BENGALURU, July 23, 2026, 02:39 IST
- From July 16 to Wednesday, Infosys trailed Nifty IT by 2.2 percentage points.
- Early projections indicate yearly revenue growth between 13.7% and 14.9%, while sequential organic growth remains close to 1%.
- Results are due after Thursday’s market close, expected at about 3:45 p.m. IST.
Infosys Limited’s shares declined 2.8% since July 16, trailing the Nifty IT index’s 0.6% fall ahead of Thursday’s results, closing data showed. Indian cash markets were shut at the time of report.
The pre-result gap increases focus on the strength of growth. Early projections indicate a solid rupee performance, although underlying organic growth appears limited.
Analysts expect quarterly revenue between ₹480.86 billion and ₹486.59 billion. This range signals annual growth of 13.7%-14.9%. Certain projections indicate organic sequential growth of just 0.9%-1.0%.
Two projections estimate that acquisition support will contribute between 0.8 and 1.0 percentage point to sequential growth. Another projection expects Optimum Healthcare to boost annual revenue by 1.2 points. Any raised guidance will need to be distinguished from the impact of mergers and acquisitions.
Infosys ended Wednesday at ₹1,052.10, registering a 1.99% decline. Its American depositary receipts in New York dropped around 1.75% to $10.93. The stock remains approximately 39% under its high from February.
Tata Consultancy Services NSE:TCS, HCL Technologies NSE:HCLTECH, and Wipro NSE:WIPRO recorded smaller losses. On Wednesday, shares were down 0.52%, 0.18%, and 0.23%, respectively.
The divergence comes after a widespread relief rally. Nifty IT rose 4.3% last week, marking its biggest weekly advance since October 2025.
The yearly and quarterly metrics should not be compared directly. Nonetheless, they illustrate why investors distinguish between reported growth and underlying demand.
| Measure | Preliminary Q1 estimate | Investor read-through |
|---|---|---|
| Rupee revenue | ₹480.86-₹486.59 billion; rises 13.7%-14.9% from previous year | Solid print for headline revenue |
| Constant-currency revenue | 2.0%-2.2% increase quarter on quarter | Benefit from acquisitions factored in |
| Organic revenue | Roughly 0.9%-1.0% quarter over quarter | Indicator of underlying demand |
| Net profit | ₹80.49-₹81.73 billion; grows 16.0%-18.1% year on year | Healthy annual profit advance |
| Operating margin | Predominantly 21.2%-21.4% | Margins largely unchanged |
The numbers are early projections from brokerages and do not represent official company forecasts.
Infosys projects constant-currency growth for FY27 between 1.5% and 3.5%. The company maintains an operating margin range of 20%-22%. Broker estimates place the upper forecast at 3%, potentially rising to 4% following acquisitions.
In April, Chief Financial Officer Jayesh Sanghrajka stated client budgets in straightforward terms. “Client spending is guarded, with greater focus on cost optimization engagements as against growth-led transformation programs.” Infosys additionally noted flat volumes for FY26.
Peer results last week showed a mixed picture. Wipro reported revenue and profit below forecasts, but TCS and HCLTech surpassed revenue estimates. Wipro’s deal wins dropped to $3.37 billion from $5 billion.
The week starts with Thursday’s announcement, followed by market movements on Friday. Management is scheduled for a 5:30 p.m. call to address questions on organic growth, deal valuation, and demand in banking.
An increased guidance might not end the discussion. Shareholders are expected to weigh any changes against the impact from the acquisition.
Risks: Brent’s surge past $95 on Wednesday underscored ongoing geopolitical risks. Movement in the rupee, pricing challenges from AI, and project delays may impact the company outlook.
A more favourable scenario requires a clearer combination of elements. Increased organic growth, consistent margins, and a greater number of net-new deals would be more significant.
