Infosys Opens Its Biggest-Ever Rs. 18,000 Crore Buyback Tomorrow – Market Watch (20 Nov 2025)
Introduction
Infosys Ltd, India’s second-largest IT services company, is set to open its biggest-ever Rs. 18,000 crore share buyback programme on 20 November 2025, priced at Rs. 1,800 per share, offering a substantial premium over the current market price of Rs. 1,539.60.
The tender window will remain open from 20–26 November, during which eligible shareholders can submit shares for repurchase. The development has boosted market sentiment, with Infosys shares rising 3.58% in today’s trade.
With promoters choosing not to participate, strong cash reserves, and a consistent history of capital return, this buyback positions Infosys firmly under investor focus.
Let’s explore the company’s fundamentals, buyback structure, past capital distribution, financial positioning, and what investors should track ahead.
About the Company
Infosys Ltd is a global leader in consulting, digital transformation, cloud services, automation, and next-generation technology solutions. Headquartered in Bengaluru, the company serves enterprises across BFSI, retail, manufacturing, life sciences, telecom, and energy segments.
With operations in over 50 countries and 300,000+ employees, Infosys remains one of India’s most influential IT exporters and a key component of the Nifty 50 and Sensex indices.
Business Profile
Infosys delivers digital, technology, and outsourcing services across global industries. Its revenue comes mainly from:
-
Digital Services (~57%) – AI, cloud, analytics, cybersecurity, digital engineering.
-
Core IT Services (~43%) – Application development, maintenance, infrastructure, enterprise solutions.
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Products & Platforms – Finacle, EdgeVerve, Panaya, McCamish, and digital automation tools.
The company has a diversified revenue mix across BFSI, retail, telecom, manufacturing, and global markets led by North America and Europe.
Key Facts
|
Metric |
Details |
|
Company Name |
Infosys Limited |
|
Founded Year |
1981 |
|
Promoters |
N.R. Narayana Murthy & founding group |
|
Headquarters |
Bengaluru, Karnataka |
|
Industry |
IT Services / Consulting / Digital Transformation |
|
CEO & MD |
Salil Parekh |
|
Market Cap (Nov 2025) |
Rs. 6,38,345 Cr. |
|
Face Value |
Rs. 5 |
|
ROCE |
37.5 % |
|
ROE |
28.80% |
|
Book Value |
Rs. 249 |
|
Promoter Holding (Sept 2025) |
14.30% |
|
Geographical Presence |
50+ countries |
|
NSE Code |
INFY |
|
BSE Code |
500209 |
Infosys Ltd Moves in 2025
Major Updates This Year
-
November 2025
November was dominated by Infosys’ record Rs. 18,000 crore buyback, opening on 20 November at Rs. 1,800 per share, with promoters opting out. The stock gained as the buyback progressed, supported by strong Q2 results showing a 13% rise in net profit and steady margins. The company also paid an interim dividend of Rs. 23 per share, keeping investor interest firm amid a sector-wide IT rally.
-
October 2025
In October, the board met to finalise and approve the interim dividend. Infosys shares recovered through the month, aided by festive-season demand and stable market sentiment. The company fixed 27 October as the record date.
-
September 2025
September saw the board officially approving the Rs. 18,000 crore buyback, along with securing necessary regulatory clearances. Infosys also allotted RSU-linked shares during the month. The stock showed mixed movement but remained active ahead of the buyback announcement.
-
August 2025
Infosys strengthened its global partnerships in August, announcing collaborations with One Bright Kobe in Japan and Mastercard to enhance cross-border payments through Finacle. The company also completed digital transformation work for Bank CTBC Indonesia, supporting its global banking portfolio.
-
July 2025
In July, Infosys deepened its presence in Australia through a Finacle-led project with Uniting Financial Services, while the stock moved in line with broader IT sector momentum.
-
June 2025
June saw Infosys introduce a new AI Agent for the energy sector, built on Infosys Topaz to enhance automation and operational efficiency for global utility clients.
