Infosys Declared Interim Dividend of ₹23 Per Share, Reducing Retained Earnings and Total Equity

Infosys declared an interim dividend of ₹23 per equity share for the financial year 2025‑26 following its board meeting held on October 16, 2025. The announcement coincided with the release of the company’s second‑quarter results for FY26.

The record date for determining eligible shareholders was set as October 27, 2025, with the payment scheduled for November 7, 2025. This move continued the company’s established practice of distributing capital through periodic dividends.

Dividend Context and Corporate Capital Distribution

Infosys has maintained a semi‑annual dividend structure over recent years, designed to distribute a significant portion of its free cash flow. The interim dividend declared in October typically follows the company’s Q2 results, while the final dividend is proposed at year‑end.

This structure supports regular capital returns without altering the company’s broader operational objectives. The ₹23 interim payout fits within this framework, reflecting the company’s ongoing commitment to systematic capital distribution.

Q2 FY26 Performance Linked to Dividend Decision

During the announcement of the interim dividend, Infosys reported a strong operational performance for Q2 FY26. The company achieved a consolidated net profit increase of about 13% year‑on‑year, indicating stable demand across key client markets.

Revenue also grew approximately 9% in the same period, supported by resilient execution in digital and traditional service lines. These performance metrics formed the backdrop for the interim dividend declaration made in October 2025.

Accounting Impact on Retained Earnings and Total Equity

The declaration of an interim dividend has a direct and immediate effect on the company’s balance sheet. On the date of declaration, Infosys recorded a dividends payable liability, reflecting the obligation to distribute the ₹23 per share.

Simultaneously, retained earnings were reduced by an equivalent amount, lowering total shareholders’ equity to that extent. This adjustment was recognised in the financial statements for the quarter ended September 30, 2025, based on the number of eligible equity shares outstanding.

Infosys Share Price Performance

On January 23, 2026, Infosys share price opened at ₹1,667.20, compared to the previous close of ₹1,663.50. During the session, as of 2:16 PM IST, the stock had touched a high of ₹1,675.70 and a low of ₹1,662.30, and was trading at ₹1,664.30, up by 0.05%.

The stock recorded a traded volume of 37.51 lakh shares and a traded value of ₹625.88 crore on the NSE. The market capitalisation stood at ₹6,74,818.38 crore.

Read More: Infosys Share Price in Focus. 

Conclusion

Infosys’s declaration of a ₹23 interim dividend for FY26 aligns with its broader capital return strategy and follows strong Q2 performance. The accounting impact reduced retained earnings and total equity on the declaration date, reflecting standard financial treatment of dividends.

Market behaviour around the ex‑dividend date remained consistent with typical pricing adjustments. The dividend also carried standard tax withholding obligations communicated to shareholders in advance.

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