Infosys share buyback: What should investors do ahead of November 14 record date?

Shares of Infosys, India’s second-largest IT services company, are likely to remain in focus this week as the record date for its share buyback — Friday, November 14 — draws near. The buyback proposal, recently put to vote, received an overwhelming 98.81% approval from shareholders.

This is the company’s second such proposal since 2022 and its biggest in history. Its board had approved the proposal on September 11. Prior to this, Infosys had conducted a Rs 9,300 crore buyback in 2022.

The buyback will comprise 10 crore shares at Rs 1,800 apiece, accounting for 2.41% of the company’s paid-up share capital.


Infosys shares extended their gains on Monday, rising 2.6% on the NSE to close at Rs 1,515, marking their second straight session of gains. The rally came on the back of strong trading activity, with around 98 lakh shares changing hands near the closing bell.

The two-session rally has lifted Infosys’ share price above its September 11 closing level of Rs 1,512.20, the day the company announced its share buyback. The shares had slipped 3% before the reversal.

What should investors do?

Nilesh Jain, Head Vice President, Equity Research Technical and Derivatives at Centrum Broking, said that Infosys shares are poised to hit targets of Rs 1,550-1,600 from a short-term perspective. While placing a support at Rs 1,450, Jain recommends buying Infosys shares to take advantage of the buyback offer. "Historically, we have seen the stock reacting positively ahead of buybacks," he added.

Anuj Gupta, Director at Ya Wealth Global Research also see this as a good opportunity for investors to make short term gains. With record date set on November 14, existing shareholders will need to hold Infosys shares on the record date to be eligible to participate in the buyback, Gupta said.

The stock has seen a 16% erosion in its share price over the past 12 months, underperforming not just the sector but also benchmarks Nifty and Sensex.

Nifty IT index has declined 15% over a 1-year period while the benchmarks have yielded near 6% and 5% positive returns in the same period.

The software exporter reported a 13% year-on-year (YoY) growth in its net profit at Rs 7,364 crore for the second quarter of FY26. Revenue from operations rose 9% to Rs 44,490 crore.

The IT major has revised lower end of its FY26 revenue guidance upwards to 2-3% as against 1-3% earlier. Meanwhile, margin estimate for the year was retained at 20-22%.

For the September quarter, revenues in constant currency terms grew by 2.9% YoY and 2.2% QoQ. Operating margins, on the other hand, saw a decline of 10 bps YoY to 21%.

Gross profit in the second quarter improved 9% YoY to Rs 13,690 crore.

The company clocked $3.1 billion in deal wins with 67% net new in Q2.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)