Infosys Ltd
Infosys Ltd
Information Technology F&OKey Fundamentals
LargecapComputer Software & ConsultingInformation TechnologyInsights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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49 extracted metrics + investor summaries across FY15–FY26.
Tapetide Score
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Technical Indicators
Key Insights
Strengths
4- Stock is providing a good dividend yield of 4.21%.
- Company has a good return on equity (ROE) track record: 3 Years ROE 30.8%
- Company has been maintaining a healthy dividend payout of 68.5%
- Company's working capital requirements have reduced from 42.0 days to 32.7 days
Weaknesses
2- Promoter holding has decreased over last quarter: -0.56%
- Promoter holding is low: 13.8%
Growth Rate
AI Analysis — Bull vs Bear
Infosys Ltd is a large-cap IT services company with a market cap of ₹4.75 lakh crore, trading at a PE of 15.7x with a consistent ROE of 31-32% over recent years. Revenue has compounded at 11% TTM while profit grew 14% TTM, though the stock has declined 19% over the past year despite steady operational performance.
- Strong dividend yield of 4.09% with a healthy payout ratio of 68.5%, providing meaningful income to shareholders
- Consistent return on equity at 32% last year and averaging 31% over 3 and 5 years, indicating efficient capital allocation
- TTM profit growth of 14% outpacing sales growth of 11%, suggesting margin expansion
- PE ratio of 15.7x is below historical averages for large-cap Indian IT, after the stock corrected 19% in the past year
- Compounded sales growth of 11% over 10 years demonstrates long-term revenue consistency and business durability
- Working capital days reduced from 42.0 to 32.7 days, reflecting improved cash conversion efficiency
- 10-year stock CAGR of 9% despite recent correction shows the company has delivered long-term wealth creation
- Stock has declined 19% over 1 year and delivered negative 6% CAGR over 3 years, signaling sustained market de-rating
- Promoter holding is low at 13.8% and fell further by 0.56% in the last quarter, raising governance perception concerns
- 5-year stock CAGR is negative 8%, meaning shareholders who invested 5 years ago have lost value
- Compounded sales growth has decelerated from 12% (5-year) to 7% (3-year), indicating a slowdown in revenue momentum
- Compounded profit growth of 8% over 3 and 5 years trails TTM growth of 14%, raising questions about sustainability of recent acceleration
- Price-to-book ratio of 5.5x is elevated for a services business, implying limited margin of safety if growth disappoints
- 3-year profit CAGR of 8% only marginally exceeds 3-year sales CAGR of 7%, suggesting limited structural margin improvement over medium term
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- France labor law fine Jul 25
Infosys penalized €175,000 by French authorities for non-compliance with working time recording systems. Company states no material financial impact on operations.
- Strong Q1FY27 revenue growth Jul 23
Infosys reported Q1FY27 revenue of ₹48,211 crore, up 14% YoY, with net profit rising 12.2% to ₹7,769 crore.
- Metsä Group AI partnership expanded Aug 5
Infosys deepens ties with Metsä Group to transform IT operations using Topaz Fabric, covering cloud, apps, and workplace services across global sites.
- Finacle wealth solution for HDFC Aug 4
Infosys Finacle deployed Wealth Management Solution for HDFC Bank, consolidating domestic and offshore operations across 12 asset classes with over 350 APIs.
- Investec digital banking deal won Jul 30
Investec selects Infosys Finacle SaaS platform on Microsoft Azure to modernize banking operations across South Africa, UK, and other regions, replacing legacy systems.
- Foundation supports PGIMER centre Jul 22
Infosys Foundation committed over INR 147 crore for critical medical equipment at PGIMER's Advanced Mother and Child Centre, inaugurated by PM Modi.
- Multiple institutional block trades Jul 24
Several large block trades executed between Jul 23-30 totaling over ₹632 crore across NSE and BSE, indicating significant institutional activity in Infosys shares at prices ranging from ₹1,021.70 to ₹1,170.30 per share.
- 20,000 fresher hiring planned Jul 23
Infosys plans to hire 20,000 fresh graduates this year with over 4,000 already onboarded in Q1. Financial services and energy sectors expected to grow above company average.
- No data centre sector entry Jul 23
Infosys co-executive announced the company will not enter the data centre sector at this time, reflecting a deliberate strategic choice.
- Clean Q1FY27 audit by Deloitte Jul 23
Deloitte Haskins & Sells LLP issued a clean audit opinion on Infosys Q1FY27 standalone and consolidated financial results for quarter ended June 30, 2026.
