By Hamza Faisal

Infosys has posted its second-quarter FY27 results, reporting a consolidated net profit of Rs 7,823 crore for the quarter ended September 30, 2026, up 6.23% from the Rs 7,364 crore it earned in the same quarter last year. Revenue from operations rose 10.69% year-on-year to Rs 49,244 crore, up from Rs 44,490 crore in Q2 FY26. The results were announced on Friday, October 23, after market hours, and the company's board also declared an interim dividend of Rs 26 per equity share, with November 3, 2026 fixed as the record date and November 11, 2026 as the payout date.

A slight miss on Street expectations

The headline numbers landed just shy of the Street's consensus. Brokerage estimates compiled by Bloomberg had pegged net profit at roughly Rs 7,904 crore, sales at Rs 49,108 crore and operating margin at 21.2%, so profit came in slightly below expectations even as revenue edged past the consensus line. Shares of Infosys closed the day's session at Rs 1,154.50, up a modest 0.30% — a muted reaction that reflects how much attention investors had parked on the guidance rather than the quarter itself. The stock is down about 29% so far this year, one of the clearest casualties of the market's AI-disruption fears around India's IT giants.

Guidance is the number that matters

All eyes were on the full-year FY27 outlook going into the print. In the June quarter, Infosys had already lowered its constant-currency revenue growth guidance to 1.5-3%, from 1.5-3.5% earlier, while holding operating margin guidance at 20-22%. Ahead of today's announcement, brokerages including Kotak and Emkay were expecting the company to trim the revenue-growth band again, to 1.5-2.5%, citing continued macroeconomic uncertainty, elongated client decision cycles and pricing pressure from AI-led productivity gains. Infosys management was scheduled to address the guidance at a press conference following the results, with the earnings call expected to shed light on deal conversions, furlough intensity and 2027 client budgets.

Deal momentum and the AI question

The September quarter's large-deal signings were expected to land in the $2.5-3 billion range, against $3.6 billion in the June quarter, of which 61% was net new business. Investors were also watching for an update on AI-related revenue, which stood at $417 million — 8.2% of total revenue — in Q1, a figure the company has framed as evidence that its AI-first push is gaining commercial traction even as AI-driven deflation pressures traditional services pricing. The results also come as the company prepares for a leadership transition, with CEO-designate Ashiss Kumar Dash in line to take over from Salil Parekh.

By Hamza Faisal