Infosys Q4 Results Review — Top-Line Miss; Cautious Guidance Due To Macro Uncertainty: Dolat Capital

For FY26 Infosys has provided revenue guidance of 0%-3% in CC terms and OPM band of 20-22%. This guidance accounts for macro uncertainties (tariff-led), while discussions with clients indicate no signs of project delays/ramp-downs & deal pipeline remains healthy..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..Dolat Capital Report.Infosys Ltd. reported revenue decline of 3.5% QoQ in constant currency (our estimate of -1.2%) due to reduced third-party sales (~2.3% impact), and lower than expected working days. Operating profit margin dipped by 39 basis points QoQ to 21%, due to net impact of wage hikes (Jr staff), amortization charge (past merger and acquisition), though this decline was partially offset by forex benefit, lower than expected customer support costs and operational efficiencies. For FY26 the company has provided revenue guidance of 0%-3% in CC terms and OPM band of 20-22%. This guidance accounts for macro uncertainties (tariff-led), while discussions with clients indicate no signs of project delays/ramp-downs & deal pipeline remains healthy. Noting weak FY26 guidance, we lower our FY26/FY27E earnings estimate by 3%/5%. While Infosys remains cautious on tightening client budgets, it has not yet seen any deal ramp-downs/delays. The sharp correction in stock over past three months have eased valuation towards favorable risk-reward scenario, and hence we revise our rating to ‘Accumulate’ with target price of Rs 1,660, valued at 27 times of FY27E earnings.Click on the attachment to read the full report:.Q4 Results: Tata Elxsi Profit Down 14%; Infosys ADR Slips After Weak Guidance .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 Q4 Results Review — Top-Line Miss; Cautious Guidance Due To Macro Uncertainty: Dolat Capital

Recent correction have eased valuation towards favorable risk-reward scenario, hence Dolat Capital revises Infosys' rating to ‘Accumulate’.

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