Posted on April 21, 2025, by Niftynews
Infosys stock price jumped 3% in early trade on April 21, 2025, despite the IT major reporting a 12% year-on-year decline in net profit for the March quarter. The stock rose to an intraday high of ₹1,462.20 on the BSE, reflecting investor confidence in the company’s fundamentals and growth potential in key digital areas like AI and cloud services.
This surge came as a surprise to many market watchers, considering the company’s bottom-line pressure. At noon, Infosys stock price was trading at ₹1,454.30, holding on to most of its early gains.
📊 Key Financial Highlights: Infosys Q4 FY25 Results
Despite the drop in net profit, Infosys posted some key positives in its quarterly performance:
💼 Profit and Revenue
- Net Profit (YoY): ₹7,033 crore vs ₹7,969 crore (↓ 12%)
- Revenue: ₹40,925 crore vs ₹37,923 crore (↑ 8% YoY)
- Revenue in Constant Currency (CC): ↑ 4.8% YoY
- QoQ Revenue in CC Terms: ↓ 3.5%
- Operating Margin: 21% vs 20.7% in FY24
- EPS Decline: ↓ 11.8% YoY
- Free Cash Flow: ₹7,737 crore (↑ 10% YoY)
Infosys’s top line continued to grow, albeit at a slower pace, while margin expansion and improved cash flows cushioned the blow from reduced profitability.
💰 Infosys Dividend Announcement
Backed by its strong cash generation, Infosys proposed a final dividend of ₹22 per share. This reinforces the company’s long-standing policy of returning value to shareholders, even amid margin pressure and macroeconomic challenges.
📌 Infosys Stock Price: Recent Performance and Technical View
Over the last five trading sessions, Infosys stock price has gained 2.22%. However, it is still down 21.56% over the past six months, reflecting broader challenges in the IT services industry due to cautious enterprise spending and delayed deal closures.
Technical analysts suggest that the ₹1,460–₹1,480 zone may act as short-term resistance. If the stock closes above ₹1,500, a fresh breakout could take Infosys stock price toward ₹1,540–₹1,580 in the coming weeks.
🧠 What’s Driving the Infosys Stock Price Rally?
Despite the decline in net profit, several positive signals have supported the rise in Infosys stock price:
- Margin Expansion: The improvement in operating margin shows better cost management.
- Cash Flow Strength: Free cash flow rose by 10% YoY, indicating operational robustness.
- Growth in Digital & AI Segments: High-value digital services continue to lead growth.
- Dividend Payout: A ₹22 dividend reflects strong shareholder return policies.
- Positive Outlook in AI & Cloud: Infosys’s investments in future-ready technologies have improved long-term sentiment.
🎯 Management Commentary: Strategic Focus for FY26
Infosys CEO & MD Salil Parekh called FY25 a “robust” year in terms of revenue growth, margin expansion, and cash flow generation. He highlighted how Infosys is leaning into AI, automation, and cost optimization, positioning the company as a reliable partner in digital transformation.
Infosys has guided for FY26 revenue growth of 0–3% in constant currency, showing caution amid global uncertainties.
🔎 Analyst Outlook: Should You Buy, Hold, or Sell Infosys?
According to Seema Srivastava, Senior Analyst at SMC Global Securities:
“Infosys offers innovation-driven potential through its AI and R&D initiatives, but slower revenue momentum might restrict short-term upside. The long-term story, however, remains strong.”
✅ Buy if:
- You believe in long-term growth in AI, cloud, and digital transformation.
- You’re attracted by consistent dividends and a fundamentally strong balance sheet.
⏸ Hold if:
- You’re already invested and are waiting for FY26 guidance updates and order book clarity.
❌ Sell if:
- You’re a short-term trader looking to exit during minor rallies amid volatility.
🌐 Sector View: Indian IT Stocks in Focus
The broader Indian IT sector has seen mixed results this earnings season. While deal inflows remain healthy, cautious global spending, slower decision-making, and geopolitical uncertainties have weighed on earnings.
However, the focus on generative AI, automation, and digital transformation projects continues to fuel optimism in the mid-to-long term. Infosys remains one of the top picks for investors looking to ride India’s IT innovation story.
📅 Key Dates to Watch
- Record Date for Dividend: To be announced post AGM
- FY26 Q1 Earnings: July 2025
- Shareholder Meeting: Expected in Q2 FY26
- Large Deal Announcements: Monitor for new digital transformation contracts
✅ Final Thoughts on Infosys Stock Price
The Infosys stock price surge after Q4 FY25 earnings reflects market confidence in its strategic positioning and ability to generate cash, even when profits come under pressure. With a dividend payout, digital strengths, and a focus on emerging tech like AI, Infosys is well-equipped for the future.
Still, cautious FY26 guidance means short-term movement may remain volatile. Investors should weigh the upside potential against global macro risks before making a decision.
