Infosys dividend, Q4 results on April 23; FY27 guidance, deal wins, target prices & more

The Salil Parekh-led Infosys Ltd is set to declare its March quarter results and final dividend for FY27 on April 23. The Bengaluru-based IT firm is expected to report a double digit growth in net profit and a similar growth in net sales. All eyes would be on the FY27 guidance on revenue and margins; and the management commentary regarding the impact of Iran war and GenAI deflation on growth prospects, analysts said. 

JM Financial expects, which has a target of Rs 1,525 on Infosys, expects the IT major to guide for 2-4 per cent constant currency (CC) revenue growth for FY27, based on its Q4 expectation. Infosys had indicated earlier that financial services and  Energy, Utilities, Resources and Services (EURS), which account for 40 per cent of the revenue portfolio, will likely do better in FY27 against FY26. 

JM expects FY27 margin guidance of 20-22 per cent. This brokerage expects Infosys to report 10.1 per cent YoY rise in net profit at Rs 7,745.90 crore for the March quarter on 14 per cent YoY rise in net sales at Rs 46,673 crore. It sees flat dollar revenue sequentially with a 50 basis points CC impact, leading to edgrowth of 0.5 per cent QoQ CC revenue growth in Q4.

"The quarter will see seasonal weakness on account of lower working days Deal wins are expected to be healthy – in line with the usual trends. Run rate for bookings expected to be $2.5-3 billion," it said.

Kotak Institutional Equities expect Infosys to guide for 3-5 per cent revenue growth for FY2027. This brokerage is baking in 75 basis points from Versent acquisition into the guidance, noting that management expected the deal to close by the end of the fiscal year. It expects investor focus on the impact of Iran war and GenAI deflation on growth prospects, change in decision-making pace of clients due to rapid improvement in agentic capabilities, willingness to take up large transformation programs that are margin dilutive initially. 

It said investors would  also focus on the percentage of programs that have moved from PoC to production, and incremental benefits that can accrue from Project Maximus.

Kotak sees adjusted net profit at Rs 7,459 crore, up 13 per cent. Revenue is seen at Rs 46,844 crore, up 14.5 per cent.

HDFC Institutional Equities, which valued Infosys at Rs 1,600 per share, also sees 2-4 per cent revenue growth while the margin band is expected to be maintained at 20-22 per cent. This brokerage sees net profit at Rs 7,610 crore and net sales at Rs 46,699 crore.  

MOFSL said Infosys may clock 0.7 per cent sequential decline in CC revenue growth in Q4, near the top end of the guidance. It said the US BFSI is expected to remain resilient, with some pockets of discretionary spend. Manufacturing remains impacted by tariff uncertainty and delaying decisions, while the Middle East remains weak due to war-related uncertainty, it said.

"Operating margin is expected to remain flat despite performance bonus payouts and visa cost impact, as Maximus cost initiatives and improving RPE should help
offset the pressure," it said while suggesting a target of Rs 1,500 on the stock.