Infosys Q1 Earnings Preview: Should Investors Brace For A Bounce Or Brace For Impact?

Infosys Ltd, India’s second-largest IT services provider, is scheduled to release its Q1 FY2026 earnings on Wednesday, July 23, after market hours.

As per a regulatory filing, the company’s Board of Directors will meet on July 22 and 23 to review and approve the audited financial results for the quarter ended June 30, 2025, under IND-AS and IFRS standards.

Infosys Q1 Results 2026 Preview
According to Bloomberg estimates, Infosys is expected to report a 2% quarter-on-quarter (QoQ) rise in consolidated revenue at Rs 41,724 crore, compared to Rs 40,925 crore in the previous quarter. EBIT is also seen growing 2% sequentially to ₹8,727 crore from ₹8,575 crore.

Despite the growth, EBIT margin is projected to remain largely stable at 20.91%, slightly below the 20.95% margin reported in Q4 FY2025.

Analysts believe that while Infosys may not significantly raise the upper end of its full-year revenue guidance, the company could tighten the lower band of its 0–3% revenue growth forecast due to stabilising macroeconomic conditions and steady deal inflows.

Market Sentiment & Technical Indicators Remain Cautious
A report by Emkay paints a cautious technical outlook for Infosys stock ahead of the earnings announcement. It notes:

“Immediate trend is negative. It will remain under pressure below 1610. Downside potential up to 1520 and 1470.”

The report highlights short build-up trends in Infosys shares, citing a 35.5% rise in open interest (OI) coupled with a 2.8% price drop since the beginning of the expiry.

Current OI of $1399 million is above its 1-year mean by over +3.09 standard deviations, signalling bearish sentiment. A further short build-up was observed with a 3% rise in OI and 1% fall in price in a single day.

Additionally, the volatility spread vis-à-vis NIFTY is “slightly cheap” compared to historical norms, at 15.3 IV versus a 17.4 average one day before the results.

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Derivatives Data Shows Pressure at 1600 Strike
Options data indicates the highest call and put open interest at the 1600 strike, with a call addition of 1,637 lots and put addition of 392 lots at the 1560 strike. This signals a tight trading range and limited near-term upside ahead of the earnings release.

Infosys Q1 Results FY25
Infosys clarified in its exchange filing: “The Board of Directors of the Company will be held on Tuesday and Wednesday, July 22 and 23, 2025 inter alia to:
Approve and take on record the audited consolidated and standalone financial results as per Indian Accounting Standards (INDAS);
Approve the audited financial statements under INDAS and IFRS for the quarter ending June 30, 2025.”
With subdued expectations and a muted technical setup, investor focus will be squarely on Infosys’ FY26 commentary—particularly around deal wins, digital transformation demand, and guidance tightening.

 

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