Infosys shares plunged over 6% on Friday after weak FY27 guidance overshadowed Q4 results, making it one of the biggest losers in the IT pack.
At around 12:53 pm, Infosys shares were trading at Rs 1,166.05, down 6.16% for the day, making it one of the biggest losers in the IT pack.
The sharp fall has pushed Infosys to the top of investor conversations. Here are five things investors should know.
The biggest trigger for the sell-off was Infosys’ outlook for the current financial year. The company has guided for 1.5% to 3.5% constant-currency revenue growth for FY27, which many investors viewed as cautious.
In simple terms, the market was expecting a stronger signal that growth demand is returning. Instead, management suggested the environment remains uncertain.
Infosys reported a decent March-quarter performance on several metrics. However, markets usually focus more on what lies ahead than what has already happened.
That is why the guidance overshadowed the quarterly numbers. This is a common reaction during earnings season when investors are looking for clues about the next few quarters.
Infosys earns a significant share of revenue from clients in the US and Europe. When global companies become cautious, they often delay discretionary tech spending, slow contract decisions or cut project budgets. That appears to be happening across parts of the market right now.
This has created fresh concern around near-term growth for the IT sector.
Despite the sharp fall, several brokerages have retained constructive views on Infosys.
JM Financial maintained a BUY rating with a target price of Rs 1,500, citing healthy deal wins and more attractive valuations after the correction.
Anand Rathi retained a BUY call with a target of Rs 1,478, while Equirus Securities maintained a LONG rating with a target of Rs 1,460.
That suggests analysts still see medium-term value even as near-term sentiment remains weak.
Short-term traders may continue to see volatility until growth visibility improves. Long-term investors may view the correction differently, especially if they believe Infosys can benefit once global technology spending normalises.
Existing shareholders may prefer to review their time horizon and risk appetite rather than react only to a single day’s move.
Friday’s sharp fall shows the market is worried about growth, not questioning Infosys’ relevance. The next few quarters will decide whether this drop was a warning sign or a buying opportunity.
(Disclaimer: The views, opinions, recommendations and suggestions expressed by experts or brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any investment or trading decisions.)