Infosys Limited (INFY) AI Stock Analysis

• Market Cap: ₹5.99T
• Dividend Yield: 2.99%
• Average Volume (3M): 402.96K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.91
• Revenue Growth: 7.90%
• EPS Growth: 4.28%
• Country: IN
• Employees: 300,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 17.59
• Shares Outstanding: 4,154,401,400
• 10 Day Avg. Volume: 365,556
• 30 Day Avg. Volume: 402,963
• 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: ₹1,701.08
• Price Target Upside: 13.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 75 Outperform
• Price Target: ₹1,720.00 ▲(14.48% Upside)

Infosys Limited's overall stock score reflects strong financial performance and moderate valuation. However, technical indicators suggest caution, and the neutral sentiment from the earnings call due to lowered guidance and increased attrition impacts the score.

Infosys Limited Business Overview & Revenue Model

Company Description

Infosys Limited (INFY) is a global leader in technology services and consulting, headquartered in Bengaluru, India. The company operates in various sectors, including financial services, manufacturing, healthcare, and retail, providing a wide range of services such as application development, maintenance, and independent validation services. Infosys is known for its innovation in digital and cloud services, AI, and automation, helping clients navigate their digital transformation journeys.

How the Company Makes Money

Infosys generates revenue primarily through its IT services and consulting offerings, which include software development, maintenance, and support services. The company operates on a time-and-materials and fixed-price model, allowing for various billing structures based on client needs. Key revenue streams include large enterprise contracts, project-based work, and long-term managed services agreements. Significant partnerships with major technology providers, such as Microsoft and Amazon Web Services, enhance its capabilities and market reach, contributing to earnings through co-developed solutions and joint go-to-market strategies. Additionally, Infosys's focus on emerging technologies and digital transformation enables it to tap into new client segments and increase its service offerings, further driving revenue growth.

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: Positive
• Last Price: 1502.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 1502.4 is above the 20-day moving average (MA) of 1453.56, above the 50-day MA of 1461.72, and below the 200-day MA of 1566.18, indicating a neutral trend. The MACD of 2.41 indicates Negative momentum. The RSI at 58.59 is Neutral, neither overbought nor oversold. The STOCH value of 48.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:INFY.

Infosys Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCS	―	₹10.72T	21.68	―	3.82%	3.62%	4.43%
HCLTECH	―	₹4.06T	23.73	―	3.13%	7.52%	0.87%
INFY	―	₹5.99T	21.23	―	2.99%	7.90%	4.28%
WIPRO	―	₹2.54T	18.83	―	4.51%	1.10%	14.83%
LTIM	―	₹1.66T	34.11	―	1.19%	8.72%	4.54%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TECHM	―	₹1.42T	28.56	―	3.08%	3.30%	36.78%

Infosys Limited Corporate Events

Infosys Faces Penalty Over Export Proceeds Issue

Infosys Limited has announced that it received a communication regarding a penalty from the Assistant Commissioner of Central Tax. The penalty, amounting to INR 1,13,59,395, was issued due to alleged non-realization of export proceeds related to the write-off of invoices for the fiscal years 2018-19 to 2022-23. Despite the financial penalty, Infosys has stated that there is no material impact on its financials, operations, or other activities.

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.