Infosys Proposes Buyback Plan, Boosting Indian IT Shares

Indian shares rise, led by IT sector on Infosys buyback proposal. Infosys Limited is an information services company offering consulting, systems integration, business IT services, products, and solutions. Net sales break down by market, with finance accounting for 27.4%. Geographically, net sales are distributed between India, North America, Europe, and other regions.

Title: Indian Shares Rise, Led by IT Sector on Infosys Buyback Proposal

Indian equity benchmarks opened higher on Tuesday, September 9, 2025, with the Nifty 50 and BSE Sensex indexes rising by 0.4% each. The positive movement was driven by rising expectations of a U.S. interest rate cut and the announcement of a share buyback proposal by Infosys Limited.

Infosys Limited, one of India's leading IT services companies, is scheduled to consider a proposal for the buyback of its equity shares at a board meeting on September 11, 2025. This move comes after a significant underperformance by Infosys shares, which have fallen nearly 25% in the past year and 24% year-to-date. Despite the stock's decline, Infosys reported a 9% year-on-year (YoY) growth in consolidated net profit for the first quarter ended June 2025, with revenue rising 8% YoY [1].

The buyback proposal is seen as a strategic initiative aimed at boosting investor confidence and returning value to shareholders amid a challenging business environment. The IT sector has been struggling under the weight of global economic uncertainty and reduced enterprise tech spending. The Nifty IT index has fallen 19% over the past year, mirroring the broader downturn in the sector [2].

Infosys' performance in the first quarter of FY26 was mixed. The company reported a 9% YoY increase in consolidated net profit at Rs 6,921 crore and an 8% YoY growth in revenue from operations to Rs 42,279 crore. However, the operating margin for the April-June quarter stood at 20.8%, a decline of 0.3% YoY and 0.2% quarter-on-quarter (QoQ) [2].

The company's segment-wise performance was as follows: financial services grew 5.6% YoY, manufacturing led with a 12.2% increase, retail remained flat at 0.4%, and hi-tech business rose by a modest 1.7%. Infosys also reported total deal wins worth $3.8 billion in the quarter, of which 55% were net new [2].

Infosys shares gained 2.87% to trade at Rs 1,474.00 in Tuesday's session, led by the buyback proposal. The company's consistent financial performance over the past year has been notable, with consolidated quarterly revenue increasing from Rs 39,315.00 crore in June 2024 to Rs 42,279.00 crore in June 2025, and net profit rising from Rs 6,374.00 crore to Rs 6,924.00 crore over the same period [3].

The buyback proposal is expected to boost Infosys' shareholder value and investor confidence. The company's board will consider the proposal on September 11, 2025, which could potentially lead to a significant increase in share prices if approved.

References:
[1] https://m.economictimes.com/markets/stocks/news/infosys-to-consider-share-buyback-proposal-on-thursday/articleshow/123767407.cms
[2] https://economictimes.indiatimes.com/markets/stocks/news/infosys-shares-in-focus-as-board-to-consider-buyback-proposal-in-upcoming-board-meeting/articleshow/123776792.cms
[3] https://www.tradingview.com/news/moneycontrol:6fd5b885f094b:0-infosys-shares-rise-2-87-in-early-trade-on-tuesday/