24 Apr , 2026 By : Debdeep Gupta
Infosys Ltd shares fell as much as 5 percent in the late morning trade on Friday after the company reported its Q4 FY26 results and issued a subdued growth outlook. The IT stock declined to an over 5-year low today, and was the top loser on benchmark Nifty 50 index.
Infosys stock was trading at Rs 1,178 at around 11:20 am, compared with its previous close of Rs 1,231.8 on NSE. The IT giant’s ADR had already declined 4.01 percent overnight following the results announcement, signalling a weak start for the stock.
Infosys reported a strong January-March quarter on the bottom line. Net profit rose 27.8 percent quarter-on-quarter to Rs 8,501 crore, aided by margin expansion and lower tax outgo. However, revenue growth remained modest at 2 percent sequentially, while FY27 guidance came in at 1.5-3.5 percent constant currency growth, indicating continued demand uncertainty.
Brokerages flagged the weak growth outlook as a key concern. Citi maintained a ‘neutral’ rating and cut its target price to Rs 1,300. It cited revenue and margin miss along with slower decision-making and rising competition. Jefferies also retained a ‘hold’ rating with a target price of Rs 1,235. It said that weak guidance, lower deal wins and headcount decline could weigh on growth.
Motilal Oswal highlighted a tough outlook, pointing to AI-led deflationary pressures and a 33 percent sequential decline in total contract value (TCV).
However, some brokerages remained constructive. Nomura and HSBC retained ‘buy’ ratings. They cited stable margins, expected recovery driven by deal wins and AI partnerships, and potential upside if growth trends move towards the upper end of guidance.
Infosys stock has declined 16.3 percent over the past one year, compared with a 0.3 percent decline in the Nifty 50. The company’s market capitalisation stands at around Rs 5.15 lakh crore.
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