Infosys Q2 Review — Macro Risks Keep Outlook Guarded, Says Systematix Maintaining 'Hold'

Infosys' demand environment remained steady but still marked by macroeconomic volatility, elongated deal cycles, and cautious client spending—especially in discretionary areas. Most client spending was directed toward cost optimization and vendor consolidation rather than new transformation initiatives..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Report.For Q2, Infosys Ltd. reported a growth of 2.2% QoQ in CC, 2.7% in USD and 5.2% in INR terms. All markets in North America, Europe, Rest of World (RoW), and India reported QoQ growth, with all verticals except retail strong during the quarter. Infosys recorded large deal value (TCV – total contract value) of $3.1 billion in Q2 (down 18% QoQ), comprising 23 deals, of which, 67% were net new. Management has increased the lower end of its revenue growth guidance to 2%-3% in CC for FY26..During Q2, Ebit margin grew 20bps to 21% on-a 70bps headwind from sequentially higher post-sales customer support costs, largely offset bya 60bps tailwind from favorable currency movement, and a 30bps benefit from Project Maximus, led by increased value-based selling and lean-in automation, partly offset by higher subcontractor expenses and lower onsite utilization. Management maintained its margin guidance at 20%-22% for FY26..Valuation & Outlook At 21.4x 1-year forward multiple, Infosys trades at 1% premium to its last 10-year average multiple. We have maintained our target multiple at 22x FY27E EPS to arrive at a target price of Rs 1,649 per share (Rs 1,644 earlier). We reiterate Hold, as the stock does not offer much upside from CMP. Key upside risks to our assumptions: Higher-thanexpected margin expansion and earnings growth..Click on the attachment to read the full report: .Infosys Q2 Review — Strong Deal Flow Underpins Guidance Upgrade, Says Dolat Capital Maintaining 'Add'.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Infosys Q2 Review — Macro Risks Keep Outlook Guarded, Says Systematix Maintaining 'Hold'

Systematix reiterates Hold on Infosys, as the stock does not offer much upside from current market price.

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