The buyback will be conducted through the tender route at a price of ₹1,800 per share, which is a 19% premium to the current market price. The company will repurchase around 2.41% of its outstanding equity shares.
This marks Infosys’ fifth buyback and its largest to date, exceeding market expectations of a ₹10,000-14,000 crore buyback.
|
Year
|
Buyback Size (₹crore)
|
|
2017
|
13,000
|
|
2019
|
8,260
|
|
2021
|
9,200
|
|
2022
|
9,300
|
What brokerages say on Infosys buyback
Hong Kong-based brokerage firm CLSA has an ‘Outperform’ rating on Infosys, with a price target of ₹1,861. This target implies a further upside of 23% from Thursday’s closing price.
The brokerage believes that the buyback should lend support to the stock during a seasonally weak second half of FY26.
It added that Infosys is not seeing any major change in demand outlook, with management continuing to emphasise cost optimisation amid subdued discretionary spending.
On Generative AI, the company expects IT budgets to expand, with incremental volumes offsetting deflationary pressure.
Nomura has a ‘Buy’ recommendation with a target price of ₹1,880.
The brokerage pointed out Infosys’ largest-ever buyback and expects the company to post 3.8% year-on-year dollar revenue growth in FY26F (including 40 basis points from acquisitions, excluding the recently announced Versent deal).
It values Infosys at 20x FY27F EPS and sees an attractive dividend yield of 4.4% on FY27F estimates.
Morgan Stanley, meanwhile, has an ‘Equalweight’ rating with a price target of ₹1,700. It pointed out that the buyback size came in higher than expectations and, in absolute terms, is Infosys’ biggest ever.
While timelines will be released in due course, Morgan Stanley, based on historical experience, thinks it could take three to four months to fully execute.
It also views the announcement, coming amid macro uncertainty around tariffs and global demand, as a signal of confidence in the company’s FY26 guidance.
Of the 50 analysts that have coverage on Infosys, 35 of them have a ‘Buy’ rating, 13 have a ‘Hold’ rating, while two have a ‘Sell’ recommendation on the stock.
Shares of Infosys ended 1.33% lower on Thursday, at ₹1,512.20. The stock has declined 20% so far this year.
