Infosys: Strong Cash, Strong Deals, Weak Guidance

, India’s second-largest IT services company, closed 2.03% lower at ₹1,161.00 on the NSE today. It was the Nifty’s top loser on a day the index rose 1.68%. The fall looks like money rotating out of IT plus the lingering effect of last week’s guidance cut. The cash flow and deal wins are solid, but until growth guidance improves, a recovery is likely to be slow. Why it fell today: IT fell about 0.5% while energy, metals and PSU banks led a 1,233-point Sensex rally, so investors shifted into those sectors. Guidance overhang: Infosys cut its FY27 revenue guidance on Oct 23, and the stock is down about 28% this year on concerns about AI disruption and weak client spending. Not the dividend: The ₹26 interim dividend has a Nov 3 record date, so it shouldn’t explain today’s fall, and a new 1.1 million sq ft Hyderabad campus didn’t lift the stock. Q2 FY27 results: Net profit was ₹7,823 crore (up 6.2%) on revenue of ₹49,244 crore, and the operating margin held at 21.0%, about 30 basis points below UBS’s expectation. Cash position: Free cash flow was $928 million (113% of net profit), and the company is debt-free with $4.7 billion in cash. Guidance cut twice: FY27 revenue growth guidance is now 1-2% in constant currency, down from 1.5-3%, with margin guidance unchanged at 20-22%.