Bengaluru-based IT giant Infosys is gearing up to announce its second-quarter (Q2) results for the financial year 2027 on Friday, October 23. The company is expected to release its earnings around 3:45 PM Indian Standard Time (IST), with a subsequent press conference scheduled for 4:30 PM IST.
Analysts Project Lower Revenue Guidance
Market analysts are closely watching Infosys's upcoming announcement, particularly regarding its revenue growth guidance. Emkay Global anticipates Infosys will lower its constant currency (CC) revenue growth guidance for FY27 to 1.5–2.5 per cent year-on-year (YoY), down from the previous 1.5-3 per cent. This adjustment implies a 25 basis points reduction at the midpoint, bringing it to 2 per cent, excluding the Versent acquisition.
Consensus estimates compiled by Bloomberg project Infosys to report a net profit of Rs 7,904 crore, net sales of Rs 49,108 crore, and an operating margin of 21.2 per cent for the September quarter.
Key Expectations from Brokerages:
- Emkay Global: Predicts Q2 net profit to rise 9 per cent YoY to Rs 8,026.70 crore on a 10.9 per cent YoY increase in sales to Rs 49,323 crore. They expect 1.5 per cent quarter-on-quarter (QoQ) dollar revenue growth, factoring in contributions from the Optimum acquisition and cross-currency headwinds. EBIT margin is also expected to expand by 50 bps sequentially.
- Kotak Institutional Equities: Forecasts a 4.4 per cent YoY rise in Q2 profit to Rs 7,689 crore. Kotak anticipates organic CC revenue growth of 1.1 per cent, noting that 50 bps of this growth is due to the reversal of a previous headwind. They highlight that underlying organic growth remains modest due to AI-led deflation and a weak demand environment.
- HDFC Institutional Equities: Projects Infosys's Q2 profit at Rs 8,038 crore and sales at Rs 49,090 crore. They expect deal wins to be in the $2-3 billion range.
Interim Dividend and Leadership Transition in Focus
Beyond the financial figures, the Infosys board will also consider the declaration of an interim dividend during its meeting. Investors and analysts will pay close attention to the company's FY27 guidance, the outlook for mega-deal renewals, and any commentary from CEO-designate Ashiss Kumar Dash, as the Bengaluru-based firm navigates a significant leadership transition.
Management commentary on the demand outlook, furlough intensity, client budgets for 2027, the deflationary impact of AI, and large-deal conversion rates will be closely monitored. Margin guidance is generally expected to remain stable, supported by factors like currency tailwinds, staggered wage hikes, and higher utilization rates.
Ahead of the earnings call, Infosys holds a consensus 12-month target price of Rs 1,186, suggesting limited upside potential from recent trading prices.