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Infosys cuts FY27 guidance; Zetwerk's muted market debut
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Infosys has lowered its FY27 revenue guidance despite a rise in Q2 profit. This and more in today’s ETtech Top 5.
Also in the letter:
■ PHP security flaws
■ Instamart vs Blinkit
■ Tata’s Apple bet
Infosys CEO Salil Parekh
IT services major Infosys on Friday reported 6% year-on-year (YoY) growth in consolidated net profit to Rs 7,823 crore in the second quarter of FY27. The same stood at Rs 7,364 crore in Q2FY26.
Financials:
Deal wins: Total contract value of large deals stood at $5.2 billion, with new business accounting for 62% of the total. The bookings included a mega deal valued at more than $2 billion.
AI push: Infosys reported a 29% sequential increase in revenue from artificial intelligence services, which accounted for 10.5% of its total revenue during the quarter.
Other details: The company reported free cash flow of Rs 8,898 crore during the quarter, down 8.1% YoY. Its consolidated cash and investments stood at Rs 45,232 crore at the end of September.
Also Read: Infosys dividend alert! IT major announces Rs 26 per share dividend. Check record date
(L-R) Zetwerk cofounders Srinath Ramakkrushnan and Amrit Acharya
Shares of Zetwerk Manufacturing Business listed at a 5% premium over its IPO price on Friday. The stock opened at Rs 159 on the BSE and NSE, against the issue price of Rs 151. The stock closed at Rs 138.30, down 13.02% from their opening price and 8.41% below the IPO issue price.
IPO details: The Rs 5,012.33 crore IPO comprises a fresh issue of Rs 2,830 crore and an offer for sale (OFS) worth about Rs 2,182 crore.
Subscription snapshot:
Zetwerk cofounder Amrit Acharya
Zetwerk aims to tap demand for components and equipment used in artificial intelligence (AI) infrastructure, clean energy, and space projects through its network of factories and suppliers, cofounder and chief executive Amrit Acharya said on Friday.
Use of funds: Zetwerk will use Rs 2,160 crore, or 76% of the fresh issue, to repay borrowings of the parent and nine subsidiaries. The balance, before issue expenses, is earmarked for acquisitions and general corporate purposes.
Manufacturing push: The company's 26 plants accounted for 33.2% of manufacturing revenues in FY26, compared with 7.1% two years earlier.
Indian organisations are scrambling to secure their systems after two critical vulnerabilities in PHP — the programming language powering 70% of the web — sparked a global cybersecurity panic.
What happened: The two vulnerabilities are rated 9.2 out of 10 on the CVSS v4.0 severity scale. Cert-EU, the European Union's cybersecurity response team, said that the rating signals unauthenticated remote code execution, meaning an attacker can run commands on a vulnerable server over the internet, without a password or account.
Response: Indian organisations are fast-tracking emergency response plans, pulling vulnerable applications offline, scanning websites for breaches, and demanding urgent patches from their tech vendors, officials and industry executives said.
The scale: More than 22.6 million internet-exposed instances worldwide could be vulnerable, according to Palo Alto Networks’ threat intelligence team.
(L-R) Eternal CEO Albinder Dhindsa and Swiggy CEO Sriharsha Majety
The July-September results of food and grocery delivery giants Eternal and Swiggy point to diverging strategies in their quick commerce businesses even as competition intensifies. While Blinkit is not looking to significantly expand its private label foray, rival Instamart sees room to grow its year-old brand Noice.
Instamart’s bet: Noice offers 400 products across 20 categories like snacks, groceries, dry fruits, beverages, and more. The company said in its September earnings report that one in eight orders now contain a Noice product. Instamart also launched Nectr recently, for fresh fruits and vegetables. The company said that one in six of their Bengaluru customers bought a Nectr product.
Blinkit’s approach: Eternal CEO Albinder Dhindsa stated that Blinkit aims to play to its strengths rather than becoming "both the platform and a competitor" to brand partners listed on its marketplace. Blinkit, however, sees potential for this in the fresh foods category through its Hyperpure business. The company has a private label play under its foods brand.
Eternal and Swiggy's Q2 results: Blinkit outpaced Instamart on growth, scale and profitability in the September quarter of 2027. Blinkit’s net order value (NOV) rose 79.3% on-year to Rs 20,940 crore, more than three times Instamart’s Rs 6,553 crore, which grew 33.3%.
Also Read: Swiggy CEO Sriharsha Majety says rival Blinkit has the stronger flywheel, aims to fix basics before expanding
Tata Electronics is looking to scale up its manufacturing beyond iPhone casings, targeting more advanced components such as glass-based enclosures and specialised metal parts, people in the know told us.
Moving up the chain: The company is seeking to climb the value chain and garner a larger piece of the Apple pie in India, an industry source said. Neil Shah of Counterpoint Research explained that advanced components could offer better margins than basic manufacturing and assembly.
Why it matters: India reportedly assembles a quarter of the world’s iPhones, and clocked a record $13.2 billion in iPhone exports in the first five months of this fiscal year.
Also in the letter:
■ PHP security flaws
■ Instamart vs Blinkit
■ Tata’s Apple bet
Infosys Q2 Results: Profit rises 6% to Rs 7,823 crore; revenue guidance lowered
IT services major Infosys on Friday reported 6% year-on-year (YoY) growth in consolidated net profit to Rs 7,823 crore in the second quarter of FY27. The same stood at Rs 7,364 crore in Q2FY26.
