Infosys shares settled at ₹1,039 per share on NSE, down 0.8% following the company's disappointing Q1 results and revised guidance. According to Moneycontrol, the stock continues to reflect a "sell-on-rally" pattern, trading below both its 50-day and 200-day simple moving averages. Market analyst Mayank Jain from Share.Market by PhonePe advised existing investors to remain cautious, noting that a fall below the early July low could lead to further downside towards the July 2020 price gap near ₹900. For fresh investors, Jain recommended waiting for broader sector triggers and for the stock to regain and sustain levels above its 200-day moving average before considering new positions.
The company cut its full-year constant-currency revenue growth guidance to 1.5% to 3% from 1.5% to 3.5%, reflecting a more cautious view of macro improvement. Management attributed the revision to one-time client impact in the quarter, softer pricing and volumes, and an uneven macroeconomic backdrop. As reported by Moneycontrol, the company lowered the upper end of its FY27 constant currency revenue growth guidance to 3% from 3.5%, marking the second consecutive quarter of guidance reduction. The company kept its operating margin guidance unchanged at 20% to 22%, with margins holding steady at 21.1% in the quarter.
Infosys reported consolidated net profit of ₹7,769 crore for the June quarter, up 12% year-on-year, though this was below CNBC-TV18 estimates. According to Moneycontrol, revenue rose 14% to ₹48,211 crore, also falling short of expectations. Net profit declined 8.6% sequentially, while basic earnings per share increased 14.9% year-on-year to ₹19.19. The company posted free cash flow of $955 million and EPS growth of 15% year over year in INR terms. Large deal wins totaled $3.6 billion in total contract value, with 61% representing net new business. Voluntary last twelve-month attrition edged up to 13%, reflecting ongoing talent retention challenges.
AI services emerged as a bright spot with revenue now accounting for 8.2% of total revenue, up from 5.5% in the prior quarter, and growth running at double-digit rates quarter on quarter. As reported by Moneycontrol, Infosys has built more than 80,000 employees working on coding tools and related projects, with planned frontier engineers of 6,000 over the coming years. The company's AI workforce of over 80,000 employees is working on coding tools and related projects, demonstrating significant investment in AI capabilities. Management highlighted that the company's Topaz Fabric allows clients to maintain control of their data while using different AI models, providing a significant competitive differentiator.
JPMorgan downgraded Infosys to "Neutral" from "Overweight" and set a target price of ₹1,050, citing the company's revenue performance that was significantly below expectations and the FY27 revenue guidance reduction for the second consecutive quarter. According to Moneycontrol, the brokerage attributed the weaker outlook to subdued demand, AI-led pricing deflation and client-specific issues. The company continues to pursue acquisitions with a good pipeline, particularly in life sciences, healthcare, and insurance sectors, while maintaining its focus on AI-led transformation and market leadership. CEO Salil Parekh announced that Ashish Kumar Dash will succeed him as CEO from April 2027, with Dash undergoing CEO coaching over the next 2-3 months before taking on the role of managing a complex ₹20 billion company during a transformational period.
