Why Infosys’ Share Price is Rising?

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Infosys Share Price: one of India’s largest IT services companies, has seen its price continuously rising over the past month. The stock rose 0.74% in today’s trade and is up 2.80%, or 41.30 points. The traded volume for Infosys shares was 76.69 lakh, with the company’s market cap at ₹1,624.40 crore. The shares have their 52-week high of ₹2,006.45 and their 52-week low of ₹1,307.00. The stock gains from Infosys’s performance in both revenue generation and profitability. This status not only influences index calculations but also attracts considerable attention from institutional investors and fund managers who closely track benchmark indices.   

Short-term performance shows a more balanced scenario. Over one month, Infosys posted a 1.02% increase, slightly ahead of the Sensex’s 0.72% rise. However, over three months, Infosys’ 0.72% gain is behind the Sensex’s 4.99% advance. The company has demonstrated strong long-term fundamentals, with a 30% CAGR in operating profits and consistent positive results over the last five quarters, which are likely to increase Infosys’s share price. Infosys’ cumulative return stands at 38.36% while the Sensex has risen by 91.64%. 

Key Reasons for the Rise in the Infosys Share Price?

There are several reasons for the rise in the Infosys share price, including the buyback announcement, high capex, improved Q2 results, strong positioning with Topaz AI, attractive valuations relative to long-term averages, and rising demand visibility.  

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• Buyback Announcement: The Board of Directors met on 11th September 2025 to consider a proposal to buy back fully paid-up equity shares. Although the exact size of the buyback has not yet been disclosed, the Infosys share price has risen for these reasons.  
• High Capex: Enterprises worldwide are transforming from hardware-heavy investments to services-led tech spending, especially in AI and modernisation programs. This benefits Infosys greatly because of its highly discretionary, heavy portfolio. 
• Q2 Results Improvement: Infosys reported a consolidated net profit of ₹7,364 crores in Q2FY26, marking a 13.2% year-on-year rise, supported by steady growth in large deal wins. Revenue stood at 8.6% YoY to ₹44,490 crore, while the operating margin is 21%. 
• Strong positioning with Topaz AI and other services: Infosys maintains a strong position with its full-stack application modernisation capabilities and is expected to regain long-term importance, which could drive a rise in the Infosys share price in the near future. 
• Attractive valuations for long-term averages: At recent levels, Infosys is trading close to its 10-year average P/E multiple and at a 13% discount to its five-year average. This can lead to improved positioning of Infosys shares in the very near future. These reasons are essential for long-term growth and stability for investors willing to invest in Infosys shares. 
• Rising demand visibility: Infosys has raised the lower end of its growth guidance in both quarters of the first half of FY26. This indicates a steady demand environment and confidence in project pipelines. Additionally, it may improve the quality of revenue as the Infosys share price rises.  

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Infosys: An Overview

Infosys Ltd provides consulting, technology, outsourcing and next-generation digital services to enable clients to execute strategies for their digital transformation. It is the 2nd largest Information Technology company in India, behind TCS. Infosys is a global leader in next-generation digital services and consulting. Infosys has grown into a multinational corporation with operations in 59 countries and over 331,000 employees. It offers a wide range of IT services, including software development, business consulting, and outsourcing, as well as digital transformation solutions powered by AI and cloud technologies. 

The total revenue of Infosys is approximately ₹166,590 crores, with operating income of ₹37,608 crores and net income of ₹26,750 crores. The total assets of Infosys are ₹148,903 crores. In 2015, Infosys launched the $500 million Infosys Innovation Fund to invest in early-stage startups focused on emerging and deep tech, including a $250 million allocation for Indian startups. 

Infosys: Performance Analysis

Revenues have been growing, with 8.6% year-on-year growth in the recent quarter, but the average annual revenue growth over the past five years has been around 7.9%. The net sales for the FY23,FY24, and FY25 are 1,467,670, 1,536,700, 1,629,900. For Q2 FY26, Infosys’ reported numbers are much better than its peers. Revenues grew to ₹444,900 million (m), up 8% YoY. The net profits were ₹73,750 m, a 13.2% increase year-on-year. The P/B ratio for Infosys is 6.25; the P/E ratio for this sector is 25.67. Infosys has an Earnings Per Share (EPS) of 67.78. If Infosys Technologies Limited takes out the full calculated possible swing range, there will be an estimated 27.22% move between the lowest and the highest trading price during the day. The 52-week High of ₹1,553.30, and 52-week Low of ₹1,532.10. 

Infosys: Share Price Target

 Infosys’s share price target for the coming year is ₹ 1,639.18. The consensus estimate represents an upside of 5.75% from the last price of 1550. According to Wall Street analysts, the average 1-year price target for Infosys is ₹1,672.9, with a low forecast of ₹1,394.81 and a high forecast of ₹2,079, based on Infosys’s recent movement predictions and projections. The price is below an essential level of ₹2,021 on the charts, and if it remains below this level, the stock might decline in the short term. The Infosys share price target for 2026 is ₹1,643.20 with the minimum estimate of ₹1,381 and a maximum estimate of ₹1,980.00. According to projections from 44 analysts, the average 12-month price target for Infosys is ₹1717.35, with a high estimate of ₹2,150 and a low estimate of  ₹1,470. 

