Stocks of Infosys witness a 3% surge in value preceding a board meeting where the topic of share buyback deliberation is on the agenda
Infosys Announces Share Buyback Plan, Boosting Stock Price
Infosys, one of India's leading IT companies, has announced a planned share buyback program valued at 180 billion Indian Rupees (approximately 2.04 billion USD). This announcement, made on August 10, 2025, has caused a significant surge in the company's share price.
The share price opened at Rs 1,481 and reached as high as Rs 1,485, marking a 3.4% increase and settling at Rs 1,484.20 by the end of the trading day. This surge was accompanied by substantial trading volumes, with trading at nearly three times the 30-day average.
The upcoming board meeting on September 11, 2025, could be decisive for the near-term momentum of Infosys stock. If approved, it would be the first buyback since December 2022.
Analysts believe the timing of this buyback is significant, as the stock is down 24% year-to-date and about 28% below its peak. Global brokerage Morgan Stanley estimates the potential buyback size at 1.3-2% of total equity.
Infosys' recent financial performance has been steady, despite global economic challenges. For the June 2025 quarter, the company registered a net profit of Rs 6,921 crore, up 8.7% year-on-year. Its revenue for the same quarter increased by 7.5% to Rs 42,279 crore.
The proposed buyback would be Infosys' sixth. The company had carried out a Rs 9,300 crore buyback in 2022 at a floor price of Rs 1,850 per share.
Infosys was helped by the strength of its peers, such as Wipro, TCS, and others. This boost in the Nifty IT Index has made Infosys the top gainer.
G Chokkalingam of Equinomics Research believes Infosys is choosing to reward shareholders instead of pursuing large acquisitions. The company currently has over Rs 40,000 crore in cash, providing it with the financial means to execute such a buyback.
Infosys has also raised its FY26 revenue growth outlook to 1-3% in constant currency, while keeping operating margins at 20-22%. This indicates the company's confidence in its future growth prospects.
The stock of Infosys is trading at a forward P/E of 20.8x, which is below its five-year average of 24.8x and lower than the Nifty IT index's multiple of 23.7x. This could suggest that the market is undervaluing Infosys, making it an attractive investment opportunity.
In conclusion, Infosys' announcement of a planned share buyback has boosted its stock price and generated optimism among investors. The upcoming board meeting on September 11, 2025, will be crucial in determining the near-term direction of Infosys stock.
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