CLSA has reaffirmed its outperform rating on Infosys following a quarter that “ticked all the right boxes” operationally and financially, setting a target price of ₹1,861 per share. In its latest review, the brokerage highlights that Infosys posted revenue growth and EBIT margins above analyst projections for Q1FY26, further validating the company’s disciplined execution in a challenging business climate
For the quarter ended June 2025, Infosys reported consolidated revenue of ₹42,279 crore, up 7.5% year-on-year, and an EBIT margin of 20.8%, exceeding CLSA’s forecast of 20.3%. The performance was underpinned by successful large-deal closures—$3.8 billion in total contract value—and competitive wins in strategic client accounts, which underpin management’s confidence in improved revenue visibility. CLSA notes that, while the company narrowed its FY26 growth guidance to a 1–3% range, the outlook aligns well with street expectations and underscores management’s conservative but realistic approach to market opportunities.
The brokerage also points out that Infosys’s flexible cost structure and ability to sustain margins through cycles differentiate it from peers. With management reiterating the 20–22% margin target for the year, shareholders can expect resilient earnings delivery across quarters. Additionally, CLSA is encouraged by practical improvements in deal pipeline, new client sign-ups, and visible traction in high-growth services like cloud, engineering, and artificial intelligence. The narrative for Infosys, according to CLSA, is increasingly defined by stability, agility, and adaptability to client demands. Supported by a strong balance sheet, rising cash flows, and attractive valuations, Infosys continues to be a compelling pick for both growth-oriented and defensive portfolios in the Indian IT landscape.