Evolution of Infosys Ltd
|
Year |
Milestone |
|
1981 |
Infosys is founded in Pune by N.R. Narayana Murthy and six engineers with $250 in seed capital. |
|
1983 |
Headquarters relocated to Bengaluru. |
|
1987 |
Opens first international office in Boston, USA. |
|
1993 |
Infosys goes public in India with its maiden IPO. |
|
1996 |
Launches Infosys Foundation for social and community development. |
|
1997 |
Expands globally with a new office in Toronto, Canada. |
|
1998 |
Introduces its Enterprise Solutions practice. |
|
1999 |
Becomes the first Indian company listed on NASDAQ; revenue crosses $100 million; earns CMM Level 5 certification. |
|
2000 |
Revenue crosses $200 million; global expansion accelerates across Europe and Asia. |
|
2001–2002 |
Revenue crosses $500 million; launches BPO subsidiary Progeon (later Infosys BPM). |
|
2005 |
Revenue surpasses $1 billion, marking a major growth milestone. |
|
2006 |
Infosys completes 25 years of operations. |
|
2014 |
Dr. Vishal Sikka becomes CEO; revenue surpasses Rs. 50,000 crore. |
|
2016 |
Launches digital platforms such as Infosys Mana and Skava Commerce; revenue approaches $10 billion. |
|
2021 |
Crosses Rs. 1,00,000 crore in revenue; expands across North America, Europe & APAC. |
|
2024 |
Recognised as one of the World’s Most Ethical Companies for the 4th consecutive year; revenue reaches US$18.8 billion. |
Financial Performance Overview
Quarterly Results Snapshot (All Figures in Cr.)
|
Particulars |
Mar 2024 |
Sep 2024 |
Mar 2025 |
Sep 2025 |
|
Sales |
32,001 |
34,257 |
34,136 |
36,907 |
|
Operating Profit |
7,715 |
8,401 |
8,379 |
8,848 |
|
OPM (%) |
24% |
25% |
25% |
24% |
|
Net Profit |
8,480 |
6,813 |
6,628 |
7,759 |
|
EPS (Rs. ) |
20.43 |
16.41 |
15.96 |
18.68 |
Infosys maintained steady performance across FY24–FY25, with sales increasing from Rs. 32,001 crore in Mar 2024 to Rs. 36,907 crore in Sep 2025. Operating margins stayed stable around 24–25%, reflecting disciplined delivery and cost efficiency. Net profit and EPS remained resilient despite quarterly volatility, supported by strong deal execution and healthy client demand.
Yearly Financial Comparison (FY24 vs FY25)
|
Metric |
FY24 |
FY25 |
Growth (FY24 → FY25) |
|
Sales (Rs. Crore) |
128,933 |
136,592 |
6% |
|
Expenses (Rs. Crore) |
97,176 |
103,093 |
6% |
|
Operating Profit (Rs. Crore) |
31,757 |
33,499 |
6% |
|
OPM (%) |
25% |
25% |
Stable |
|
Other Income (Rs. Crore) |
7,417 |
4,782 |
-36% |
|
Interest (Rs. Crore) |
277 |
221 |
Lower due to reduced debt |
|
Depreciation (Rs. Crore) |
2,944 |
2,619 |
Declined with optimized assets |
|
Profit Before Tax (Rs. Crore) |
35,953 |
35,441 |
Flat |
|
Net Profit (Rs. Crore) |
27,234 |
25,568 |
-6% |
|
EPS (Rs. ) |
65.61 |
61.56 |
-6% |
|
Dividend Payout (%) |
70% |
70% |
Stable |
FY25 witnessed steady revenue growth of 6% with operating margins holding firm at 25%, demonstrating consistent cost management. Net profit and EPS declined slightly due to lower other income and interest variations, yet the company maintained a robust dividend payout of 70%, underscoring commitment to shareholder returns.
