Infosys share price in focus today ahead of Q2 results; IT giant seen posting muted growth, stock down 29% YTD

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Infosys Share Price: Shares of Infosys are expected to remain in focus on Friday, October 23, as the Nifty 50 IT major is scheduled to announce its Q2 FY27 results later in the day. The company's quarterly performance, revenue growth outlook, operating margins and large deal wins are among the key factors investors will track.

Infosys shares settled at Rs 1,153.35 in the previous trading session, declining 1.3 per cent or Rs 14.65. According to the NSE's official website, the company had a market capitalisation of Rs 4,68,061.33 crore.

Infosys Q2 Results Preview

Revenue and Profit Estimates

Infosys is expected to report modest sequential growth in revenue and net profit for the September quarter, with investors closely tracking its revenue growth outlook and operating margin performance.

Revenue in rupee terms is projected to increase 1.86 per cent quarter-on-quarter (QoQ) to Rs 49,107 crore from Rs 48,211 crore in the previous quarter. In dollar terms, revenue is estimated at USD 5,162 million, representing a 1.30 per cent QoQ increase from USD 5,096 million.

Net profit, or profit after tax (PAT), is estimated to rise 1.74 per cent to Rs 7,904 crore from Rs 7,769 crore in the previous quarter.

Earnings before interest and taxes (EBIT) are expected to increase 2.37 per cent to Rs 10,404 crore from Rs 10,163 crore. The EBIT margin is projected to expand 11 basis points to 21.19 per cent.

Constant currency revenue growth is expected at 1.6 per cent QoQ, compared with 1 per cent in Q1 FY27. Infosys' large deal total contract value (TCV) is estimated at around USD 3 billion, compared with USD 3.1 billion in Q2 FY26.

The company is expected to retain its FY27 operating margin guidance of 20-22 per cent. However, brokerages expect Infosys to lower its FY27 constant currency revenue growth guidance to 1.5-2.5 per cent year-on-year, from 1.5-3 per cent in Q1 FY27.

Infosys Q2 Results: Key Monitorables

Several factors are expected to remain in focus during the results announcement, including October wage hikes, employee costs and planned graduate hiring of 20,000 in FY27.

Investors will also track acquisition-related margin contributions and the benefits of the weak rupee.

Infosys Share Price Performance

Infosys shares have delivered mixed returns across different time frames. The stock declined 0.68 per cent over the past week but gained 13.02 per cent over the past month.

Despite the monthly recovery, Infosys shares have fallen 29.23 per cent year-to-date (YTD). Over longer periods, the stock has declined 24.54 per cent in the past year, 18.12 per cent over three years and 32.94 per cent over five years.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)

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