After Infosys announced a 21% year-over-year increase in consolidated net profit for the quarter ended March 31, 2026, at Rs 8,501 crore, compared with Rs 7,033 crore in the same period last year, its shares fell as much as 3.3% to their day’s low of Rs 1,199 on the NSE on Friday. ADRs for Infosys also decreased, closing 4% down.
Operational revenue for Q4FY26 was Rs 46,402 crore, up 13.4% from Rs 40,925 crore for the same period in the prior fiscal year. From Rs 6,654 crore reported in Q3FY26, profit after tax increased by 28% on a sequential basis. Compared to the October–December quarter’s revenue of Rs 45,479 crore, revenue increased by 2% quarter over quarter.
The reported quarter’s operating margin was 21%, up 260 basis points from the prior quarter but flat year over year. The company’s dollar revenue was $5,040 million, down 1.2% year over year but up 6.6% sequentially.
Infosys has maintained an operating margin expectation of 20% to 22% while guiding for revenue growth of 1.5% to 3.5% in constant currency for FY27.
What do experts say?
Jefferies has lowered its target price to Rs 1,235 and kept a Hold rating on Infosys shares, indicating little room for increase or decrease from current levels. The company’s March quarter results were largely in line with projections, according to the brokerage, but the FY27 revenue growth range of 1.5% to 3.5% was less than anticipated. It also identified a 19% year-over-year fall in net new business wins and a 3% quarter-over-quarter decline in personnel as major issues.
According to Jefferies, the upper end of the guidance range expects some improvement, while the lower end represents a deteriorating macroenvironment and ongoing geopolitical concern. The brokerage described the $1.3 billion net new contract wins for Q4 as lackluster, down 19% year over year. This is consistent with the company’s conservative growth strategy, as is the significant workforce decrease that occurred during the quarter.
While lowering its target price from Rs 1,760 to Rs 1,380, an increase of 11% from current levels, Morgan Stanley has kept its equal-weight rating on the price of Infosys shares. The firm reported a poor prognosis for revenue growth and a miss in Q4 across key metrics. It pointed out that the FY27 revenue range of 1.5% to 3.5% indicates a lack of significant acceleration, with organic growth anticipated at about 2.5%, about in line with peers.
The Wall Street giant also noted that the near-term growth picture is being impacted by a big European client’s ramp-down. The competitiveness of the core company is being impacted by pricing pressure and productivity advantages driven by AI. With challenges from wage increases and M&A activity, margins are predicted to stay between 20.5% and 21.0%.
Morgan Stanley stated that currency tailwinds could provide some support for earnings per share even though projections have been cut. With the company valued at about 15.8 times price-to-earnings, it was also observed that valuations are now correcting closer to peer levels, which may provide some protection against declines.
With an unchanged target price of Rs 1,450, Motilal Oswal has maintained a buy recommendation on Infosys shares, indicating a 17% increase from current levels. The company’s FY27 revenue growth outlook of 1.5% to 3.5% in constant currency, or 1.25% to 3.25% organic, is below its upper-end estimates, according to the brokerage, and indicates increasing pressure on the current book of business.
It stated that while productivity advantages are transferred to customers, the growing use of AI is compressing the core business. The firm anticipates that the deflationary impact will continue, even though a portion of this tendency may also be attributed to intense competition and pricing pressures in a weak demand environment.
In comparison to FY26 growth of 3.1% in constant currency terms, Motilal Oswal has factored in growth at the midpoint of the guidance at about 2.5% organic for FY27.
With an unaltered target price of Rs 1,550, HDFC Securities has kept its buy rating on Infosys’ stock. The brokerage saw that delayed client decision-making and seasonal variables affected Q4 revenue.
It further stated that the company’s year-over-year revenue growth forecast for FY27, which ranged from 1.5% to 3.5%, fell short of projections due to persistent macro uncertainties. Clients continue to prioritize cost optimization over major transformation projects, and the demand environment is still tepid.
Estimates have been lowered by about 2% to 3% due to the slower growth expectation, and the company is now worth 18 times its projected earnings per share for March 2028.
