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Infosys shares slip after it narrows FY27 revenue outlook
Infosys narrowed FY27 constant currency revenue growth to 1.5% to 3.0%, while keeping its operating margin guidance at 20% to 22% for the year.
Infosys shares fell 2.5% to a BSE intraday low of ₹ 1,023.30 after the company revised its FY27 revenue guidance alongside its June-quarter earnings. The decline came even as Infosys reported a 12.3% year-on-year increase in consolidated net profit to ₹ 7,769 crore for the April-June quarter.
The IT services firm said revenue from operations rose to ₹ 48,211 crore, up 14% year-on-year and 3.9% quarter-on-quarter. In constant currency terms, revenue growth was 2.4% year-on-year and 1.0% quarter-on-quarter.
Infosys narrowed its FY27 constant currency revenue growth outlook to 1.5% to 3.0%, down from the earlier 1.5% to 3.5% range, but retained its operating margin guidance of 20% to 22% for the year. The company also reported total contract value of $3.6 billion for the June quarter, up from $3.2 billion in the prior quarter.
Separately, Infosys appointed Ashiss Kumar Dash as CEO-designate, with him set to assume the CEO and managing director role from April 1, 2027, for a five-year term, according to LiveMint Markets. Brokerage firm Motilal Oswal maintained a buy call with a target price of ₹ 1,170, while noting it trimmed FY27 and FY28 estimates to factor in the lower growth outlook and pricing pressure.