Infosys Limited (INFY) AI Stock Analysis

• Market Cap: ₹6.10T
• Dividend Yield: 2.79%
• Average Volume (3M): 402.96K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.92
• 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: ₹1,692.54
• Price Target Upside: 4.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ₹1,696.00 ▲(4.95% Upside)

Infosys Limited scores well due to its strong financial performance, characterized by robust profitability and a solid balance sheet. The technical analysis supports a positive short-term trend, although caution is advised due to potential overbought conditions. The valuation is fair, with a reasonable P/E ratio and a good dividend yield. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strategic Collaborations

This collaboration enhances Infosys's market position by expanding its cloud-native solutions, potentially driving long-term revenue growth through increased service offerings and client acquisition.

Cash Flow Management

Efficient cash generation supports future investments and shareholder returns, indicating strong financial health and operational efficiency.

Balance Sheet Strength

A low leverage ratio indicates financial stability and low risk, providing flexibility for strategic investments and resilience in economic downturns.

Negative Factors

Cash Flow Growth

While cash flow is strong, slower growth rates may limit the company's ability to scale investments and expand operations at the desired pace.

Revenue Growth

Moderate revenue growth could indicate challenges in capturing market share or expanding service offerings compared to faster-growing competitors.

Profit Margin Pressure

While profitable, maintaining margins in a competitive industry may require cost management and innovation to sustain long-term profitability.

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 demonstrates strong financial performance with consistent revenue growth, robust profitability, and a solid balance sheet. The company maintains low leverage, high return on equity, and efficient cash flow management. While the financials are impressive, continuous monitoring of cash flow growth and maintaining operational efficiency will be key to sustaining this performance.

Income Statement

Infosys Limited demonstrates strong profitability with a consistent gross profit margin around 30% and a net profit margin of approximately 16%. The company has shown solid revenue growth, particularly in the TTM period, indicating robust business expansion. EBIT and EBITDA margins are healthy, reflecting efficient operational management. Overall, the income statement reflects a stable and growing financial performance.

Balance Sheet

The balance sheet of Infosys Limited is strong, characterized by a low debt-to-equity ratio of approximately 0.06, indicating low financial leverage and a conservative capital structure. The return on equity is impressive at nearly 30%, showcasing effective use of shareholder funds. The equity ratio is solid, reflecting a strong asset base supported by equity. Overall, the balance sheet indicates financial stability and low risk.

Cash Flow

Infosys Limited's cash flow statement shows positive trends with a healthy free cash flow to net income ratio close to 0.93, indicating efficient cash generation relative to earnings. The operating cash flow to net income ratio is also strong, reflecting good cash conversion. Free cash flow growth is positive, supporting future investments and shareholder returns. Overall, the cash flow position is robust, though there is room for improvement in cash flow growth rates.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.69B	19.28B	18.56B	18.21B	16.31B	13.56B
Gross Profit	5.98B	5.87B	5.47B	5.50B	5.32B	4.61B
EBITDA	4.64B	4.42B	4.21B	4.68B	4.12B	4.06B
Net Income	3.27B	3.16B	3.17B	2.98B	2.96B	2.61B
Balance Sheet
Total Assets	18.06B	17.42B	16.52B	15.31B	15.55B	14.82B
Cash, Cash Equivalents and Short-Term Investments	5.02B	4.51B	3.43B	2.36B	3.23B	3.75B
Total Debt	986.00M	962.00M	1.00B	1.01B	722.00M	728.00M
Total Liabilities	6.38B	6.16B	5.92B	6.09B	5.56B	4.32B
Stockholders Equity	11.63B	11.21B	10.56B	9.17B	9.94B	10.44B
Cash Flow
Free Cash Flow	4.14B	4.09B	2.88B	2.53B	3.06B	2.97B
Operating Cash Flow	4.44B	4.35B	3.15B	2.85B	3.35B	3.26B
Investing Cash Flow	-962.00M	-361.00M	-708.00M	-218.00M	-1.00B	-1.13B
Financing Cash Flow	-2.44B	-2.88B	-2.12B	-3.29B	-3.33B	-1.32B

Infosys Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1615.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1615.95 is above the 20-day moving average (MA) of 1546.81, above the 50-day MA of 1497.37, and above the 200-day MA of 1521.69, indicating a bullish trend. The MACD of 26.68 indicates Negative momentum. The RSI at 69.74 is Neutral, neither overbought nor oversold. The STOCH value of 90.20 is Negative, 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	80 Outperform	₹10.82T	21.88	―	3.64%	3.62%	4.43%
LTIM	78 Outperform	₹1.67T	34.16	―	1.07%	8.72%	4.54%
INFY	76 Outperform	₹6.10T	21.63	―	2.79%	7.90%	4.28%
HCLTECH	73 Outperform	₹4.15T	24.39	―	2.85%	7.52%	0.87%
WIPRO	71 Outperform	₹2.72T	20.15	―	4.23%	1.10%	14.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TECHM	55 Neutral	₹1.38T	27.80	―	2.87%	3.30%	36.78%

Infosys Limited Corporate Events

Infosys Faces Penalty for ITC Discrepancy

Infosys Limited has disclosed a communication regarding a penalty from the Joint Commissioner of CGST for an alleged excess availment of Input Tax Credit (ITC) for the fiscal year 2018-19. The penalty amounts to INR 23,08,904, but the company has stated that this will have no material impact on its financials, operations, or other activities.

Infosys Announces Merger of Romanian Subsidiaries to Streamline Operations

Infosys Limited announced the merger of its wholly owned step-down subsidiaries, Infosys Romania and ProIT, as part of an internal restructuring effort. This merger aims to enhance operational synergies and streamline the company’s group structure. The transaction, involving no cash consideration, is exempt from related party transaction regulations due to both entities being wholly owned subsidiaries of Infosys Limited. The merger is not expected to affect the shareholding pattern of Infosys Limited.

Infosys Faces GST Penalty with No Material Impact on Operations

Infosys Limited has disclosed a communication from the Joint Commissioner of CGST regarding a penalty of INR 13,60,11,264 for alleged non-payment of GST related to employee stays in guest houses for business purposes from FY 2018-19 to 2022-23. The company stated that there is no material impact on its financials or operations due to this penalty, and it is currently verifying the details of the communication to determine further steps.

Infosys Engages Investors with December 2025 Conferences

Infosys Limited announced its participation in several investor meetings and conferences scheduled for December 2025. These events, including virtual group calls and non-deal roadshows in locations such as San Francisco, Chicago, and New York, will feature key company executives like the Chief Financial Officer and the Chief Technology Officer. The participation in these events underscores Infosys’s commitment to engaging with investors and stakeholders, potentially enhancing its market visibility and investor relations.

Infosys Announces Dispatch of Buyback Offer

Infosys Limited has announced the publication of a newspaper advertisement regarding the dispatch of a Letter of Offer related to a buyback of its outstanding equity shares. The advertisement was published in several major newspapers, including The Economic Times and Business Standard, as well as in The New York Times. This move is part of Infosys’ strategic financial management, potentially impacting its market positioning and shareholder value.

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.