Despite robust earnings and healthy deal momentum, Infosys shares fell over 2% on Saturday’s trade, touching a low of Rs. 1,440 on the NSE. The stock has declined nearly 25% year to date, underperforming the , which gained 8.2% during the same period. Analysts attribute the stock weakness to cautious revenue guidance and subdued near-term growth expectations.
Infosys lowered its constant currency FY26 revenue growth target to 23%, which is a slight improvement on its earlier target of 13%. However, such a range was considered conservative even with the solid deal flow among investors. The company held its operating margin projection at 20% – 22% this year, which indicated that the company was stable in terms of profits but with minimal growth potential.
Large brokerages continued to have of the stock. Nomura restated its Buy rating and target price of Rs. 1,720, based on stable margins and improved-than-anticipated revenues.
A ‘Buy’ call was still held by Jefferies with a Rs. 1,700 target, stating that the Q2 performance was expected to be in line, but the second half performance is still likely to be weak. HSBC also maintained a ‘Buy’ rating at Rs. 1,730 target, with cost efficiencies, rupee loss, and productivity gains using AI as among the positives.
