Infosys shares in focus after Q1 PAT rises 9% YoY. Should you buy, sell or hold?
Infosys
will be on investors' radar on Thursday, July 24, after the IT major reported a 9% year-on-year (YoY) increase in its consolidated net profit for the April–June quarter of FY26 to Rs 6,921 crore, beating Street expectations.
India's second-largest IT services exporter also posted an 8% YoY rise in revenue from operations to Rs 42,279 crore for the quarter ended June. In constant currency (CC) terms, revenue grew 3.8% YoY and 2.6% sequentially.
Explore courses from Top Institutes in
Please select course:
Select a Course Category
Finance
Project Management
others
MCA
Healthcare
Technology
Product Management
Operations Management
Leadership
CXO
Others
Management
Digital Marketing
Cybersecurity
Design Thinking
Data Science
Degree
Data Analytics
Artificial Intelligence
healthcare
Public Policy
Data Science
PGDM
MBA
Skills you'll gain:
Duration:
7 Months
S P Jain Institute of Management and Research
CERT-SPJIMR Fintech & Blockchain India
Starts on
undefined
Get Details
Skills you'll gain:
Duration:
9 Months
IIM Calcutta
SEPO - IIMC CFO India
Starts on
undefined
Get Details
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Victoria Principal Is Almost 75, See Her Now
Reportingly
The Bengaluru-headquartered firm bagged deals worth $3.8 billion during the quarter, 55% of which were net new.
Gross profit rose to Rs 13,055 crore, up from Rs 12,138 crore in the same quarter last year, reflecting operational efficiency and growth momentum. However, the operating margin for Q1 stood at 20.8%, marking a decline of 30 basis points YoY and 20 basis points QoQ.
Despite the dip, the company has maintained its margin guidance between 20–22% for the rest of FY26.
Live Events
Infosys also revised its full-year revenue growth guidance, raising the lower end to 1% while keeping the upper end unchanged at 3% in constant currency terms—signaling cautious optimism amid global macroeconomic uncertainties.
Post the company's Q1 results, here is what brokerages said about the stock:
Nomura: Buy | Target price: Rs 1,880 (earlier Rs 1,900)
Nomura has maintained its 'buy' rating on Infosys while slightly trimming the target price to Rs 1,880 from Rs 1,900.
The brokerage has lowered its FY26 organic growth forecast by 40 basis points but expects reduced third-party costs to support margins, offsetting ramp-up expenses from large deal wins. Nomura projects Infosys' FY26 EBIT margin at 21.1%, within the company's guided range of 20–22%.
It also estimates FY26 USD revenue growth at 3.8% YoY, including about 40 basis points from acquisitions. Despite the slight revision in estimates, Infosys remains Nomura's top large-cap IT pick.
Motilal Oswal: Neutral | Target price: Rs 1,750 (earlier Rs 1,800)
Motilal Oswal Financial Services
has retained a 'neutral' stance on Infosys while lowering its target price to Rs 1,750 from Rs 1,800.
The brokerage noted a strong start to the fiscal year, but said the overall outlook remains unchanged. Infosys has revised its FY26 constant currency revenue growth guidance to 1–3%, up from 0–3%.
The company reported robust deal wins, with total contract value (TCV) rising 46% QoQ to $3.8 billion, and net new TCV up 50% QoQ. However, management remains cautious on discretionary spending, with no meaningful pickup in client demand yet.
Progress in enterprise AI is viewed positively, but Motilal believes near-term catalysts are limited. For Q2FY26, it expects Infosys to report a 7.1% rise in revenue, 9.7% EBIT growth, and 11.0% YoY increase in PAT.