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Is Infosys a Good Stock to Buy?

Infosys has several clear advantages that deliver solid returns and sustain growth, including a strong brand and reputation, diversified client base, deep technical expertise, and financial health with a global presence. 

• Strong Brand and Reputation: Infosys mostly enjoys a globally recognised brand with a reputation for transparency, integrity, and high-quality delivery. This enhances long-term trust with clients and investors, thereby fostering a competitive environment. 
• Diversify clients: Infosys serves clients across multiple sectors, including finance, healthcare, retail, manufacturing, and education, in over 40 countries. This diversification may reduce sector-specific risks and create multiple revenue streams. 
• Deep technical expertise: Infosys has vast capabilities in cloud computing, AI, data analytics, blockchain, cybersecurity, and IT consulting. Its skilled workforce enables the delivery of customised solutions and the successful implementation of large-scale projects. 
• Financial Health with Global presence: Infosys’ revenues are steadily increasing, and healthy cash flows support strategic acquisitions and expansions, enabling rapid entry into new markets and an expanding geographic footprint. It helps investors choose Infosys shares for the long term. 

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Infosys: Future Predictions By Analysts

According to some analysts and statistical models, if current market and earnings trends persist, the projected average share price by mid-year could be around ₹1,283.69. In contrast, the average share price by year-end could reach approximately ₹1,913.48. These figures are indicative and may shift with changes in interest rates, product sales, or broader equity-market sentiment. Infosys is forecast to grow earnings and revenue by 5.4% and 5%, respectively, per annum. EPS is expected to grow by 5.9% per annum. Return on equity is forecast to be 29.4% in the next 3 years.

Infosys: Analysts’ Rating

• The average 12-month price target is ₹1,639.00, and the consensus rating is Hold (mix of Buy, Hold, & Sell). 
• The analyst’s target range is between a high of ₹1,700 and a low of ₹1,610.00. 
• According to some analysts, some concerns remain with a ‘Reduce’ call of ₹1,610.20. 
• The analyst’s sentiment is mixed; there have been recent bullish calls (ICICI, JM), but also cautious ones (Motilal Oswal, Nuvama). 

What is the Right Time to Buy Infosys’s Shares? 

According to analysts, Infosys’s share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in Infosys. There are some factors to consider before investing in Infosys Company shares.

• Strong Fundamentals: Investors should review Infosys’ fundamentals before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it.    
• Financing Partnerships: Financing partnerships bridge the gap between customers and financial institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.   
• Growth in the Technical Sector: The company is well-positioned in the electronic demat sector to deliver benefits to Infosys. This dominant sector increases demand and prices for Infosys.
• Highly Volatile: Prices are highly volatile, leading to significant price changes that have a substantial impact on Infosys Company’s stock price. Investors must review the market structure before investing in Infosys Company shares.

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Conclusion

For investors and traders, the active call option market in Infosys highlights a focus on near-term price movements with a movement towards bullish expectations. The sudden price change affects the majority of call option traders, suggesting a forecast of price recovery or upward momentum in the immediate term. However, the narrow trading range and recent price decline after two days of gains indicate that the market remains cautious, balancing optimism with uncertainty. The data reveal a position of potential upside while navigating a period of limited price movements. As expiry approaches, the interplay between option market activity and underlying stock performance will be critical to watch for indications of future trends. 

FAQs

What are the key reasons for the decline in the Infosys share price?

Ans. There are several reasons for the rise in the Infosys share price, including the buyback announcement, high capex, improved Q2 results, strong positioning with Topaz AI, attractive valuations relative to long-term averages, and rising demand visibility. Infosys maintains a strong position with its full-stack application modernisation capabilities and is expected to regain long-term importance, which could drive the Infosys share price higher in the near future.

What is the improvement in the Infosys Q2 results?

Ans. Infosys reported a consolidated net profit of ₹7,364 crores in Q2FY26, which marks a 13.2% year-on-year rise, supported by steady growth in large deal wins. Revenue stood at approximately 8.6% YoY to ₹44,490 crores, while the operating margin was 21.00%. In constant currency terms, revenue grew at 2.9%. The company also declared an interim dividend of ₹23 per share. 

What is the Infosys share price target?

Ans. Infosys’s share price target for the coming year is ₹ 1,639.18. The consensus estimate represents an upside of 5.75% from the last price of 1550. According to Wall Street analysts, the average 1-year price target for Infosys is ₹1,672.9, with a low forecast of ₹1,394.81 and a high forecast of ₹2,079, based on Infosys’s recent movement predictions and projections.

What is Infosys’ growth in future?

Ans. Infosys is forecast to grow earnings and revenue by 5.4% and 5%, respectively, per annum. EPS is expected to grow by 5.9% per annum. The return on equity is forecast to be 29.4% over the next 3 years. Factors that support the long-term investment include a virtually debt-free balance sheet, with high ROE, and other free cash flows.