Infosys Q2: Rs 7,823 crore profit, FY27 guide cut to 1-2%

Infosys reported Q2 FY27 on Friday 23 October. Net profit was Rs 7,823 crore, up 6.2 percent from Rs 7,364 crore a year earlier and flat on Q1’s Rs 7,769 crore. Revenue from operations was Rs 49,244 crore, up 11 percent year on year. The operating margin was 21 percent, flat on the quarter. Consensus was Rs 7,904 crore of profit, so the print came in about 1 percent below. The guidance is the test I set on 10 October. FY27 constant-currency revenue growth is now 1 to 2 percent, down from 1.5 to 3 percent. My second-half test needed the guide to hold its 1.5 percent floor, and the new range reaches below it. The margin held above the 20 percent band. I found no PERM quantification in the sources I read. Infosys [][***** closed at Rs 1,137.78 on StockGro’s 3:59 PM IST print on 23 October, down 0.6 percent from Rs 1,144.55. A second source puts the BSE settlement at Rs 1,154.50, flat. The stock is 16 percent above my Rs 980.30 exit and 1.6 percent below the Rs 1,156 resistance, the 1 September close. My view: hold, not a fresh entry. The first-half zone is Rs 980 to 1,015, and the price is well above it, so fresh money waits there. The second half is off. The case for holding rested on the 1.5 percent floor, so holders now rest on the exit test alone. My exit is a close below Rs 980.30, the 1 October level, unchanged. The guide cut does not trigger it. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.