Financials:
- Revenue: Revenue from operations grew 11% YoY to Rs 49,244 crore.
- Sequential growth: Net profit increased 0.7% quarter-on-quarter (QoQ) to Rs 7,823 crore, while revenue grew 2%.
- Operating profit: Up 10.4% YoY to Rs 10,330 crore from Rs 9,353 crore.
- Margins: Operating margin stood at 21%, unchanged YoY. It was 21.1% in the June quarter.
- Growth guidance: The company trimmed its FY27 revenue guidance to 1-2% in constant currency.
Deal wins: Total contract value of large deals stood at $5.2 billion, with new business accounting for 62% of the total. The bookings included a mega deal valued at more than $2 billion.
AI push: Infosys reported a 29% sequential increase in revenue from artificial intelligence services, which accounted for 10.5% of its total revenue during the quarter.
Other details: The company reported free cash flow of Rs 8,898 crore during the quarter, down 8.1% YoY. Its consolidated cash and investments stood at Rs 45,232 crore at the end of September.
Also Read: Infosys dividend alert! IT major announces Rs 26 per share dividend. Check record date
Zetwerk Manufacturing shares list at 5% premium over IPO price
Shares of Zetwerk Manufacturing Business listed at a 5% premium over its IPO price on Friday. The stock opened at Rs 159 on the BSE and NSE, against the issue price of Rs 151. The stock closed at Rs 138.30, down 13.02% from their opening price and 8.41% below the IPO issue price.
IPO details: The Rs 5,012.33 crore IPO comprises a fresh issue of Rs 2,830 crore and an offer for sale (OFS) worth about Rs 2,182 crore.
Subscription snapshot:
- Overall subscription: Zetwerk’s IPO was subscribed 3.1 times.
- QIB portion: The qualified institutional buyer category was subscribed 4.71 times.
- NII: The non-institutional investor segment was subscribed 1.45 times.
- Retail: The retail investor category was subscribed 0.77 times.
Zetwerk eyes manufacturing demand from AI, clean energy as shares debut
Zetwerk aims to tap demand for components and equipment used in artificial intelligence (AI) infrastructure, clean energy, and space projects through its network of factories and suppliers, cofounder and chief executive Amrit Acharya said on Friday.
Use of funds: Zetwerk will use Rs 2,160 crore, or 76% of the fresh issue, to repay borrowings of the parent and nine subsidiaries. The balance, before issue expenses, is earmarked for acquisitions and general corporate purposes.
Manufacturing push: The company's 26 plants accounted for 33.2% of manufacturing revenues in FY26, compared with 7.1% two years earlier.
PHP security vulnerabilities: Indian firms rush to secure systems; banks audit apps
Indian organisations are scrambling to secure their systems after two critical vulnerabilities in PHP — the programming language powering 70% of the web — sparked a global cybersecurity panic.
What happened: The two vulnerabilities are rated 9.2 out of 10 on the CVSS v4.0 severity scale. Cert-EU, the European Union's cybersecurity response team, said that the rating signals unauthenticated remote code execution, meaning an attacker can run commands on a vulnerable server over the internet, without a password or account.
Response: Indian organisations are fast-tracking emergency response plans, pulling vulnerable applications offline, scanning websites for breaches, and demanding urgent patches from their tech vendors, officials and industry executives said.
The scale: More than 22.6 million internet-exposed instances worldwide could be vulnerable, according to Palo Alto Networks’ threat intelligence team.
ETtech Explainer: Why Blinkit is wary of private labels while Instamart sees an opportunity
The July-September results of food and grocery delivery giants Eternal and Swiggy point to diverging strategies in their quick commerce businesses even as competition intensifies. While Blinkit is not looking to significantly expand its private label foray, rival Instamart sees room to grow its year-old brand Noice.
Instamart’s bet: Noice offers 400 products across 20 categories like snacks, groceries, dry fruits, beverages, and more. The company said in its September earnings report that one in eight orders now contain a Noice product. Instamart also launched Nectr recently, for fresh fruits and vegetables. The company said that one in six of their Bengaluru customers bought a Nectr product.
Blinkit’s approach: Eternal CEO Albinder Dhindsa stated that Blinkit aims to play to its strengths rather than becoming "both the platform and a competitor" to brand partners listed on its marketplace. Blinkit, however, sees potential for this in the fresh foods category through its Hyperpure business. The company has a private label play under its foods brand.
Eternal and Swiggy's Q2 results: Blinkit outpaced Instamart on growth, scale and profitability in the September quarter of 2027. Blinkit’s net order value (NOV) rose 79.3% on-year to Rs 20,940 crore, more than three times Instamart’s Rs 6,553 crore, which grew 33.3%.
Also Read: Swiggy CEO Sriharsha Majety says rival Blinkit has the stronger flywheel, aims to fix basics before expanding
Tata Electronics wants bigger bite of Apple
Tata Electronics is looking to scale up its manufacturing beyond iPhone casings, targeting more advanced components such as glass-based enclosures and specialised metal parts, people in the know told us.
Moving up the chain: The company is seeking to climb the value chain and garner a larger piece of the Apple pie in India, an industry source said. Neil Shah of Counterpoint Research explained that advanced components could offer better margins than basic manufacturing and assembly.
Why it matters: India reportedly assembles a quarter of the world’s iPhones, and clocked a record $13.2 billion in iPhone exports in the first five months of this fiscal year.
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I agree to receive newsletters and marketing communications via e-mail