Infosys is preparing to consider a proposal for an equity buyback at a board meeting scheduled for September 11, 2025, following a significant decline in its share price over the past year. Despite this near 25% drop year-over-year and broader challenges facing the Indian IT sector, Infosys announced positive first-quarter results with year-on-year growth in net profit and revenue.
The Indian IT sector has faced headwinds due to global economic uncertainties and reduced enterprise technology spending. Infosys’ stock performance has reflected this trend, mirroring the Nifty IT index’s 19% drop in the same timeframe. The proposed buyback is seen as a strategic initiative to bolster investor confidence and enhance shareholder value amid a challenging business environment.
Infosys adjusted its revenue growth guidance for fiscal year 2026, lowering the lower end to 1–3% in constant currency, reflecting caution about IT spending. The company’s operating margin for the quarter was 20.8%, slightly down both year-on-year and quarter-on-quarter, with margins expected to remain between 20% and 22% going forward.
Despite the pressured market, Infosys recorded a 9% consolidated net profit rise to ₹6,921 crore for Q1 ending June 2025, with revenues growing 8% year-on-year to ₹42,279 crore. In constant currency terms, revenues increased 3.8% year-over-year and 2.6% quarter-over-quarter. The company secured total deal wins valued at $3.8 billion during the quarter, with 55% being net new business, demonstrating ongoing demand for its services.
Segment-wise, the financial services vertical grew 5.6% in constant currency, manufacturing led with 12.2%, while retail and hi-tech segments recorded modest gains of 0.4% and 1.7% respectively.
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As of September 9, 2025, at 10:50 AM, Infosys share price is trading at ₹1,495.60 per share, reflecting a gain of 4.38% from the previous closing price. Over the past month, the stock has gained by 4.72%.
Infosys’ planned equity buyback on September 11, 2025, together with solid quarterly financials, underlines its resilience and commitment to shareholder value despite sector-wide headwinds. The move aims to reassure investors navigating uncertain economic conditions in the global IT market.
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Published on: Sep 9, 2025, 11:56 AM IST
Team Angel One
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