- NTN e-commerce SAP migration Jul 28
Infosys migrated NTN Corporation's on-premise e-commerce platform to SAP Commerce Cloud 2211 using Infosys Cobalt, improving system reliability in Japan.
- BPM Colombia subsidiary setup Jul 21
Infosys BPM incorporated a wholly-owned subsidiary in Colombia named Infosys BPM Colombia S.A.S. to expand its global footprint.
TL;DR: Infosys delivered a solid Q1FY27 with 14% YoY revenue growth and 12.2% profit growth, supported by new AI and digital banking deal wins with Metsä Group, HDFC Bank, and Investec. The only headwind is a minor €175k fine in France with no material impact. Heavy institutional block trade activity suggests active portfolio rebalancing rather than directional concern. The trend is positive with deal momentum in financial services and AI partnerships pointing to sustained growth.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 37,933 | 38,994 | 38,821 | 37,923 | 39,315 | 40,986 | 41,764 | 40,925 | 42,279 | 44,490 | 45,479 | 46,402 | 48,211 |
| Expenses | 28,869 | 29,554 | 29,684 | 29,139 | 29,878 | 31,177 | 31,649 | 31,051 | 32,336 | 33,955 | 34,845 | 35,235 | 36,802 |
| Operating Profit | 9,064 | 9,440 | 9,137 | 8,784 | 9,437 | 9,809 | 10,115 | 9,874 | 9,943 | 10,535 | 10,634 | 11,167 | 11,409 |
| OPM % | 24% | 24% | 24% | 23% | 24% | 24% | 24% | 24% | 24% | 24% | 23% | 24% | 24% |
| Other Income | 561 | 632 | 789 | 2,729 | 838 | 712 | 859 | 1,190 | 1,042 | 982 | -150 | 1,159 | 984 |
| Interest | 90 | 138 | 131 | 110 | 105 | 108 | 101 | 102 | 105 | 106 | 100 | 105 | 119 |
| Depreciation | 1,173 | 1,166 | 1,176 | 1,163 | 1,149 | 1,160 | 1,203 | 1,299 | 1,140 | 1,182 | 1,155 | 1,424 | 1,246 |
| PBT | 8,362 | 8,768 | 8,619 | 10,240 | 9,021 | 9,253 | 9,670 | 9,663 | 9,740 | 10,229 | 9,229 | 10,797 | 11,028 |
| Tax % | 29% | 29% | 29% | 22% | 29% | 30% | 29% | 27% | 29% | 28% | 28% | 21% | 30% |
| Net Profit | 5,945 | 6,215 | 6,113 | 7,975 | 6,374 | 6,516 | 6,822 | 7,038 | 6,924 | 7,375 | 6,666 | 8,509 | 7,775 |
| EPS in Rs | 14.32 | 14.97 | 14.71 | 19.2 | 15.34 | 15.67 | 16.39 | 16.93 | 16.66 | 17.73 | 16.41 | 20.96 | 19.15 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 53,319 | 62,441 | 68,484 | 70,522 | 82,675 | 90,791 | 1,00,472 | 1,21,641 | 1,46,767 | 1,53,670 | 1,62,990 | 1,78,650 | 1,84,582 |
| Expenses | 38,436 | 45,362 | 49,880 | 51,700 | 62,505 | 68,524 | 72,583 | 90,150 | 1,11,637 | 1,17,245 | 1,23,754 | 1,36,370 | 1,40,837 |
| Operating Profit | 14,883 | 17,079 | 18,604 | 18,822 | 20,170 | 22,267 | 27,889 | 31,491 | 35,130 | 36,425 | 39,236 | 42,280 | 43,745 |
| OPM % | 28% | 27% | 27% | 27% | 24% | 25% | 28% | 26% | 24% | 24% | 24% | 24% | 24% |
| Other Income | 3,430 | 3,120 | 3,050 | 3,311 | 2,882 | 2,803 | 2,201 | 2,295 | 2,701 | 4,711 | 3,600 | 3,033 | 2,975 |
| Interest | 12 | 0 | 0 | 0 | 0 | 170 | 195 | 200 | 284 | 470 | 416 | 416 | 430 |
| Depreciation | 1,017 | 1,459 | 1,703 | 1,863 | 2,011 | 2,893 | 3,267 | 3,476 | 4,225 | 4,678 | 4,812 | 4,902 | 5,007 |
| PBT | 17,284 | 18,740 | 19,951 | 20,270 | 21,041 | 22,007 | 26,628 | 30,110 | 33,322 | 35,988 | 37,608 | 39,995 | 41,283 |
