26-Oct-2026 08:07:35
GS on Infosys ; Neutral, TP Rs 1000
Largely in line 2QFY27, with key highlights being: (i) Second consecutive quarter of guidance cut, with the mid-point now implying a modest negative FY27 organic revenue growth; (ii) Strong deal wins in 2Q driven by one mega deal, which should partly cushion the revenue headwind in FY28 from exit of a manufacturing client (iii) Demand environment remains sluggish, with a few client-specific ramp downs, subdued volume growth and shift in spend priorities by clients, per management (iv) Margins remain range-bound, which Infosys attributed partly to pricing pressure due to elevated competition (v) While Infosys mentioned that productivity ask by clients is high due to AI, the company believes this deflation is a one-time exercise.
INFOSYS LIMITED