Infosys Reports Profit Jump in Q2 But Cuts Annual Growth Forecast

Infosys posted a consolidated net profit of ₹7,823 crore for the September quarter, marking a 6.2% increase from ₹7,364 crore in the same period last year, but lowered its full-year growth forecast. Consolidated revenue from operations also rose 10.2% year-on-year to ₹49,244 crore. AI-related revenue contributed 10.5% to total earnings and grew 29% from the previous quarter. CEO and Managing Director Salil Parekh stated that the firm secured large deals worth $5.2 billion in the quarter, including a mega deal valued at over $2 billion.

Guidance Cut and Dividend

Despite the quarterly gains, Infosys reduced its revenue growth guidance for FY27 to 1% to 2%, down from its earlier range of 1.5% to 3%. CFO Jayesh Sanghrajka pointed to intense competition and customer demands for higher productivity as the main reasons for pricing pressures and the revised outlook. At the same time, the board approved an interim dividend of ₹26 per share, which is 500% of the stock's face value. November 3 was fixed as the record date for the dividend, with payment scheduled to be completed by November 11. Infosys shares ended 0.3% higher at ₹1,154.50 on the BSE on Friday before the results, while its American depositary receipts fell 6.5% to $12.35.

Context

Major IT service providers in India often adjust their annual growth guidance based on changing global economic conditions and client spending habits. Large technology companies are currently focusing heavily on artificial intelligence integration while navigating tight client budgets and competitive pricing environments. Investors typically track these quarterly updates and technical support levels to decide whether to hold or buy tech stocks during market shifts.