This marks Infosys’ second share buyback since 2022 and the largest in its history. The board had approved the proposal on September 11.
The buyback entails repurchasing 10 crore shares at Rs 1,800 per share, representing 2.41% of the company’s paid-up capital.
The announcement was made after market hours, and Infosys shares closed marginally lower at Rs 1,466.50. Since the buyback announcement on September 11, when shares closed at Rs 1,512.20, Infosys stock has declined nearly 3%.
Over the past 12 months, Infosys shares have fallen 16%, significantly underperforming both the broader benchmarks and the IT sector. During the same period, the Nifty IT index fell 12%, while broader indices such as the Nifty and Sensex delivered returns of nearly 5%.
Despite the stock’s underperformance, Infosys reported solid financial results for the second quarter of FY26.Net profit rose 13% year-on-year to Rs 7,364 crore, while revenue from operations grew 9% to Rs 44,490 crore. The company revised the lower end of its FY26 revenue guidance upward to 2-3%, from the earlier projection of 1-3%. Margin guidance for the year remained unchanged at 20–22%.In constant currency terms, revenue rose 2.9% YoY and 2.2% quarter-on-quarter in the September quarter. However, operating margins declined 10 basis points YoY to 21%. Gross profit for the quarter increased 9% YoY to Rs 13,690 crore. Infosys also reported deal wins worth $3.1 billion in Q2, with 67% of them being net new.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)