Balance Sheet Highlights
(All Figures are in Crores.)
|
Particulars |
Mar 2024 |
Mar 2025 |
|
Equity Capital |
2,075 |
2,076 |
|
Reserves |
79,101 |
85,256 |
|
Borrowings |
3,766 |
3,459 |
|
Other Liabilities |
30,008 |
33,648 |
|
Total Liabilities |
114,950 |
124,439 |
|
Fixed Assets |
14,327 |
13,359 |
|
CWIP |
277 |
778 |
|
Investments |
34,659 |
38,518 |
|
Other Assets |
65,687 |
71,784 |
|
Total Assets |
114,950 |
124,439 |
FY25 saw notable growth in reserves, reflecting strong profitability, and an increase in other liabilities to support ongoing operations and expansion initiatives. While borrowings slightly declined, the company invested significantly in CWIP and investments, indicating continued capacity expansion and strategic asset allocation. Overall, the balance sheet reflects a stronger financial position with enhanced operational bandwidth and a solid foundation for future growth.
Cash Flow Summary (All Figures are in Crores.)
|
Particulars |
FY24 (Mar 2024) |
FY25 (Mar 2025) |
|
Cash from Operating Activities |
20,787 |
29,409 |
|
Cash from Investing Activities |
–3,305 |
–1,956 |
|
Cash from Financing Activities |
–15,825 |
–21,379 |
|
Net Cash Flow |
1,657 |
6,074 |
FY25 marked a strong operational performance with cash from operating activities increasing significantly to Rs. 29,409 Cr, driven by higher revenues and improved collections. Investing outflows moderated compared to FY24, reflecting controlled capital expenditures and strategic allocation of funds. Financing outflows increased due to higher debt repayment and shareholder distributions. Overall, the company generated a robust net cash flow of Rs. 6,074 Cr, strengthening its liquidity position and supporting ongoing growth initiatives.
Shareholding Pattern (Sep 2025)
|
Category |
Sep 2025 |
|
Promoters |
14.30% |
|
FIIs |
30.08% |
|
DIIs |
41.46% |
|
Government |
0.20% |
|
Public |
13.70% |
|
Others |
0.24% |
|
No. of Shareholders |
27,19,353 |
Peer Comparison
|
Company |
CMP (Rs. ) |
P/E |
Market Cap (Rs. Cr) |
Div Yld (%) |
Qtr NP (Rs. Cr) |
Qtr Profit Var (%) |
Qtr Sales (Rs. Cr) |
Qtr Sales Var (%) |
ROCE (%) |
|
3,147.60 |
23 |
11,38,829 |
2 |
12,131 |
8.54% |
65,799 |
2.40% |
64.63 |
|
|
1,538.05 |
24 |
6,38,968 |
3 |
7,759 |
13.29% |
36,907 |
7.74% |
40.58 |
|
|
1,661.45 |
27 |
4,50,862 |
3.25 |
4,236 |
0.00% |
31,942 |
10.67% |
31.61 |
|
|
245.9 |
19 |
2,57,809 |
2 |
3,262 |
1.17% |
22,697 |
1.77% |
19.51 |
|
|
5,983.00 |
37 |
1,77,390 |
1.12 |
1,381 |
12.00% |
10,394 |
10.19% |
27.63 |
TCS and Infosys continue to lead the IT sector in both market capitalization and quarterly profitability, with TCS showing strong ROCE of 64.63% and steady profit growth. Infosys posted solid profit and sales growth of 13.29% and 7.74%, respectively. HCL Technologies and LTIMindtree are showing robust sales expansion, with LTIMindtree posting a notable 10.19% quarterly sales growth. Wipro’s growth remains modest but maintains a stable dividend yield of 2.45%. This comparison highlights the relative positioning of top IT players in terms of profitability, growth, and capital efficiency.
Upcoming Plans
Following its Rs. 18,000?crore buyback, Infosys is focusing on strategic growth and global expansion:
-
New Mohali Campus: Investing Rs. 300?crore to build a 7.8?lakh sq.?ft. campus, creating ~2,500 jobs.
-
AI & Cloud: Launching Infosys Topaz, an AI-first enterprise platform on Google Cloud and Microsoft Azure.
-
Global Acquisitions: Acquiring 75?% of Australia’s Versent Group (~US?$153?million) to expand cloud services.
