Infosys shares declined sharply on Monday, emerging among the leading Nifty losers after the IT services company reported weaker-than-expected second-quarter earnings and reduced its FY27 revenue growth forecast.
The stock fell as much as 4% during early trading before recovering partially to ₹1,140 on the NSE, down approximately 1%.
Infosys shares have declined 30% so far this year, compared with a 13.5% fall in the Nifty 50. The company's market capitalisation stood at approximately ₹4.6 lakh crore.
Revenue Guidance Lowered
Infosys reported a 6.2% year-on-year increase in consolidated net profit to ₹7,823 crore for the September quarter.
Revenue grew 10.7% to ₹49,244 crore, while operating profit increased 10.4% to ₹10,330 crore, although it fell short of market expectations.
The company's operating margin declined by 10 basis points sequentially to 21%.
Infosys reduced its FY27 constant-currency revenue growth guidance to 1-2% from the earlier projection of 1.5-3%.
However, it retained its operating margin guidance of 20-22%.
The downward revision raised concerns about demand conditions and near-term profitability.
Net-new business accounted for 62% of the total deal value of the company. Artificial intelligence (AI) services revenue increased 29% sequentially, raising its contribution to overall revenue to 10.5% from 8.2% in the June quarter.
Broader market sentiment remained subdued, with the Nifty IT index declining 0.16%. However, the company's reduced growth forecast and profitability concerns overshadowed its strong deal pipeline and expanding AI business.
