Infosys has once again grabbed investor attention with a major corporate move. On Thursday, the IT giant announced a share buyback plan worth Rs 18,000 crore. Moreover, this was the largest buyback in the company’s history. This is the first Buyback in 3 years by Infosys and represents about 2.41% of its paid-up equity capital. Most brokerages have given a thumbs up to the move and see the risk reward poised attractively at the current juncture.
The Infosys buyback price has been fixed at Rs 1,800 per share. This is at 19% premium over the stock’s closing of Rs 1,512.20 on September 11. Here is a detailed analysis of top brokerage views on the stock after the Buyback announcement
Jefferies on Infosys: Risk reward attractive
The brokerage firm Jefferies has recommended ‘Buy’ on Infosys with a target price of Rs 1,660. This suggests an upside potential of nearly 6% from the current market price. According to Jefferies, Infosys continues to be one of its preferred picks in the IT sector sector stock.
Jefferies report highlighted that Generative AI is becoming a core pillar of Infosys’ strategy. The management expects AI to lift both revenue and profitability. “Infosys expects AI to be net-positive, sees pricing and lower pass-through costs as key margin drivers and expects FCF conversion to remain above 100% in FY26,” the brokerage added.
The report also added that AI-led savings are unlikely to shrink tech budgets, as “most CIOs are struggling to deliver on outcomes with their existing budgets. Hence AI-led savings are more likely to be reinvested on pending initiatives.”
Infosys cash generation remains another key factor supporting the valuation, as per Jefferies. The company delivered its highest-ever free cash flow (FCF) in FY25 at $3.8 billion. According to the brokerage, the management expects this trend to continue, with free cash flow conversion staying above 100% of net profit in FY26.
Nomura on Infosys: Preferred pick in tech sector
Nomura has maintained a ‘Buy’ rating on the IT major with a target price of Rs 1,880. This indicates an upside potential of about 24% from current levels for the Infosys share price. According to the brokerage report, “Infosys is one of our top picks in the large-cap India IT space; retain Buy.”
The brokerage expects Infosys to post 3.8% year-on-year dollar revenue growth in FY26. This includes a contribution of around 40 basis points from acquisitions. The report also noted that the recently announced Versent deal is not yet factored into the estimates. “The stock is currently trading at around 20x FY27 EPS of Rs 75.20 per share and offers an attractive dividend yield of around 4.4% (on FY27 basis),” the brokerage highlighted, adding that Infosys, along with Cognizant, are among its preferred IT picks.
On the capital return front, the brokerage house pointed out that with the fresh buyback and an expected dividend of Rs 55 per share in FY26, Infosys is likely to deliver higher returns, “greater than 100% of its FY26 free cash flow to shareholders.”
The brokerage added, “We estimate the buyback to be largely EPS-neutral in FY26F. Recall, Infosys had noted that it expects dividends to increase progressively every year (in FY25 it had paid a dividend of Rs 43/share).”
Infosys: Why this Buyback matters
The buyback will be carried out through the tender offer route, with eligibility determined based on a record date to be announced later.
Shareholders, including those converting American Depositary Shares (ADSs) into underlying equity shares, can participate proportionately in line with SEBI regulations.
Infosys Buyback history
This is the fifth buyback by Infosys in the last eight years. The company’s previous buybacks were in 2017, 2019, 2021, and 2022-23, each at a premium ranging from 18% to 30%.
Infosys share performance
Infosys shares have struggled this year. The stock has fallen around 19% in 2025 so far, underperforming the broader market and the BSE Sensex, which has gained 3.72% during the same period.
Over the last one years, Infosys shares price has plunged 22% and on a month on month basis, it is down 5%.
If you check the list of IT sector stocks in India, this is the country’s second-largest IT services company headquartered in Bengaluru. It currently holds a market capitalisation of Rs 6.36 lakh crore.