Infosys Limited (INFY)
Large CapIT stocks · Large cap · NSE
Infosys Limited is a global IT services and consulting firm, leveraging its Topaz Fabric for AI and Cobalt for cloud to drive digital transformation. It focuses on AI strategy, engineering, data, process, legacy modernization, physical AI, and trust, serving diverse sectors including Financial Services, Communications, and Manufacturing.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
high confidence · 20/37 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Average · 32/100margin compression · Rev +14% YoY · PAT +12% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹48,211 Cr | +14.0% | +3.9% |
| EBITDA | ₹11,409 Cr | +14.7% | +2.2% |
| Operating margin | 24.0% | +0 bps | +0 bps |
| PAT | ₹7,775 Cr | +12.3% | -8.6% |
| PAT margin | 16.1% | -25 bps | -221 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Infosys reports 3.1% FY26 CC revenue growth, 4.1% YoY in Q4, with strong $14.9bn large deal wins. FY27 guidance set at 1.5-3.5% CC revenue growth and 20-22% operating margin, reflecting AI opportunities amidst competitive intensity and productivity impacts.
The modest FY27 revenue guidance (1.5-3.5% CC) suggests ongoing demand softness and competitive pressures, despite strong large deal wins and a clear AI strategy. Management acknowledges AI productivity impact and continued competitive intensity as headwinds.
AI Services
We see a large addressable market for AI services across six areas. The growth in AI services is very strong, and it is growing very nicely.
Large Deal Wins
Large deals were very good, $14.9 bn for the full year, 28% higher than previous year, with 55% net new. Large deal pipeline continues to remain strong.
Financial Services Vertical
We expect acceleration of growth in Financial Services. We are strategic AI partner for 18 out of the top 20 clients in this vertical.
Energy, Utilities, Resources & Services (EURS)
We expect acceleration of growth in Energy, Utility, Resources and Services vertical. Demand environment remains constructive supported by a strong large deal pipeline.
Fresher Hiring
We onboarded more than 20,000 freshers in FY26 and expect to hire a similar number in FY27.
Utilization (including trainees)
Utilization, including trainees, was at 81.1% for FY26 reflecting the investment made towards creating future capacity.
Client AI Adoption
Financial Services clients are adopting AI quickly, moving to build agents for KYC, AML, and credit processes, and using foundation models for legacy modernization.
Vendor Consolidation
Clients continue to prioritize cost reduction and operational efficiency which is a driving vendor consolidation, especially in the EURS segment.
Underlying Economic Resilience
The underlying resilience of some of the economies where we have the big markets is pretty good, with good investments and AI growing well.
Competitive Intensity
As we look ahead to the financial year 2027, we see continued competitive intensity.
AI Productivity Impact
We see an AI productivity impact, a combination of these things. The compression is coming on some of the services.
Softer Volumes
This quarter the volumes were softer. Q4 revenues declined 1.3% sequentially due to seasonality and slower decision making in March.
Manufacturing Sector Weakness
Clients in Manufacturing remain cautious amid softer demand particularly in automotive and parts of Europe. Near term and FY27 growth will be impacted due to low revenue from one large client.
Geopolitical Tensions
With the situation with the Iran war, there was a change in the economic environment. Clients are talking about delays in decision making.
Regulatory Delays for Acquisitions
The acquisition of Optimum and a JV with an Australian client are pending regulatory approvals and not yet baked into guidance.
Discretionary Spending Constraints
Client spending is guarded, with greater focus on cost optimization engagements as against growth-led transformation programs.
AI Cannibalization of Traditional Services
AI is beginning to compress the traditional IT services model, typically in areas where AI foundation models and tools are very efficient.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing overall growth and full-year performance, especially in a seasonal business. QoQ comparison is relevant for understanding sequential momentum, immediate demand shifts, and the impact of seasonality on quarterly results.
FY26 Revenue Growth (Constant Currency)
We had growth of 3.1% for the full year in constant currency terms.
Q4 FY26 Revenue Growth (Constant Currency)
On Q4, our growth year-on-year was 4.1% in constant currency terms. Sequentially, revenues declined 1.3% in constant currency due to seasonality and slower decision making.
FY26 Large Deal TCV
Large deals were very good, $14.9 bn for the full year. The full year was 28% higher than it was in the previous year, with 55% net new.
