Infosys Share Buyback Analyzed

Infosys’ stock jumped 4.19% to Rs 1533.70 after the company announced it’s planning a large share buyback. This means they want to buy some of their own stock back from investors. It’s a way for the company to return money to its shareholders.

Key Points

• Infosys plans to buy back 10 crore shares.
• The buyback will cost around Rs 18,000 crore.
• Average share price for the buyback: Rs 1,800.
• This is the fifth buyback in the last decade.
• Shareholder approval and regulatory clearances are needed.
• Expected revenue growth guidance raised to 2-3%.

The share buyback will involve purchasing up to 10 crore shares. This is a significant investment, valued at approximately Rs 18,000 crore. The average price for these shares will be Rs 1,800 per share, representing up to 2.41% of Infosys’ total equity.

It’s important to note that the company’s main owners (promoters) are not participating in this buyback. As of September 2025, they hold around 14.30% of the company’s shares. This suggests the company believes its stock is undervalued.

Infosys recently reported strong financial results for Q2 FY25. Their net profit increased by 6.4% to Rs 7,364 crore, and revenue rose by 5.2% to Rs 44,490 crore – both compared to the previous quarter. Year-on-year, profits grew 13.2% and revenues increased by 8.6%.

Looking ahead, Infosys has upgraded its revenue growth guidance for the financial year 2026. They now expect growth to be between 2% and 3%, measured in constant currency. Their operating margin forecast remains steady at 20%-22%.

“Strategic share buybacks demonstrate Infosys’ confidence in its long-term growth prospects.