Infosys shares dropped 5.3% in two sessions, wiping ₹25,000 crore from market cap. The stock now trades ₹1,118.2, a 3.8% slide from the prior close, after the company trimmed its FY27 constant‑currency revenue growth guidance to 1‑2%.
The fall makes Infosys the top loser on the Nifty IT index, which fell 3.6% as all 10 constituent stocks slipped between 1% and 5%. The decline came amid a rally in global AI‑driven hardware stocks, sparked by SK Hynix’s record revenue and operating profit, which lifted the KOSPI and buoyed Indian software names.
In its Q2 earnings, Infosys posted 1.2% revenue growth—below the 1.4% consensus—and a 21% EBIT margin, slightly under the 21.3% estimate. The company’s guidance cut, announced after the results, now expects constant‑currency revenue expansion of 1‑2% versus the earlier 1.5‑3% range.
CEO Salil Parekh told CNBC‑TV18 that AI is driving a healthy deal pipeline and robust free cash flow, but that competitive pricing and softer volumes have pressured margins. He added that Infosys remains a preferred AI partner for top clients and that its EBIT margin guidance of 20‑22% will be maintained.
Analysts warn that wage hikes could squeeze margins in H2 FY27, a risk the firm plans to offset through Project Maximus. Market watchers will monitor the next quarterly report on May 26, 2027, to gauge whether the guidance adjustment reflects a more cautious outlook for the IT services sector.