Q4 FY26 Large Deal TCV
Large deals were $3.2 bn for the fourth quarter. We signed 19 large deals during the quarter.
FY27 Revenue Growth Guidance
Our revenue growth guidance for the financial year 2027 is 1.5% to 3.5% growth year-on-year in constant currency terms.
FY27 Operating Margin Guidance
Our operating margin guidance for financial year '27 is 20% to 22%.
H1 FY27 Seasonality
We expect H1 to be stronger than H2 consistent with our normal seasonality.
Acquisition Strategy
We have a very careful approach on acquisitions: strategic fit, cultural fit, value fit. We could see suddenly a lot, or three quarters of nothing.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| AI Services Revenue Contribution | Growing nicely, higher than 5.5% of Q3 revenue, but specific number not disclosed. | Disclosure of specific AI revenue numbers and its percentage contribution to total revenue. |
| Acquisition Closures | Optimum acquisition and Australian JV are pending regulatory approvals. | Announcements of closure for Optimum and the JV, and their subsequent impact on FY27 revenue guidance. |
| Wage Hikes | Decision on quantum and timing of wage hikes not yet made for FY27. | Announcement of wage hike details and management commentary on its impact on margins and employee morale. |
| Manufacturing Client Headwind | Revenue from one large client in manufacturing will wind down towards the end of FY27. | Evidence of successful backfilling of this revenue through new deals or growth in other segments to mitigate impact. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
Infosys aspires to be the leading partner to “unlock AI value” and deliver business outcomes on revenue growth, cost optimization, and innovation.
"Infosys aspires to be the leading partner to “unlock AI value”"
Infosys aspires to be the leading partner to “unlock AI value” and deliver business outcomes on revenue growth, cost optimization, and innovation.
"Infosys aspires to be the leading partner to “unlock AI value”"
Trend score and candlestick chart
51NeutralSMA20 +2.8% / mo · MACD −
Technical chart
INFYdaily · 1Y · AUTO-13.5%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 49.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 rising (~2.7% over last month) — short-term momentum positive.
- RSI(14) at 49 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 35% off 52W high · 15% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 5.4% below the 30-week proxy.
- The 50-DMA is below the 30-week proxy and its slope is falling -5.1%.
- Both 3-month and 6-month returns are negative.
Valuation & score drivers
U-Score 69 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 69 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 8.2%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 36.9%.
Main drags
- Valuation is weaker at 13/30; verify the latest quarterly trend.
- Growth is weaker at 12/25; verify the latest quarterly trend.
- Balance sheet is weaker at 10/15; verify the latest quarterly trend.
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Management has 80% delivered/partly-delivered outcomes on 20 checked claims, with 4 adverse claim outcomes. It ranks around the 78th percentile of the scored universe and 74th percentile within IT. No major sub-score weakness stands out.
High Trust: 20/37 extracted management claims have outcome checks; 50% were fully delivered and 6 were partially delivered. 4 claim(s) were contradicted or failed. Key concern: 4/20 matched management claims were contradicted or failed.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · IT: 74th pctile, median 69 · Large: 59th pctile, median 73
20 matched claims across 64 text-extracted concalls.
20/37 claims checked · 4 contradicted/failed claims
How to read this Trust Score
Healthy Trust · high confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is 8.2%.
- ▸11 years of positive FCF.
- ▸Debt/equity is 0.10.
Trust risks
- ▸4/20 matched management claims were contradicted or failed.
- ▸Promoter holding is only 13.8%.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 14.70
- P/B
- 5.02
- EV/EBITDA
- 9.59
- Market Cap
- 458580.00Cr
Profitability
- ROE
- 31.90%
- ROCE
- 40.00%
- ROA
- 19.65%
- Dividend Y
- 4.25%
Growth (CAGR)
- Revenue 5Y
- 12.00%
- EPS 5Y
- 9.00%
- Revenue 3Y
- 7.00%
- EPS 3Y
- 8.00%
Balance Sheet
- Debt/Equity
- 0.10
- Interest Coverage
- 101.73×
- Altman Z
- 7.66
- Book Value
- 225.00
Cash Flow
- FCF Yield
- 8.18%
- FCF Positive Y
- 11/5
- OCF
- 33986.00 Cr
- EPS TTM
- 74.25
Shareholding
- Promoter Hold
- 13.82%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 20%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.