India’s second-largest IT services provider, Infosys, will disclose its financial performance for Q2 FY27 on October 23 after trading concludes. Brokerages expect the company to report revenue growth of around 1.5-1.7 per cent Q-o-Q in constant currency (CC) terms, with margins likely to improve.
Brokerages said that the Street will watch for a possible revision in FY27 revenue growth guidance amid demand concerns in some segments.
Analyst Projections
Nuvama estimates Infosys’ revenue to grow +1.7 per cent Q-o-Q in CC and +1.5 per cent Q-o-Q in USD terms, including 0.5 per cent inorganic and a 0.5 per cent boost from the absence of a provision in the last quarter. Ebit may rise by 12.7 per cent Y-o-Y and 3.7 per cent Q-o-Q to ₹10,541 crore, while Ebit margin is likely to expand 40 bps Y-o-Y and 30 bps Q-o-Q to 21.4 per cent.
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Deven Choksey Research expects Infosys to report an in-line Q2FY27, with revenue of ₹49,211 crore, up 10.6 per cent Y-o-Y and 2.1 per cent Q-o-Q. USD revenue is expected at around $514.8 million, implying around 1.3 per cent CC Q-o-Q growth, which keeps FY27 at the upper end of the 1.5–3 per cent guidance range. Ebit is expected at ₹10,293.7 crore, with margin at 20.9 per cent, down 20 bps Q-o-Q due to wage revision and AI delivery investments. PAT is expected at ₹8,000 crore, up 8.5 per cent Y-o-Y, supported by stable other income of ₹1,000 crore.
Profitability and Guidance Adjustments
As per Mirae Asset Sharekhan estimates, Infosys is expected to deliver 1.5 per cent Q-o-Q CC growth, driven by a 50-60 bps contribution from Optimum acquisition. Margins are expected to improve by around 58 bps Y-o-Y and 52 bps Q-o-Q to 21.6 per cent, driven by Project Maximus and reversal of high cost base due to client termination.
Revenue in rupees is pegged at ₹49,170 crore, up 10 per cent Y-o-Y and 2 per cent Q-o-Q. The adjusted net profit could come in at ₹8,094 crore in the quarter under preview, up 9.9 per cent Y-o-Y and 4.2 per cent Q-o-Q.
