Infosys Limited (INFY) AI Stock Analysis

• Market Cap: ₹6.13T
• Dividend Yield: 2.95%
• Average Volume (3M): 369.61K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.93
• Revenue Growth: 7.03%
• EPS Growth: 2.21%
• Country: IN
• Employees: 300,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 16.42
• Shares Outstanding: 4,154,401,400
• 10 Day Avg. Volume: 400,891
• 30 Day Avg. Volume: 369,612
• PEG Ratio: 0.00
• Price to Book (P/B): 6.62
• Price to Sales (P/S): 3.85
• P/FCF Ratio: 18.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,680.07
• Price Target Upside: 13.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 75 Outperform
• Price Target: ₹1,688.00 ▲(14.43% Upside)

Infosys Limited's strong financial performance and robust deal wins are significant positives. However, mixed technical indicators, high valuation, and cautious earnings guidance temper the overall outlook.

Infosys Limited Business Overview & Revenue Model

Company Description

Infosys Limited, together with its subsidiaries, provides consulting, technology, outsourcing, and next-generation digital services in North America, Europe, India, and internationally. It provides application development and management, independent validation, product engineering and management, infrastructure management, enterprise application management, and support and integration services. The company's products and platforms include Finacle, a core banking solution; Edge suite of products; Infosys Nia, an artificial intelligence platform; Infosys McCamish - an insurance platform; Wingspan, a customizable learning platform; Stater mortgage servicing platform; Panaya automation suite; and Skava, an e-commerce suite. The company serves clients in the financial services and insurance, life sciences and healthcare, manufacturing, retail, consumer packaged goods and logistics, hi-tech, communications, telecom OEM, media, energy, utilities, resources, services, and other industries. It has collaboration agreements with Rolls-Royce, BP plc, Newmont Corporation, RXR Realty, Majesco Limited, and Centre for Accessibility Australia; and a strategic partnership with The Economist Group Limited to enable and enhance sustainability solutions through a business-to-business model. The company was formerly known as Infosys Technologies Limited and changed its name to Infosys Limited in June 2011. Infosys Limited was incorporated in 1981 and is headquartered in Bengaluru, India.

How the Company Makes Money

Infosys Limited generates revenue primarily through its IT services and consulting offerings. The company's revenue model is centered around providing end-to-end solutions that include software development, systems integration, and IT-enabled services. Key revenue streams include consulting and systems integration services, business process management, cloud and infrastructure services, and digital transformation offerings. Infosys also earns from maintenance services and product licensing. Significant partnerships with global enterprises, as well as strategic acquisitions, further bolster its earnings. The company benefits from long-term contracts with clients across various industries, ensuring a stable and recurring income base. Additionally, Infosys invests in innovation hubs and centers of excellence worldwide to maintain its competitive edge and cater to the evolving needs of its clients.

Infosys Limited Financial Statement Overview

Summary

Infosys Limited is in a strong financial position with consistent revenue growth, stable profitability margins, and a solid balance sheet characterized by low leverage and high equity. The company demonstrates excellent cash flow management, highlighted by significant free cash flow growth and robust cash conversion ratios. While profitability margins show minor contraction, the company continues to efficiently manage operations and financial resources.

Income Statement

Infosys Limited has demonstrated consistent revenue growth, with a notable increase in Total Revenue from $18.562 billion in 2024 to $19.277 billion in TTM (Trailing-Twelve-Months), representing a 3.97% growth rate. The Gross Profit Margin remains strong at 30.47% in TTM, indicating effective cost management, while the Net Profit Margin is slightly lower at 16.38% compared to 17.06% in 2024, suggesting a small contraction in profitability. EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The company maintains a healthy financial position with an Equity Ratio of 64.35% in TTM, indicating strong capitalization. The Debt-to-Equity Ratio is low at 0.06, showcasing minimal leverage and a conservative financial strategy. Return on Equity stands at 28.17%, demonstrating effective use of shareholder funds despite a slight decrease from 30% in 2024.

Cash Flow

Infosys Limited shows robust cash flow management, with a significant increase in Free Cash Flow from $2.882 billion in 2024 to $4.088 billion in TTM, reflecting a 41.85% growth. The Operating Cash Flow to Net Income Ratio is 1.38, indicating strong cash generation relative to earnings. The Free Cash Flow to Net Income Ratio is 1.29, suggesting efficient conversion of earnings into cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.51B	19.28B	18.56B	18.21B	16.31B	13.56B
Gross Profit	5.94B	5.87B	5.47B	5.50B	5.32B	4.61B
EBITDA	4.67B	4.42B	4.21B	4.68B	4.12B	4.06B
Net Income	3.20B	3.16B	3.17B	2.98B	2.96B	2.61B
Balance Sheet
Total Assets	17.45B	17.42B	16.52B	15.31B	15.55B	14.82B
Cash, Cash Equivalents and Short-Term Investments	4.09B	4.51B	3.43B	2.36B	3.23B	3.75B
Total Debt	693.00M	962.00M	1.00B	1.01B	722.00M	728.00M
Total Liabilities	6.33B	6.16B	5.92B	6.09B	5.56B	4.32B
Stockholders Equity	11.07B	11.21B	10.56B	9.17B	9.94B	10.44B
Cash Flow
Free Cash Flow	3.88B	4.09B	2.88B	2.53B	3.06B	2.97B
Operating Cash Flow	4.18B	4.35B	3.15B	2.85B	3.35B	3.26B
Investing Cash Flow	-399.00M	-361.00M	-708.00M	-218.00M	-1.00B	-1.13B
Financing Cash Flow	-3.94B	-2.88B	-2.12B	-3.29B	-3.33B	-1.32B

Infosys Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1475.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INFY, the sentiment is Negative. The current price of 1475.15 is below the 20-day moving average (MA) of 1491.33, below the 50-day MA of 1480.74, and below the 200-day MA of 1614.71, indicating a bearish trend. The MACD of -11.87 indicates Positive momentum. The RSI at 43.75 is Neutral, neither overbought nor oversold. The STOCH value of 38.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INFY.

Infosys Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WIPRO	77 Outperform	₹2.54T	18.73	―	4.54%	0.41%	20.30%
INFY	75 Outperform	₹6.13T	22.41	―	2.95%	7.03%	2.21%
LTIM	68 Neutral	₹1.56T	32.11	―	2.08%	7.64%	3.35%
TCS	68 Neutral	₹10.81T	21.94	―	3.93%	4.92%	5.63%
HCLTECH	66 Neutral	₹3.84T	22.22	―	3.35%	6.87%	3.34%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TECHM	55 Neutral	₹1.41T	28.04	―	3.13%	2.88%	79.99%

Infosys Limited Corporate Events

Infosys Faces Penalty for Singapore GST Discrepancy

Infosys Limited has disclosed a penalty imposed by the Inland Revenue Authority of Singapore related to GST payment discrepancies for the period from April to June 2025, amounting to SGD 97,035.90. The company stated that this penalty will not have a material impact on its financials, operations, or other activities, indicating a minimal effect on its overall business operations and stakeholder interests.

Infosys Partners with RWE AG for Digital Workplace Transformation

Infosys has announced a strategic collaboration with RWE AG, a German multinational energy company, to drive automated digital workplace transformation. This partnership aims to enhance RWE’s operational efficiency by implementing solutions that automate processes and enable self-service options, leveraging Infosys’s expertise in digital workplace transformations. The collaboration underscores Infosys’s commitment to supporting RWE’s sustainability and efficiency goals, ultimately empowering RWE’s workforce and fostering a productive environment for sustainable growth.