Infosys Share Price Target Cut To Rs 1,650 by Emkay After Q4 Miss

Infosys, a global leader in consulting, technology, and outsourcing solutions, faced a challenging fourth quarter. It reported a revenue decline of 4.2% QoQ (3.5% in constant currency terms), totaling USD 4.7 billion.

Emkay's latest analysis maintains a positive outlook with a "Buy" rating, accompanied by a revised price target of Rs 1,650.

Revenue and Margin Analysis
The decline in revenue was attributed primarily to lower pass-through revenue and seasonal volume drops, disappointing market expectations. Despite this, Infosys managed to maintain an EBITM (Earnings Before Interest, Taxes, and Margin) of 21%, slightly exceeding analyst forecasts. Factors contributing to margin contraction included wage hikes and acquisition-related costs, partially offset by operational efficiencies and currency gains.

Strategic Insights and Guidance for FY26
Infosys projects a conservative 0-3% revenue growth in constant currency for FY26, reflecting heightened client caution amidst uncertain macroeconomic conditions. The company's management anticipates challenges but remains optimistic, aiming for an EBITM range of 20-22% with a focus on margin improvement initiatives.

Sectoral Performance and Client Dynamics
Across verticals, Infosys noted varied performance with resilience in BFSI (Banking, Financial Services, and Insurance) and challenges in sectors like Retail and Manufacturing due to economic uncertainties and tariff impacts. The company highlighted steady growth in capital markets and ongoing digital transformation initiatives across industries.

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Key Takeaways from the Earnings Call
During the earnings call, Infosys executives discussed client behavior shifts influenced by recent tariff announcements and cautious decision-making in certain segments. The company plans to navigate these challenges by focusing on cost efficiencies, infrastructure transformation, and ERP modernisation programs.

Acquisitions and Strategic Investments
Infosys announced acquisitions of MRE Consulting and The Missing Link, enhancing capabilities in energy sector risk management and cybersecurity respectively. These acquisitions are poised to strengthen Infosys' market position and expand its service offerings in critical growth areas.


Despite the Q4 revenue miss and cautious client sentiment, Emkay's endorsement of a "Buy" rating underscores confidence in Infosys' long-term strategy and resilience. Investors are advised to monitor ongoing economic developments and Infosys' strategic responses as they navigate through fiscal year 2026.

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