Infosys' revenue grew 2.2%/2.9% CC QoQ/YoY, including a 20bps contribution from acquisitions (one month incremental from MRE and Missing Link). Revenue growth was largely led by realisation gains amid soft volume growth. Realisation gains were driven by higher calendar working days and effective pricing increase in project Maximus.
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ICICI Securities Report
Infosys Ltd. reported a strong beat on revenue in Q2 FY26 led by healthy broad-based growth in key verticals and markets. However, FY26 revenue growth guidance revision to 2-3% YoY vs 1-3% earlier implies -1.5% to -0.2% CQGR in H2 FY26 vs -0.9% in H2 FY25 i.e., no improvement over last year at mid-point.
Mega deal win (100% net new) announcement of TCV $1.6 billion spread over 15-year provides some growth visibility, although management remains measured in its outlook given the macro uncertainty and elongated decision cycles in certain verticals.
Headcount addition of 8,000 employees marked a change in trend of muted addition in past several quarters, but headcount growth (4.5% YoY) was in line with LTM revenue growth (4.4% YoY CC).
Our EPS estimates remain largely unchanged. Maintain Hold with target price of Rs 1,520, based on 1-year forward unchanged P/E of 21x on Sep'27E EPS of Rs 72.
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