INFY
Large CapInfosys Limited
IT
Infosys provides AI-first business consulting and technology services to global enterprises. Its current growth agenda combines AI services, cloud and legacy modernization, large-deal execution, and cost-optimization work for clients.
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 argues for patience, 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 31 Mar 2026
Average · 47/100margin compression · Rev +13% YoY · PAT +21% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹46,402 Cr | +13.4% | +2.0% |
| EBITDA | ₹11,167 Cr | +13.1% | +5.0% |
| Operating margin | 24.0% | +0 bps | +100 bps |
| PAT | ₹8,509 Cr | +20.9% | +27.6% |
| PAT margin | 18.3% | +114 bps | +368 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 showed stronger reported delivery, while FY27 guidance remains measured because client budgets and competitive intensity are still cautious.
The thesis remains intact, but this is an execution year rather than a broad demand-cycle recovery. Q4 revenue was ₹46,402 Cr, up 13.4% YoY, and net profit was ₹8,501 Cr, up 20.9% YoY. The next proof points are conversion of the large-deal pipeline, AI-services monetization, and defence of the 20%–22% margin band.
AI services across six areas
Strategic engineManagement identified AI strategy and engineering, data, process, legacy modernization, physical AI and trust as addressable service areas, supported by Topaz Fabric and Cobalt.
Large-deal conversion
Execution checkpointFY26 large deals were close to $15 bn with 55% net new. Q4 included 19 large deals with $3.2 bn TCV.
Financial Services and EURS acceleration
Management outlookManagement expects growth acceleration in Financial Services and Energy, Utilities, Resources and Services from FY26 to FY27.
AI-led modernization demand
Structural tailwindManagement described demand across AI strategy, engineering, data, process, legacy modernization, physical AI and trust-related work.
Selective enterprise spending
Demand headwindManagement described enterprise budgets as measured and selective amid macro uncertainty and high competitive intensity.
European manufacturing-client ramp-down
Known headwindFY27 guidance includes a 0.75%–1% reduction from lower revenue at one large European manufacturing client.
Measured client spending
Demand riskManagement described enterprise budgets as measured and selective amid macro uncertainty, higher interest rates, rapid technology shifts and high competitive intensity.
European manufacturing-client ramp-down
Known headwindFY27 guidance includes a 0.75%–1% reduction from lower revenue at one large European manufacturing client after Infosys declined deals that did not meet return expectations.
Margin reinvestment and acquisition drag
Margin riskThe 20%–22% FY27 margin band assumes wage hikes, productivity pass-throughs and AI investment. Management also indicated approximately 0.7% annualized post-close acquisition impact.
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.
Use YoY to judge the annual demand trajectory and QoQ to test sequential execution, margin discipline, and whether large-deal conversion is improving.
Constant-currency revenue growth
Demand trajectoryFY27 constant-currency revenue growth guidance is 1.5%–3.5% YoY.
Operating margin
Execution disciplineFY27 operating-margin guidance is 20%–22%; Q4 FY26 operating margin was 21.0%.
Large-deal TCV
Forward visibilityFY26 large deals were close to $15 bn with 55% net new. Q4 included 19 large deals with $3.2 bn TCV.
FY27 revenue guidance
Track next resultsConstant-currency revenue growth guidance is 1.5%–3.5% YoY, with H1 expected to be stronger than H2.
FY27 operating-margin guidance
Track quarterlyOperating-margin guidance is 20%–22%.
FY27 effective tax rate
Normalize earningsManagement expects an effective tax rate of 29%–30% after a lower Q4 tax rate driven by reversal of prior-year tax provisions.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Constant-currency revenue growth | FY27 guidance: 1.5%–3.5% | Track whether quarterly performance supports the lower end of the FY27 band. |
| Operating margin | Q4 FY26: 21.0% | Flag sustained delivery below the 20% FY27 guidance floor. |
| Large-deal conversion | FY26: ~$15 bn; 55% net new | Track whether deal wins offset the European manufacturing-client ramp-down. |
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”"
Trend score and candlestick chart
43NeutralSMA20 -9.0% / mo · near 52W low
Technical chart
INFYweekly · 6M-26.1%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 41.
- SMA20 falling (~9.8% over last month) — short-term momentum negative.
- RSI(14) at 41 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 32% off 52W high · 8% 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.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 7.8%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 46.3%.
Main drags
- Growth is weaker at 12/25; verify the latest quarterly trend.
- Valuation is weaker at 17/30; verify the latest quarterly trend.
- Balance sheet is weaker at 11/15; 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: +0 points.
Factor attribution
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 79th percentile of the scored universe and 72nd 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: 72nd pctile, median 68 · Large: 58th pctile, median 74
20 matched claims across 72 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 7.8%.
- ▸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 14.4%.
Intrinsic value
Fundamentals
Valuation
- P/E
- 16.00
- P/B
- 5.19
- EV/EBITDA
- 10.41
- Market Cap
- 481840.00Cr
Profitability
- ROE
- 31.90%
- ROCE
- 40.00%
- ROA
- 19.10%
- Dividend Y
- 4.04%
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
- 101.63×
- Altman Z
- 7.82
- Book Value
- 229.00
Cash Flow
- FCF Yield
- 7.79%
- FCF Positive Y
- 11/5
- OCF
- 33986.00 Cr
- EPS TTM
- 72.59
Shareholding
- Promoter Hold
- 14.38%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 15%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%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.