India’s second-largest IT services exporter also posted an 8% YoY rise in revenue from operations to Rs 42,279 crore for the quarter ended June. In constant currency (CC) terms, revenue grew 3.8% YoY and 2.6% sequentially.
The Bengaluru-headquartered firm bagged deals worth $3.8 billion during the quarter, 55% of which were net new.
Gross profit rose to Rs 13,055 crore, up from Rs 12,138 crore in the same quarter last year, reflecting operational efficiency and growth momentum. However, the operating margin for Q1 stood at 20.8%, marking a decline of 30 basis points YoY and 20 basis points QoQ.
Despite the dip, the company has maintained its margin guidance between 20–22% for the rest of FY26.
Infosys also revised its full-year revenue growth guidance, raising the lower end to 1% while keeping the upper end unchanged at 3% in constant currency terms—signaling cautious optimism amid global macroeconomic uncertainties.Post the company’s Q1 results, here is what brokerages said about the stock:
Nomura: Buy | Target price: Rs 1,880 (earlier Rs 1,900)
Nomura has maintained its ‘buy’ rating on Infosys while slightly trimming the target price to Rs 1,880 from Rs 1,900.
The brokerage has lowered its FY26 organic growth forecast by 40 basis points but expects reduced third-party costs to support margins, offsetting ramp-up expenses from large deal wins. Nomura projects Infosys’ FY26 EBIT margin at 21.1%, within the company’s guided range of 20–22%.
It also estimates FY26 USD revenue growth at 3.8% YoY, including about 40 basis points from acquisitions. Despite the slight revision in estimates, Infosys remains Nomura’s top large-cap IT pick.
Motilal Oswal: Neutral | Target price: Rs 1,750 (earlier Rs 1,800)
Motilal Oswal Financial Services has retained a ‘neutral’ stance on Infosys while lowering its target price to Rs 1,750 from Rs 1,800.
The brokerage noted a strong start to the fiscal year, but said the overall outlook remains unchanged. Infosys has revised its FY26 constant currency revenue growth guidance to 1–3%, up from 0–3%.
The company reported robust deal wins, with total contract value (TCV) rising 46% QoQ to $3.8 billion, and net new TCV up 50% QoQ. However, management remains cautious on discretionary spending, with no meaningful pickup in client demand yet.
Progress in enterprise AI is viewed positively, but Motilal believes near-term catalysts are limited. For Q2FY26, it expects Infosys to report a 7.1% rise in revenue, 9.7% EBIT growth, and 11.0% YoY increase in PAT.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
