What should investors do with Infosys after Q1 results: buy, sell or hold?

The digital business growth remained strong and was the key driver for topline, rising 9.7 percent sequentially to $2,040 million, but the core business was down 0.7 percent QoQ at $1,742 million.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Infosys share price opened in the green on July 15, a day after the company declared its Q1 results.

The country's second-largest software services provider Infosys reported a consolidated net profit of Rs 5,195 crore for the quarter ended June 2021, thereby growing 2.3 percent sequentially. However, the company increased its full-year revenue growth forecast in constant currency terms to 14-16 percent from 12-14 percent earlier.

Further, it retained full year EBIT margin guidance at 22-24 percent.

Consolidated revenue in rupee terms rose 6 percent quarter-on-quarter (QoQ) to Rs 27,896 crore for the quarter under review and the topline in dollar terms grew by 4.7 percent sequentially to $3,782 million, beating CNBC-TV18 poll estimates which had pegged it at Rs 27,718 crore and $3,758 million, respectively. The revenue growth in constant currency was at 4.8 percent QoQ against expectations of 3.5 percent.

"Driven by the dedication of employees and the trust of clients, we grew at the fastest pace in Q1 in a decade, at 16.9 percent year-on-year and 4.8 percent quarter-on-quarter in constant currency," said Salil Parekh, CEO and MD at Infosys.

Catch all the market action on our live blog

The stock was trading at Rs 1,579.95, up Rs 3.05, or 0.19 percent. It has touched a 52-week high of Rs 1,597.25. It has touched an intraday high of Rs 1,597.25 and an intraday low of Rs 1,551.25.

Here is what brokerages have to say about the stock and the company post Q1 earnings:

Credit Suisse | Rating Outperform | Target raised to Rs 1,890

Infosys Q1 results was a mixed bag. Strong revenue rerformance was offset by weaker margin. Upward revision in revenue guidance is a positive. Revise FY22/23 EPS by -5 percent/-3 percent and FY24 EPS by 1 percent.

CLSA | Rating: Buy | Target: Rs 1,900

"Expected upgrade in FY22 revenue growth guidance indicates strength of demand drivers. While we cut FY22 EPS by 2 percent, FY23/24 EPS estimates remain broadly unchanged. The company remains preferred play on growing digital spending and market share gains. It is also part of our India’s focus buy list

Bernstein| Rating: Outperform | Target: Rs 1,760

Q1FY22 saw strong revenue growth but margin was a miss. Increase our FY23 constant currency revenue/EPS estimates. Value Infosys at 28 times June 2023 EPS against 27 times earlier.

Citi | Rating: Buy | Target: Rs 1,785

Infosys reported a good Q1, revenue was a beat; EBIT and guidance raise are in-line. Increase in attrition will have implications for margin. TCV of new deals lower than recent trends, they can be volatile QoQ. Tweak EPS estimates marginally for FY22-24.

Goldman Sachs | Rating: Buy | Target: Rs 1,781

We believe the company's strategy to capture demand at the cost of margin is an apt one. Post Q1, we increase our revenue growth forecasts but cut down margin forecast and cut EPS estimates by 2-3 percent. Reiterate buy given best-in-class digital capability and seamless management execution.

JP Morgan | Rating: Buy | Target: Rs 1,770

We raise FY22-24 revenue by 1-2 percent but cut margin by 16-74 bps, leading to 0-3 percent EPS cut. The company's remains top pick in the sector, as it benefits from growth acceleration and share gains.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.