Infosys slips 2% ahead of Q4 results; analysts expect muted guidance

Infosys share price: Shares of IT services giant Infosys fell over 2 per cent to hit an intraday low of ₹1,378.30 on Thursday, ahead of the company's March 2025 quarter earnings announcement due later in the day. The company's board of directors is expected to decide on the dividend payout and fix the record date along with the results. 

 

The Nifty IT index was down by over 2 per cent as investors are being cautious after Wipro, the country's fourth largest IT services company, gave a weak forecast for its IT services segment for the upcoming June 2024 quarter (Q1 FY26).

 

At 10:45 AM on Thursday, Infosys stock was quoting at ₹1,385, down 1.99 per cent compared to previous day's close of ₹1,413.10 on the National Stock Exchange (NSE). In comparison, the benchmark Nifty50 index was trading at 23,424.50, down 12.70 points or 0.05 per cent. On a year-to-date basis, the stock has plunged around 26 per cent compared to a 1.3 per cent decrease in the Nifty50 index. The company’s total market capitalisation stood at ₹5.75 trillion.

 

Overnight, American Depository Receipt (ADR) shares of Infosys fell over 2.6 per cent on the New York Stock Exchange (NYSE) after Wipro disappointed markets with its June quarter guidance.   ALSO READ | Wipro shares dip 6% on disappointing Q4 results; weak Q1 guidance

    

Infosys Q4 Results Preview

The Salil Parekh-led firm is expected to report a decline in its bottom line for the Q4 FY25, while reduced revenues from the third-party item sales for service delivery, along with seasonal demand softness is expected to impact the company's topline, according to analysts. 

 

Kotak Institutional Equities expects a 60 basis points decline in Ebit margin due to wage revision for employees. The brokerage firm believes that Infosys will guide for 1 to 4 per cent revenue growth for FY26 on account of deteriorating macro courtesy of tariff wars and unlike FY25, Infosys does not have mega-deals contributing to FY26.  

ALSO READ | Infosys Q4 Preview: Profit likely to dip 1.5% as margins set to contract

 

"We expect investor focus on slowdown in spending due to tariff wars and a deteriorating macro, program cancellations (if any), strength of deal pipeline, especially noting muted large deal wins over the past three quarters, pricing pressure from client demand of AI-driven efficiency, margin levers in FY2026 and assumptions underlying guidance and whether guidance is back-ended or front-loaded," said. 

 

Infosys Q3 flashback

In Q3 FY25, the company had reported an 11.4 per cent year-on-year (Y-o-Y) increase in its net profit to ₹6,806 crore compared to ₹6,106 crore in the same quarter of previous fiscal. Revenue increased by 7.6 per cent Y-o-Y to ₹41,764 crore in Q3 FY25 from ₹38,821 crore in Q3 FY24. The company's total operating expenses rose 3.5 per cent to ₹3,732 crore in Q3 FY25, compared to ₹3,607 crore in the year-ago quarter.

  ALSO READ | Infosys Q4 Preview: Profit likely to dip 1.5% as margins set to contract