Infosys delivered robust financial results for Q2FY27, with revenue increasing 3.4% quarter-on-quarter and 12.1% year-on-year to ₹3,040.4 crore. According to the company's latest results, dollar revenue rose 2.7% QoQ and 4.8% YoY in constant currency terms to $317 million. The company's net income jumped significantly by 53.7% QoQ and 66.8% YoY to ₹548.2 crore, demonstrating strong operational performance across key metrics. As per The Economic Times, Jefferies has identified opportunities for further valuation gains in select Indian IT stocks, with Infosys and TCS noted for potential rerating among large-cap companies.
According to the latest estimates from multiple brokerages, Infosys is expected to report revenue of around ₹49,211-49,250 crore for the July-September quarter, compared with ₹48,211 crore in the corresponding period last year. Consolidated net profit is expected to increase to ₹8,000-8,094 crore from ₹7,769 crore a year earlier, representing a 3.7-9.9% quarter-on-quarter growth. The Bengaluru-based IT major is likely to report 11% year-on-year rise in revenue and 8% increase in net profit for the September quarter. However, analysts expect India's second-largest IT services company to lower its full-year revenue growth guidance amid weak discretionary spending, AI-led pricing pressure and slower client decision-making. Large-deal TCV is likely to remain around $2.5-3 billion, according to various brokerage estimates.
As per Nuvama estimates, revenue may grow 1.7% QoQ in constant currency and 1.5% QoQ in USD terms, including 0.5% inorganic contribution and 0.5% boost from absence of provision. EBIT is expected to rise 12.7% YoY and 3.7% QoQ to ₹10,541 crore, with EBIT margin expanding 40 bps YoY and 30 bps QoQ to 21.4%. Deven Choksey Research expects revenue at ₹49,211 crore (up 10.6% YoY, 2.1% QoQ) with USD revenue around $514.8 crore, implying 1.3% CC QoQ growth. EBIT is projected at ₹10,293.7 crore with margin at 20.9%, down 20 bps QoQ due to wage revision and AI delivery investments. Mirae Asset Sharekhan estimates revenue at ₹49,170 crore (up 10% YoY, 2% QoQ) with adjusted net profit at ₹8,094 crore, up 9.9% YoY and 4.2% QoQ.
Despite the challenging environment, analysts foresee modest sequential revenue growth driven by acquisitions and enhanced operating margins. Emkay expects US dollar revenue to grow 1.5% sequentially, factoring in a 50-basis-point contribution from the Optimum acquisition and a 20-basis-point cross-currency headwind. Jefferies estimates constant-currency revenue growth of 1.3%, including a 60-basis-point contribution from acquisitions and a 50-basis-point benefit from the reversal of client termination impact. JM Financial is pencilling sequential constant-currency growth of 1.2%, translating into around 1% growth in US dollar terms. Jefferies forecasts a 35-basis-point improvement in margins, while JM Financial expects margins to rise by 30 basis points, benefiting from Project Maximus and the absence of higher costs associated with client termination. Mirae Asset Sharekhan expects margins to improve by around 58 bps YoY and 52 bps QoQ to 21.6%, driven by Project Maximus and reversal of high cost base.
The board of directors will meet on October 22 and 23 to approve Q2FY27 results and consider declaring an interim dividend, if any. As per Zee Business, the company has not confirmed whether it will declare a dividend during this meeting. Shares of Infosys surged during Wednesday's trading session ahead of the Q2 results announcement, with the IT stock trading 3.09% higher at ₹1,164.90 per share on BSE. The recent rally in IT stocks is supported by renewed interest in traditional IT expenditure following Accent Business's guidance for the next financial year. However, the earnings come at a time when Indian IT companies are facing pressure from subdued technology spending and growing concerns that AI-powered automation could affect conventional outsourcing contracts. Brokerages expect the Street will watch for a possible revision in FY27 revenue growth guidance, with Nuvama anticipating a trim to 1-2.5% CC YoY from earlier 1.5-3% range, while maintaining margin guidance.
