Infosys shares fell nearly 3 percent on Monday, emerging among the top losers on the Nifty 50, after the IT services major reported weaker-than-expected fiscal second quarter earnings and lowered its FY27 revenue growth guidance. Brokerages UBS and HSBC offered contrasting outlooks, with UBS projecting a 23 percent upside and HSBC flagging risks to margins and revenue growth.
Infosys stock declined 2.8 percent to Rs 1,122 in morning trade, extending its year-to-date losses to 31 percent, compared with a 14.3 percent decline in the Nifty 50. The company's market capitalisation stood at approximately Rs 4.5 lakh crore.
The decline came amid broader selling in IT stocks, with the Nifty IT index falling 1.3 percent. At 9:25 am, the Sensex was down 534.07 points, or 0.73 percent, at 72,589.76, while the Nifty declined 194.40 points, or 0.86 percent, to 22,405.60.
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UBS maintained its Buy rating on Infosys with a target price of Rs 1,415 per share, implying approximately 23 percent upside from Friday's closing price of Rs 1,153.80. The brokerage said that Infosys' revenue grew 1.2 percent sequentially in constant currency terms, below its estimate of 1.5 percent and the consensus forecast of 1.8 percent. Operating margin slipped 10 basis points to 21 percent, while earnings per share of Rs 19.3 were also below estimates.