Stock surge of 4% for Infosys - Could share buyback trigger a comeback? 5 essential aspects to understand
Infosys Limited, the renowned global consulting and technology services company, has announced a proposal for a share buyback on September 11, 2025. The proposal was made by the company's Board of Directors.
The proposed buyback will be in accordance with the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended. If approved, this will be the first buyback since Infosys concluded its last repurchase program in early 2023.
The outcome of the September 11 meeting will be communicated to stock exchanges once the discussions conclude. The specific details of the proposed buyback, such as the maximum price per share, have not been disclosed at this time.
In its last buyback program, Infosys approved a buyback worth Rs 9,300 crore at a minimum price of Rs 1,850 per share. During this program, more than 50 million shares were bought back from the open market.
Infosys' share price has been under strain, slipping 3% in the past five trading sessions. However, the share price surged 4.4% in the intraday trading session in response to the announcement. Despite the recent dip, Infosys' share price is down 15% in six months and has lost 24% so far in 2025.
The company reported its first-quarter results for FY26, with a consolidated net profit of Rs 6,921 crore, up 9% year-on-year, and revenue of Rs 42,279 crore, up 8%. Free cash flow remained strong at $884 million.
Infosys also reported deal wins worth $3.8 billion for the first quarter of FY26. Over half of these wins were net new contracts. Margins for the first quarter of FY26 were at 20.8%, slightly undergoing pressure compared to the previous quarter's 21.2%.
The strong financial performance and the proposed share buyback indicate Infosys' commitment to creating value for its shareholders. The decision on the buyback will be considered by the Board of Directors of Infosys Limited. The company will continue to focus on delivering high-quality services and innovative solutions to its clients while maintaining a strong financial position.
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