 3-4 months to fully execute.

Give current timing, see this as a vote of confidence on stability in FY26 guidance in the upcoming results.

– Expect 3.8% year-on-year revenue growth in US Dollar terms for FY26, including a 40 basis points contribution from acquisitions.

– Stock trades at 20 times financial year 2027 forward Earnings Per Share and offers and attractive dividend yield of 4.4%.

– Nomura has a “buy” rating on Infosys with a price target of ₹1,880.

– Not seeing any change in demand outlook

– Focus on cost optimization over weak discretionary spend

– Overall IT budgets will expand and will offset deflationary pressure

– Program cancellations and the impact on demand from verticals affected directly by the imposition of US tariffs

– Pricing pressure in large deal

– Key markers for improvement in discretionary demand

– Pace of enterprise AI adoption and resultant pricing and deflationary pressure

– H-1B dependence, measures to reduce it and margins implications

We believe that Infosys will raise FY2026 revenue growth guidance to 2-3% from 1-3% earlier. The revised guidance will imply a decline in revenues in the second half. Our guidance estimates do not include the recently announced acquisition of Versent Group.

– Forecast revenue growth of 1.8% sequentially driven by higher billing days, and continued strength in the financial services vertical

– Do not assume any incremental revenues from the sale of third-party items

– Expect stable EBIT margins both QoQ and YoY

– Expect large-deal TCV of $3 billion, up 22% YoY but down sequentially

– Constant currency revenue growth of 2.6% Versus estimates of 1.5% sequentially

– EBIT margin at 20.8% compared to estimate of 20.7%

– EBIT margin at 20.8% from 21% QoQ

– Net profit of ₹6,920 crore versus poll of ₹6,719 crore

– Constant currency revenue growth seen at 1.8% sequentially

– Financial services sector may continue to do well

– Recent acquisition of 75% stake in Versant Group, a subsidiary of Telstra for ₹13,000 crore not factored in to estimates

– Deal is likely to close in the second half of FY26.

– Board had approved a buyback worth ₹18,000 crore

– Buyback to be done via tender offer route

– Buyback price of ₹1,800 per share

– Infosys will be buying back 2.4% of outstanding equity

– Largest buyback done by the company

– Outlook on client discretionary spend

– H1-B visa hike and impact on onsite cost

– Wage hike cycle undecided as of now

– Salary hike was rolled out in two phases, first in January and then in April

The street is hopeful that the full year constant currency revenue growth guidance will be tightened from 1% to 3% to 2% to 3%.

Margin band is likely to be maintained between 20% to 22%.

– Margins seen up 50 basis points on a sequential basis.

– Tailwinds from rupee depreciation will be offset by the normalization of provision of post-sales client support compared to a reversal benefit of 40 bps in the June 2025 quarter.

– US Dollar revenue seen 2.2% higher at $5,047.8 million

– Rupee revenue seen 4.4% higher at ₹44,142 crore

– EBIT seen at ₹9,385 crore from ₹8,803 crore

– EBIT margin seen at 21.3% from 20.8%

– Net profit seen at ₹7,266.5 crore from ₹6,921 crore

– Numbers are from a CNBC-TV18 poll and compared quarter-on-quarter

The street will be looking forward to Infosys giving guidance along with its results.

HCLTech left its guidance unchanged for the rest of the year, as did Tech Mahindra, but the latter tempered those expectations for FY27.

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