Infosys Q4 Results Review — Macro Overhang Limits Growth Visibility; Margins Intact: Nirmal Bang Maintains Buy

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Nirmal Bang Report

Infosys Ltd. remains well positioned to benefit from a cyclical recovery in tech spends, though the macro overhang limits the near-term growth visibility. Sustained large deal wins, AI-first transformation tailwinds, and disciplined capital allocation further enhance long-term visibility.

The current market price already factors in the muted FY26 revenue guidance (0-3% constant currency), and provides a favorable risk-reward given its historical execution strength and improving free cash flows.

To factor in Q4 slippages in third party revenue deal and the soft guidance, we trim our EPS estimates by 2.4% and 0.9% for FY26 and FY27, respectively. We maintain our Buy rating and Mar-27E target price of Rs 1,709 on 22x P/E.

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