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Infosys’ shares fell on Friday, even as most brokerages maintained a bullish outlook after it reported better-than-expected Q2 FY26 results
Infosys Shares Post Q2
Infosys Share Price Today: Infosys’ share price fell as much as 1.5 percent on Friday, even as most brokerages maintained a bullish outlook on the stock after the IT major reported better-than-expected Q2 FY26 results. Shares declined to an intraday low of Rs 1,447.3 on the NSE in early trade, extending Thursday’s modest losses.
Analysts at Nomura, Jefferies, and HSBC reiterated ‘buy’ ratings with target prices ranging between Rs 1,700 and Rs 1,730 per share, citing steady execution, resilient margins, and an improving deal pipeline. Despite the positive sentiment, Infosys shares have fallen nearly 25 percent over the past year, sharply underperforming the Nifty 50’s 3.4 percent gain. The latest target prices imply an upside of up to 17 percent from Thursday’s closing levels.
For the September quarter, Infosys posted a 13.2 percent year-on-year rise in consolidated net profit to Rs 7,364 crore, beating Street estimates. Revenue grew 8.6 percent year-on-year to Rs 44,490 crore, with constant currency growth of 2.9 percent annually and 2.2 percent sequentially. Operating margin came in at 21 percent—broadly stable year-on-year but marginally below expectations. The company declared an interim dividend of Rs 23 per share, up 9.5 percent from last year.
Infosys narrowed its FY26 constant currency revenue growth guidance to 2–3 percent from 1–3 percent earlier while maintaining its operating margin range at 20–22 percent. Large deal wins during the quarter rose 29 percent year-on-year to $3.1 billion, while free cash flow jumped 38 percent to Rs 9,677 crore, or 131 percent of net profit. The company also completed its Rs 18,000-crore share buyback in Q2.
Nomura retained a ‘buy’ rating with a target price of Rs 1,720, noting a slight revenue beat and expecting margins to hold near 21 percent in FY26. Infosys currently trades at about 19.8x FY27 EPS, the brokerage said.
Jefferies also maintained a ‘buy’ call with a target of Rs 1,700, describing Q2 performance as ‘in line’ but cautioning that the narrowed guidance suggests a softer second half, despite a healthy deal pipeline. The brokerage projects a 6 percent CAGR in EPS over FY26–28, supported by margin resilience and efficiency gains.
HSBC reiterated its ‘buy’ rating with a target of Rs 1,730, highlighting stable margins aided by cost optimisation, rupee depreciation, and AI-driven productivity improvements. The brokerage added that improving macro conditions in the US could revive enterprise technology spending in 2026, positioning Infosys favourably among large-cap IT peers.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
October 17, 2025, 10:29 IST
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