Infosys Q1 Results: Shares of Infosys, India’s second-largest IT services company by market capitalisation, declined 2.5% to its day’s low of ₹1,023.30 per share on BSE, after the company reduced its guidance for FY27 and announced a new CEO in the June-quarter earnings.
On Thursday, the IT major reported a 12.3% year-on-year (YoY) increase in consolidated net profit to ₹7,769 crore for the April-June quarter of FY27, compared with ₹6,921 crore in the corresponding quarter last year. On a sequential basis, however, net profit declined 8.6% from ₹8,501 crore reported in the March quarter (Q4FY26).
The IT major posted revenue from operations of ₹48,211 crore during the June quarter, registering a 14% YoY and 3.9% quarter-on-quarter (QoQ) growth. Revenue stood at ₹42,279 crore in Q1FY26 and ₹46,402 crore in Q4FY26. In constant currency (CC) terms, revenue increased 2.4% YoY and 1% QoQ.
Infosys also revised its FY27 revenue outlook, narrowing its constant currency revenue growth guidance to 1.5%-3%, compared with the earlier 1.5%-3.5% range announced while reporting its Q4FY26 results. However, the company retained its operating margin guidance of 20%-22% for the current financial year.
CEO succession plan announced
Alongside its quarterly earnings, Infosys announced the appointment of Ashiss Kumar Dash as the company’s CEO-designate. Dash will assume the role of Chief Executive Officer and Managing Director from April 1, 2027, for a five-year term.
Commenting on the appointment, Nandan Nilekani, Chairman of the Board, Infosys, said, “The board is delighted to appoint Dash as CEO designate. Our industry is entering a period of considerable change. The board was clear that our next CEO needed to combine the ability to drive bold transformation with the judgment to preserve the values and customer trust that have always distinguished Infosys. It gives me great pleasure that we have an internal leader as our next CEO.”
Meanwhile, Infosys’ large deal total contract value (TCV) for the June quarter stood at $3.6 billion, up from $3.2 billion in the preceding quarter.
Should you buy?
Brokerage house Motilal Oswal has a buy call with a target price of ₹1,170, indicating an upside potential of 12%.
“We trim our FY27E/FY28E EPS estimates by ~2% to factor in lower FY27 organic growth guidance and continued pricing pressure from AI-led productivity deflation. While AI revenue continues to scale up rapidly, we believe productivity pass-through on the existing book of business will remain a near-term headwind. Execution on deal conversion and pricing remains a key monitorable,” it said post the earnings.
Meanwhile, Elara Securities downgraded the stock to ‘accumulate’ from ‘buy, and lowered its target price to ₹1,150 (from INR 1,530). Infosys’ (INFO IN) Q1 revenues as well as margins were lower than expectations. Revenue growth for the quarter was 1% QoQ CC and included inorganic contribution of ~1-1.1%, suggesting flat QoQ organic growth. Q1 revenue growth was impacted by an unexpected program termination by a client, higher-than-expected productivity by clients and some unplanned offshoring, noted the brokerage.
“The steep cut in organic growth guidance (per our calculation, organic growth guidance has been reduced to -0.4 to 1.6% now from 1.3%-3.3% earlier, adjusting for 20bps from Stratus) is concerning along with contract termination by a client. INFO is also not getting better pricing (envisaged at the start of FY27) due to intensifying competition. The company acknowledged AI deflation impacting its revenue growth without specifying any number. AI revenues grew 22% CQGR in last 2 quarters but traditional revenues declined 1.6%. We cut USD revenue growth estimates for FY27E/28E by 3-4% and now build in 1.5%/2% USD revenue growth (earlier 4%/3.5%). We cut earnings by 4-6%. We also cut multiple to 15x (from 19x earlier, multiple now similar to TCS due to similar growth as well earnings profile now),” it highlighted.
Infosys share performance
The stock has been on a negative trend in recent times. It lost 6% in 1 week, 2.5% in 1 month, 11% in 3 months, 38% in 6 months and 33% in 1 year. It had hit its 52-week high of ₹1,727.85 in February 2026 and its 52-week low of ₹984 earlier this month on 1 July, 2026.
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