Infosys Q1 FY27 Outlook

Infosys reported a healthy Q1 FY27 with revenue of ₹48,211 crore (+14% YoY), net profit of ₹7,769 crore (+12.2% YoY) and an operating margin of 21.1%, while large deal wins remained strong at $3.6 billion. However, the company reduced the upper end of its FY27 revenue growth guidance to 3.0% from 3.5%, reflecting continued caution on discretionary IT spending. This weaker outlook has overshadowed the strong quarterly performance, leading to the ADR trading nearly 5% lower, indicating a weak opening sentiment. Technically, Infosys remains in a long-term downtrend, trading below its 20, 50, 100 and 200-day moving averages, with all major averages sloping downward. The RSI near 42 suggests momentum is still weak, while the MACD is improving but has not yet confirmed a bullish reversal. Immediate support is placed at ₹1,020-1,000, and a breakdown below this zone could trigger further weakness towards ₹950. On the upside, resistance is seen at ₹1,070-1,080, followed by ₹1,115 and a stronger hurdle around ₹1,180-1,190. For existing investors, the stock remains a Hold. The company's fundamentals continue to be strong with healthy margins, robust deal wins and growing AI-led business, making panic selling unnecessary. Fresh investors should avoid aggressive buying immediately after the results, as near-term sentiment is likely to remain weak. A better strategy would be to accumulate gradually on declines near key support levels or wait for a sustained move above ₹1,115 to confirm a trend reversal. Overall, the long-term story remains intact, but the near-term outlook is likely to stay volatile due to softer growth guidance. $INFY