Update shared on 14 Dec 2025
Fair value Increased 0.34%Analysts have nudged their fair value estimate for Infosys slightly higher to approximately ₹1,725 per share from about ₹1,719, citing a marginally higher required return, offset by modestly softer long term growth and profitability assumptions, and a largely unchanged forward valuation multiple.
What's in the News
- Infosys launched an AI Agent for the energy sector using Infosys Topaz, Infosys Cobalt, Microsoft Copilot Studio, Azure OpenAI and chatGPT4o to provide real time insights, predictive warnings and automation that improve safety, reliability and operational efficiency in drilling and production environments.
- The company introduced Infosys Topaz Fabric, a composable, interoperable AI and data stack that unifies IT operations, transformation, quality engineering and cybersecurity services, delivering more than 50 pre built AI agents that execute end to end workflows with humans in the loop.
- Infosys secured a £1.2 billion, 15 year contract from NHS Business Services Authority to build the Future NHS Workforce Solution, a modern, AI enabled platform that will replace the Electronic Staff Record and manage payroll and workforce processes for 1.9 million NHS employees.
- Management reaffirmed a cautious growth outlook, guiding for fiscal 2026 constant currency revenue growth of 2 percent to 3 percent, while maintaining an operating margin band of 20 percent to 22 percent.
- Infosys continues to pursue inorganic growth, with CEO Salil Parekh highlighting an active pipeline of acquisition opportunities focused on bolstering capabilities in digital, AI, cloud, cybersecurity and key geographic markets.
Valuation Changes
- Fair Value Estimate has risen slightly, from approximately ₹1,719.18 per share to about ₹1,725.09 per share.
- Discount Rate has inched up marginally, from roughly 15.99 percent to about 16.00 percent, reflecting a slightly higher required return.
- Revenue Growth has eased modestly, from around 5.45 percent to approximately 5.25 percent, indicating slightly more conservative top line expectations.
- Net Profit Margin has ticked down fractionally, from nearly 16.57 percent to about 16.55 percent, suggesting a small tempering of long term profitability assumptions.
- Future P/E Multiple has edged lower, from about 32.59x to roughly 32.51x, implying a marginally softer valuation multiple applied to forward earnings.
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