Also read:
Mukul Agrawal adds 7 new stocks to portfolio; picks include recently listed stock. Check details
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
13 minutes ago
- Economic Times
Raymond Realty shares in focus after Q1 profit more than doubles
Shares of Raymond Realty are likely to be in focus on Wednesday after the company reported a 121.8% year-on-year (YoY) surge in consolidated net profit for the first quarter of FY26, rising to Rs 16.5 crore from Rs 7.4 crore in Q1FY25. ADVERTISEMENT In its first earnings report since the demerger from Raymond on May 1, the company posted consolidated revenue of Rs 374.4 crore, up 188.7% YoY. However, on a like-to-like basis (post-demerger), revenue declined 23% YoY, while EBITDA dropped 39% YoY to Rs 41 crore. Explaining the dip, Managing Director Harmohan Sahni told Business Standard, 'We had done a bumper Q3 and Q4 last year and were low on inventory in Q1. Demand was strong, but we didn't have enough inventory to sell. We had to rush to get approvals for fresh launches.' Booking value stood at Rs 306 crore in Q1FY26, down from Rs 611 crore a year ago. Collections also declined to Rs 374 crore from Rs 483 crore in the same period. However, Sahni said pricing remained firm, with realisations up 5% Realty's current real estate portfolio has a potential revenue of Rs 40,000 crore, including Rs 25,000 crore from a 100-acre land parcel in Thane. The company is also developing six joint development agreement (JDA) projects with a revenue potential of Rs 14,000 crore. Also Read: PNB Housing Finance, RBL Bank among 10 small-cap stocks where FIIs increased stake in Q1 ADVERTISEMENT Raymond Realty shares technical indicators On the technical side, the stock's relative strength index (RSI) is at 31.9, indicating it is nearing the oversold zone. It is trading above its 5-day and 10-day simple moving averages but below the 20-day average. ADVERTISEMENT Raymond Realty share price performance Shares of Raymond Realty closed 4.4% higher at Rs 725.6 on Tuesday, even as the Sensex fell 0.38%. The stock is down 4% over the past two weeks and 22% in the last month. Market capitalisation stands at Rs 4,830 crore. Also Read: These 10 stocks delivered consistent dividend yields over the last 3 years ADVERTISEMENT (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
13 minutes ago
- Economic Times
Britannia Industries shares in focus after Q1 PAT edges up 2% YoY
Britannia witnessed double-digit growth across its four key focus states and in bakery categories like rusk, wafers, and croissants. Britannia Industries reported a modest 2% YoY increase in PAT for Q1 FY26, reaching Rs 521 crore, with revenue up 9% to Rs 4,622 crore. Executive Vice-Chairman Varun Berry attributed the 10% sales growth to focused execution and efficiency improvements. The company experienced double-digit growth in key states and bakery categories, supported by improving consumption trends. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Shares of Britannia Industries are expected to remain in focus on Wednesday after the FMCG major reported a modest 2% year-on-year (YoY) growth in profit after tax (PAT) for the first quarter of FY26. The company posted a consolidated net profit of Rs 521 crore, up from Rs 506 crore in Q1 revenue from operations during the quarter came in at Rs 4,622 crore, registering a 9% YoY growth as against Rs 4,250 crore in the same quarter last a sequential basis, however, PAT was down 7% from Rs 560 crore in Q4 FY25, despite a 4% QoQ rise in revenue from Rs 4,432 crore in the preceding on the performance, Executive Vice-Chairman and CEO Varun Berry highlighted the success of Britannia's focused execution strategy, which involved extracting greater value from existing retail outlets, agile servicing of key stores, and efficiency improvements across the distribution network. These measures, Berry said, contributed to a 10% sales company witnessed double-digit growth across its four key focus states and in bakery categories like rusk, wafers, and croissants. A marginal improvement in consumption, both in urban and rural markets, supported by moderating inflation, also contributed to the company's return to double-digit growth after a few muted the expense front, total costs surged to Rs 3,973 crore, up from Rs 3,600 crore in Q1 FY25 and Rs 3,739 crore in Q4 FY25. The cost of materials consumed was Rs 2,551 crore, marking a 15% YoY and 4.5% QoQ costs fell slightly to Rs 26 crore, while profit before tax stood at Rs 701 crore, compared to Rs 681 crore in Q1 FY25 and Rs 752 crore in Q4 shares, on Tuesday, closed 2.7% lower at Rs 5,631.35 on the read: Jane Street guys are brilliant mathematicians, but we can have PhDs too: Sebi chief (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
21 minutes ago
- Time of India
Stock market today: Nifty50 opens flat; BSE Sensex near 80,700 ahead of RBI policy decision
Stock market today: Indian equity benchmark indices, and , opened in flat in trade on Wednesday ahead of the RBI monetary policy review decision. While Nifty50 was near 24,650, BSE Sensex was flat at around 80,700. Tired of too many ads? go ad free now At 9:16 AM, Nifty50 was trading at 24,643.20, down 6 points or 0.026%. BSE Sensex was at 80,723.59, up 13 points or 0.017%. Market experts anticipate sideways trading, with attention focused on the Reserve Bank of India's monetary policy announcement, where rates are likely to remain unchanged. US equities finished lower on Tuesday as market participants assessed tariff implications, with companies like Yum Brands highlighting trade duty impacts in their reports. Asian equities showed mixed performance at opening, influenced by soft US services data creating uncertainty about Federal Reserve's strategy. Gold prices rose for the fifth consecutive session on Wednesday, driven by potential US interest rate cuts, as market participants await President Donald Trump's announcement regarding Federal Reserve appointments. Foreign portfolio investors sold shares worth Rs 22 crore net on Tuesday. Domestic institutional investors were net purchasers, investing Rs 3,840 crore. (Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India) Stay informed with the latest business news, updates on bank holidays and public holidays.
