Infosys is expected to announce its Q2FY27 earnings results on October 23. Analysts project modest revenue growth between 1.1 and 1.7 percent in constant currency terms. Many experts also expect the company to cut its FY27 growth guidance, as demand uncertainties continue to impact the IT giant’s overall business performance.
Infosys is expected to announce its Q2FY27 earnings results on October 23. The IT giant may report modest revenue growth in the September quarter, with brokerages projecting a 1.1-1.7 per cent sequential increase in CC terms, even as analysts anticipate a possible cut in its FY27 growth guidance amid continued demand uncertainties.
Revenue and PAT
According to a poll of brokerages, revenue for Q2FY27 is expected to range between ₹49,090 crore and ₹49,323 crore, marking sequential growth of 1.7-2.3 per cent. Constant-currency (CC) revenue growth is projected at 1.1-1.7 per cent quarter-on-quarter, while year-on-year growth is estimated at 10.2-10.9 per cent.
Profit after tax (PAT) is expected to range between ₹8,026 crore and ₹8,100 crore, reflecting sequential growth of 3.3-4.9 per cent and YoY growth of 9-10.7 per cent.
An Emkay Global Financial Services report noted that the company's 1.5 per cent QoQ growth in USD revenue included a 50-basis-point (bps) contribution from the Optimum acquisition, while cross-currency movements posed a 20 bps headwind.
Meanwhile, PL Capital expects Infosys' revenue to grow 1.1 per cent QoQ CC and 0.9 per cent in USD terms, aided by the easing of one-off project ramp-downs in the June quarter and a month's contribution from the Optimum acquisition.
Guidance and Margins
HDFC Securities expects Infosys to lower its FY27 YoY CC revenue growth guidance by 50 bps to 2-3 per cent, from the current 1.5 per cent - 3 per cent range
Emkay Global Financial Services also expects the company to cut its guidance to 1.5-2.5 per cent, lowering the midpoint by 25 basis points to 2 per cent. This estimate excludes the proposed Versent acquisition, which is awaiting closure.
Meanwhile, PL Capital expects Infosys' EBIT margin to improve by 40 bps sequentially, as benefits from Project Maximus and favourable currency movements are largely offset by amortisation expenses and investments in AI.
HDFC Securities expects Infosys' large-deal total contract value (TCV) to be around $2-3 billion, down from $3.6 billion in Q1.