Infosys Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Infosys is currently navigating a complex landscape marked by macroeconomic uncertainties and a significant shift towards AI-driven service delivery. Management has acknowledged challenges, including client-specific program terminations and pricing pressures, which have led to a downward revision in revenue guidance for FY27 to a range of 1.5% to 3%. Despite these headwinds, the company is strategically focused on expanding its AI capabilities, with AI services now contributing 8.2% of total revenue and a robust pipeline of large deals indicating potential for future growth. Vista's financial outlook reflects stable revenue growth and margins, supported by the company's commitment to maintaining its EBIT margin guidance of 20-22%. The anticipated leadership transition to Ashiss Dash as CEO is expected to provide continuity and strategic focus, although it introduces some near-term uncertainty. Overall, while Infosys faces immediate challenges, its emphasis on AI and large deal opportunities positions it for long-term growth. Key opportunities include the expansion of AI services, a strong large-deal pipeline, and a focus on operational efficiency. Conversely, watchpoints include client spending constraints, competitive pricing pressures, and the impact of macroeconomic conditions on decision-making cycles
Why We Like This Stock
- Strong growth in AI services, now contributing 8.2% of total revenue
- Robust large-deal pipeline with significant contributions from vendor consolidation
- Management's commitment to maintaining EBIT margins within the 20-22% range
Things To Watch Out For
- Downward revision of revenue guidance for FY27 to 1.5%-3% due to client-specific issues
- Cautious client spending and pricing pressures impacting revenue visibility
- Upcoming leadership transition may introduce near-term strategic uncertainties
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 153,670 | 162,990 | 178,650 | 188,365 | 200,309 |
| Profit Before Tax (Cr.) | 35,703 | 37,317 | 41,284 | 42,356 | 45,194 |
| PBT Margin | 23.2% | 22.9% | 23.1% | 22.5% | 22.6% |
| Net Profit (Cr.) | 27,390 | 25,281 | 29,138 | 30,024 | 31,998 |
| Earnings Per Share | 67.6 | 62.3 | 71.9 | 74.0 | 79.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| JPMorgan | ► Neutral | 1,050 | 09-Sep-2026 |
| Citigroup | ► Neutral | 1,115 | 03-Sep-2026 |
| UBS | ▲ Buy | 1,445 | 25-Aug-2026 |
| Kotak Securities | ► Add | 1,200 | 21-Aug-2026 |
| CLSA | ► Hold | 1,147 | 19-Aug-2026 |
| Anand Rathi | ▲ Buy | 1,270 | 24-Jul-2026 |
| BofA | ▲ Buy | 1,300 | 24-Jul-2026 |
| Elara Capital | ► Accumulate | 1,150 | 24-Jul-2026 |
| HSBC | ▲ Buy | 1,110 | 24-Jul-2026 |
| ICICI Securities | ▼ Reduce | 940 | 24-Jul-2026 |
| IDBI Capital | ► Hold | 1,137 | 24-Jul-2026 |
| Jeffries | ► Hold | 1,020 | 24-Jul-2026 |
| Moneycontrol | ► Equalweight | nan | 24-Jul-2026 |
| Morgan Stanley | ► Equalweight | 1,105 | 24-Jul-2026 |
| Motilal Oswal | ▲ Buy | 1,170 | 24-Jul-2026 |
| Nomura | ▲ Buy | 1,290 | 24-Jul-2026 |
| Goldman Sachs | ► Hold | 1,140 | 30-Jun-2026 |
| Axis Securities | ► Hold | 1,330 | 24-Apr-2026 |
| Choice Equity | ▲ Buy | 1,500 | 24-Apr-2026 |
| DAM Capital | ► Add | 1,300 | 24-Apr-2026 |
| HDFC Securities | ▲ Buy | 1,550 | 24-Apr-2026 |
| Prabhudas Liladhar | ▲ Buy | 1,570 | 24-Apr-2026 |
Company Overview
Show Company Profile
Infosys Limited provides consulting, technology, outsourcing, and digital services worldwide. The company offers insight services, such as applied and generative AI, sustainability services, and Infosys Topaz, an AI-first set of services, solutions, and platforms; blockchain, Internet of Things, and engineering services; cybersecurity and quality engineering services; and enterprise agile DevOps, API economy and microservices, application modernization, and digital process automation. It also provides digital supply chain, Microsoft business application services, Microsoft cloud business, Oracle, SAP, service experience transformation, Salesforce, energy transition, network transformation services, infrastructure services, global capability center, and Infosys Cobalt, a suite of services, solutions, and platforms. In addition, the company offers experience services, including digital marketing, digital commerce, digital interactions, digital workplace services, digital experience, metaverse, and Infosys Aster, a marketing suite; and EdgeVerve, Infosys Finacle, Infosys Live Enterprise Suite, Infosys Cortex, Infosys Meridian, Panaya, Infosys Equinox, Infosys Topaz Fabric, Infosys Wingspan, Infosys Helix, and Infosys Polycloud platforms. It serves aerospace and defense, agriculture, automotive, chemical manufacturing, communication services, consumer packaged goods, education, engineering procurement and construction, financial services, oil and gas, private equity, professional services, public sector, healthcare, high technology, industrial manufacturing, information services and publishing, insurance, life sciences, logistics and distribution, media, entertainment, mining, retail, semiconductor, travel and hospitality, utilities, and waste management industries. The company was formerly known as Infosys Technologies Limited and changed its name to Infosys Limited in June 2011. Infosys Limited was incorporated in 1981 and is headquartered in Bengaluru, India.