Buy Infosys; target of Rs 1650: Emkay Global Financial

Emkay Global Financial is bullish on Infosys has recommended buy rating on the stock with a target price of Rs 1650 in its research report dated October 16, 2025.

Broker Research

October 17, 2025 / 14:32 IST

buy

26 Aug, 2025 12:21

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Emkay Global Financial' research report on Infosys

Infosys delivered an in-line operating performance in Q2. Revenue grew 2.2% CC QoQ, aided by ~20bps contribution from M&As and improved realizations from Project Maximus amid soft volumes. EBITM expanded by 20bps QoQ to 21.0%, coming in slightly lower than our estimate. Large deal TCV in Q2 was strong at USD3.1bn, of which 67% is net new. In addition, Infosys signed a USD1.6bn mega-deal with NHS (100% net new) after the end of Q2; the deal will start ramping up within the current fiscal year. The company has narrowed its FY26 revenue growth guidance to 2-3% CC (earlier 1-3%), implying CQGR of -0.2% to -1.5% in H2. H2 is expected to be seasonally softer due to fewer working days, furloughs, and calendar effects, and the revised guidance incorporates elevated uncertainty at the lower end and a stable environment at the upper end. The guidance does not include any revenue from the Telstra JV (expected to close in H2; Versent reported FY25 revenue of AUD211.4mn). It has retained EBITM guidance range of 20-22% for FY26. We largely retain FY26-28E EPS, factoring in an in-line Q2.

Outlook

We retain BUY on the stock with TP of Rs1,650 at 21x Sep-27E EPS.

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