Infosys Update: Buyback, Margins & FY26 Outlook
Infosys is in the spotlight again, driven by a big capital-actions move and steady business performance amid macro uncertainty.
Infosys has approved its largest ever share buyback: ₹18,000 crore through the tender-offer route.
Buyback price is ₹1,800 per share, a ~19% premium over recent trading prices.
About 10 crore shares will be bought back, representing roughly 2.41% of Infosys’s equity.
Financials & Performance
For FY25, Infosys delivered 4.2% revenue growth in constant currency (CC) and an operating margin of ~21.1%, up ~0.5% YoY.
Free cash flow hit a record US$4.1 billion, which is roughly 129% of its net profit, giving the company strong cash strength.
However, net profit for Q4 FY25 fell ~12% YoY to ₹7,033 crore. Revenues rose ~7.9% YoY but missed some expectations.
For FY26, Infosys has given a cautious guidance: revenue growth in constant currency of 0-3%, and margins in the 20-22% range.
It’s continuing initiatives like Project Maximus to drive efficiencies, cost control, automation & utilization improvements.
The buyback shows management confidence in its cash flows and capital structure. EPS and ROE should get a boost as equity base shrinks.
Weak guidance signals risks ahead: sluggish growth environment, possible delay in client spending, global uncertainty & tight budgets for IT projects.
Strong performance in cash flow and margin expansion provide buffer against downside. Investors who buy on dips may find favorable risk-reward.
Infosys