Bengaluru: Infosys Ltd’s shares fell 6% in early morning trades on April 24 despite the company announcing a 21% year on year (YoY) rise in consolidated net profit for the quarter ended March 2026. The Bengaluru-based IT company has also seen its consolidated revenues rise to ₹46,402 crore from ₹40,925 crore, a 13.4% rise from the same quarter last year.
The drop in share price has been attributed to the company’s conservative revenue growth guidance of 1.5% to 3.5% for FY27, given that the recovery in global discretionary spending remained slow. Last quarter, the company’s revenues beat its own estimates, but saw a 2% decline in net profit due to gratuity liability provisions.
Shareholder Rewards: Dividends and Payouts
In its meeting on April 23, Infosys’ board recommended a final dividend of ₹25 per share, with the dividend to be payable on June 25, 2026. Along with the interim dividend, the total dividend payout this year stands at ₹ 46 per share. This move reflects Infosys’ commitment to offering 75% free cash flow for its dividend payout policy, despite its negative revenue growth estimates.
The AI Shift and Macro Hurdles
Currently, Infosys has been facing challenges due to macroeconomic uncertainty and the increased demand to integrate AI led tools by clients. For Infosys, this has meant investing in talent and infrastructure upfront, which can affect its operating margins.
This comes even as the company has won $4.5 billion in contracts in the quarter, with a significant portion dedicated to AI and cloud transformation.
“We delivered a resilient performance in FY26 with growth of 3.1 per cent, with strong large deal wins of USD 14.9 billion, reflecting the robustness of our enterprise AI value proposition and market share gains in large transformation opportunities,” Infosys MD and CEO Salil Parekh said.
“The simplicity and strength of our AI services strategy across six areas is gaining traction in the market, further strengthened by strong ecosystem AI partnerships enabling clients to get value from AI,” he added.