| Tax % | 28% | 28% | 28% | 21% | 27% | 24% | 27% | 26% | 28% | 27% | 29% | 26% | — |
| Net Profit | 12,372 | 13,489 | 14,353 | 16,029 | 15,410 | 16,639 | 19,423 | 22,146 | 24,108 | 26,248 | 26,750 | 29,474 | 30,325 |
| EPS in Rs | 26.93 | 29.36 | 31.24 | 36.69 | 35.26 | 38.96 | 45.42 | 52.56 | 58.08 | 63.2 | 64.32 | 72.59 | 74.25 |
| Div. Payout % | 55% | 41% | 41% | 59% | 60% | 45% | 59% | 59% | 58% | 73% | 67% | 66% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 572 | 1,144 | 1,144 | 1,088 | 2,170 | 2,122 | 2,124 | 2,098 | 2,069 | 2,071 | 2,073 | 2,024 |
| Reserves | 50,164 | 60,600 | 67,838 | 63,835 | 62,778 | 63,328 | 74,227 | 73,252 | 73,338 | 86,045 | 93,745 | 90,828 |
| Borrowings | 0 | 0 | 0 | 0 | 0 | 4,633 | 5,325 | 5,474 | 8,299 | 8,359 | 8,227 | 9,176 |
| Other Liabilities | 15,553 | 13,354 | 14,166 | 14,426 | 19,118 | 21,717 | 25,835 | 35,905 | 40,890 | 39,545 | 43,750 | 52,260 |
| Total Liabilities | 66,289 | 75,098 | 83,148 | 79,349 | 84,066 | 91,800 | 1,07,511 | 1,16,729 | 1,24,596 | 1,36,020 | 1,47,795 | 1,54,288 |
| Fixed Assets | 11,346 | 13,386 | 14,179 | 12,574 | 15,710 | 23,789 | 25,505 | 25,800 | 29,225 | 27,622 | 30,961 | 33,770 |
| CWIP | 776 | 960 | 1,365 | 1,606 | 1,388 | 954 | 922 | 416 | 288 | 293 | 814 | 526 |
| Investments | 2,270 | 1,892 | 16,423 | 12,163 | 11,261 | 8,792 | 14,205 | 20,324 | 19,478 | 24,623 | 23,541 | 21,880 |
| Other Assets | 51,897 | 58,860 | 51,181 | 53,006 | 55,707 | 58,265 | 66,879 | 70,189 | 75,605 | 83,482 | 92,479 | 98,112 |
| Total Assets | 66,289 | 75,098 | 83,148 | 79,349 | 84,066 | 91,800 | 1,07,511 | 1,16,729 | 1,24,596 | 1,36,020 | 1,47,795 | 1,54,288 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 8,353 | 10,028 | 11,531 | 13,218 | 14,841 | 17,003 | 23,224 | 23,885 | 22,467 | 25,210 | 35,694 | 33,986 |
| Investing | 999 | -885 | -14,664 | 4,533 | -632 | -331 | -7,373 | -6,485 | -1,071 | -5,093 | -1,864 | 3,546 |
| Financing | -4,935 | -6,813 | -6,939 | -20,505 | -14,512 | -17,591 | -9,786 | -24,642 | -26,695 | -17,504 | -24,161 | -39,786 |
| Net Cash Flow | 4,417 | 2,330 | -10,072 | -2,754 | -303 | -919 | 6,065 | -7,242 | -5,299 | 2,613 | 9,669 | -2,254 |
| Free Cash Flow | 6,106 | 7,305 | 8,771 | 11,220 | 12,396 | 13,696 | 21,117 | 21,724 | 19,888 | 23,009 | 33,457 | 31,259 |
| CFO/OP | 101 | 93 | 92 | 107 | 107 | 97 | 106 | 100 | 89 | 95 | 105 | 101 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 66 | 66 | 66 | 68 | 65 | 74 | 70 | 68 | 63 | 72 | 70 | 72 |
| Cash Conversion Cycle | 66 | 66 | 66 | 68 | 65 | 74 | 70 | 68 | 63 | 72 | 70 | 72 |
| Working Capital Days | 3 | 34 | 38 | 50 | 36 | 42 | 36 | 28 | 31 | 54 | 39 | 33 |
| ROCE % | 36% | 33% | 30% | 30% | 32% | 32% | 35% | 37% | 40% | 40% | 38% | 40% |
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Company Information
Infosys Ltd provides consulting, technology, outsourcing and next-generation digital services to enable clients to execute strategies for their digital transformation.[1] It is the 2nd largest Information Technology company in India behind TCS.[2]