-
Sustainability & Skilling: Advancing ESG Vision?2030 and upskilling initiatives, including district-level officer programs in Karnataka.
These moves reinforce Infosys’s focus on AI-led services, global reach, talent development, and sustainable growth.
Corporate Actions
-
Declared interim dividend of Rs. 23/share on 27 Oct 2025.
-
Earlier final dividend of Rs. 22/share in May 2025; total 12-month payout: Rs. 45/share.
-
Dividend yield at current price Rs. 1,535: 2.93%.
-
Latest board meeting: 16 Oct 2025; approved quarterly results & interim dividend.
-
Bonus history: last bonus 1?:?1, ex-date 04 Sep 2018.
Strengths & Risks
Strengths
-
Virtually debt-free, reflecting strong balance sheet.
-
ROE: 34.02%, showing efficient profit generation.
-
Cash conversion cycle: 115 days, indicating effective working capital management.
Risks
-
Revenue dependent on large enterprise clients.
-
Global IT demand fluctuations could impact growth.
-
Talent retention and wage inflation may affect margins.
-
Intense competition in IT services and digital transformation space.
Market Performance & Sentiment
Infosys has started FY26 on a strong footing, posting a sequential revenue growth of 2.6% and securing $3.8?billion in large deals, largely driven by its leadership in enterprise AI. The company has developed 300 AI agents, reinforcing its position in digital transformation services. Operational performance remains resilient, with improved utilization rates and robust free cash flow generation.
Despite these positives, ongoing macroeconomic uncertainties, including tariffs and geopolitical tensions, have led the company to revise its FY26 revenue guidance to a cautious 1–3% growth range. While AI adoption, vendor consolidation, and large enterprise deals present clear growth opportunities, margin pressures persist due to rising compensation costs and cautious client spending. Overall, market sentiment is cautiously optimistic, supported by Infosys’s strategic investments, strong deal pipeline, and effective cost management.
Strategic Outlook (2026 & Beyond)
-
Infosys focuses on AI-first strategy and enterprise automation.
-
Expanding global talent hubs and reskilling 2.5?lakh employees.
-
FY26 guidance: 1–3% revenue growth, 20–22% margins.
-
Strong free cash flow supports investments and dividends.
-
Committed to ESG Vision 2030 and enterprise AI adoption.
Investor View
Short-Term Traders
Infosys stock may react to quarterly results, large deal announcements, and updates on AI initiatives or client wins. Positive momentum is likely if revenue growth and margin targets meet expectations.
Long-Term Investors
FY26–FY28 is expected to be a period of steady growth, driven by the AI-first strategy, global talent expansion, and strong free cash flow. Valuations remain reasonable, supported by consistent dividend payouts, robust order pipeline, and strategic investments in enterprise AI and ESG initiatives. Monitoring execution of large deals, talent development, and margin management will be key for sustained returns.
Bottom Line:
Infosys is well-positioned for steady growth over the next 2–3 years. Its AI-first strategy, global talent expansion, strong free cash flow, and focus on ESG initiatives support long-term value creation. Investors should watch deal execution, margin management, and strategic investments as key indicators of sustained performance.
Frequently Asked Questions (FAQ)
-
Why is Infosys stock in focus now?
Due to its Rs. 18,000 crore share buyback, strong Q1 FY26 results, and leadership in enterprise AI.
-
Is Infosys profitable?
Yes. Strong free cash flow and consistent dividend payouts reflect healthy profitability.
-
What are the key growth drivers?
AI-first strategy, global talent expansion, enterprise automation, and ESG initiatives.
-
Does Infosys carry debt?
Infosys is virtually debt-free, with strong cash generation supporting strategic investments.
-
Does Infosys pay dividends?
Yes. Interim dividend of Rs. 23/share declared in Oct 2025; total 12-month payout Rs. 45/share.
Conclusion
Infosys Ltd remains a strong long-term investment play, driven by its AI-first initiatives, global expansion, and operational resilience. With a healthy balance sheet, robust cash flow, and focus on strategic growth areas, the company is well-positioned to create sustainable value for shareholders in the coming years.
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