Buy Infosys; target of Rs 2200: Motilal Oswal

Motilal Oswal is bullish on Infosys recommended buy rating on the stock with a target price of Rs 2200 in its research report dated January 14, 2026.

Broker Research

January 15, 2026 / 12:02 IST

Buy

Motilal Oswal's research report on Infosys

Infosys (INFO) reported 3QFY26 revenue of USD5.1b, up 0.6% QoQ in CC/ 1.7% YoY in CC vs. our estimate of 0.3% QoQ in CC. Adj. EBIT margin stood at 21.2%, in line with our estimate of 21.1%. Adj. EBIT rose 3.1% QoQ/8.2% YoY to INR96b (est. INR95b). Adj. PAT came in at INR76b, up 3.5% QoQ/12.0% YoY, above our estimate of INR73b. This excludes INR12.8b (2.8% of 3QFY26 revenue) new labour code–related impact on gratuity and leave liabilities. Management upgraded guidance for FY26 CC revenue growth to 3-3.5% (from 2-3% earlier). Ask rate for top end of guidance in 4QFY26 is now flat (vs. earlier expectation 1% decline). Large deal TCV stood at USD4.8b, up 55% QoQ. The book-to-bill ratio was 0.9x. Net new TCV was up 32% QoQ. For 9MFY26, revenue/adj. EBIT/adj. PAT grew 8.3%/7.5%/11.3% YoY in INR terms. In 4QFY26, we expect INFO’s revenue/adj. EBIT/adj. PAT to grow 12.2%/14.0%/9.4% YoY.

Outlook

We value INFO at 26x FY28E EPS with a TP of INR2,200, implying a 37% upside potential. INFO remains our top pick among tier-1 IT names and we reiterate our BUY rating on the stock.

For all recommendations report, click here