Infosys Share Price Soars After Record-Breaking Buyback Announcement
Every news in the world of stock market brings a new emotion. When investors heard that Infosys has announced a record-breaking Infosys share buyback proposal for its shareholders, their excitement increased even more. On September 12, in the morning trading session itself, Infosys share price jumped more than 2%, which was a positive surprise for the company’s investors.
Infosys, India’s second largest IT company, has announced its biggest buyback of Rs 18,000 crore this time. As soon as the market opened, Infosys share price reached almost Rs 1,539.90, and investors were happy with this unexpected and positive step.
Infosys Share Price And Buyback Details
The company confirmed in its exchange filing that the buyback will not exceed 25% of aggregate paid-up capital and will be 2.41% of the company’s total equity. The biggest thing is that the buyback price has been decided at Rs 1,800 per share, which is almost 19% premium compared to the last close of Rs 1,509.70.
This development is especially significant because this is Infosys’ first buyback after 2022. At that time the company had approved a buyback of Rs 9,300 crore. The record date has not been announced yet, but for investors this is clearly a strong signal that the company is committed to its shareholders.
Impact of Infosys Share Buyback Proposal
A share buyback means that the company buys back its own shares from its existing shareholders. This not only balances the demand-supply in the market, but also safeguards the interests of investors in the long term such as Infosys share price target by 2025.
This time Infosys has also taken some exemptions from the US SEC as there are some conflicting requirements in Indian and US regulatory frameworks, especially in the case of tender offer buybacks.
Infosys’ strong balance sheet also supports this buyback decision. In FY25, the company had more than Rs 42,000 crore in cash and Rs 20,000 crore in free cash flow. This clearly shows that Infosys has ample resources for shareholder payouts. Under the capital allocation policy, the company has committed to return 85% of its free cash flow in the next 5 years through dividends and repurchases.
Infosys Share Price NSE India Performance
In the last 5 days, Infosys shares have gained more than 6%, and gains of up to 8% can also be seen within a month. But if we look at the broader 2025 performance, the stock is still down almost 18%.
This contrasting performance creates mixed signals for investors. In the short-term, the momentum has become positive due to buybacks, but in the long-term, macro challenges and global uncertainties are still creating hurdles for the stock.
Brokerage Houses’ View On Infosys Share Price
Now the question is whether to buy Infosys shares at this time, hold them or sell them. Different brokerages have given their views on this.
CLSA has given an ‘Outperform’ rating on the stock and has fixed Infosys share price target by 2025 at Rs 1,861. This target implies a 23% upside compared to the current closing price.
Nomura has also taken a bullish stance and has given the stock a target of Rs 1,880 with a ‘Buy’ rating. They believe that the company’s CC revenue will grow by 3.8% in FY26, which is a strong indicator.
On the other hand, Morgan Stanley is a bit cautious and has given an ‘Equal-weight’ call. They have fixed a target of Rs 1,700, which implies an upside of about 13%. But they also acknowledged that the size of the buyback is much higher than their estimate of Rs 10,000-14,000 crore.
Infosys Share Price Outlook Ahead
Talking about financial performance, in the first quarter of FY26, Infosys reported a net profit of Rs 6,921 crore with 8.7% YoY growth, which was better than analysts’ expectations. Revenue also grew by 7.5% YoY to Rs 42,279 crore.
The company has revised its revenue guidance and estimated 1–3% CC growth, which is slightly higher than the earlier 0–3%. Operating margin guidance is still maintained at 20–22%.
All these factors together create a strong base where investors’ confidence is returning on Infosys share price NSE India. But investors will have to be cautious considering macro challenges like US tariffs and global IT spending slowdown.
Final Thoughts on Infosys Share Buyback
This historic Infosys share buyback is not just a financial step but also an emotional confidence booster for the shareholders. It clearly shows that the company understands the value of its investors and is fully dedicated to giving them better returns.
At present Infosys share price is in strong momentum and if the company successfully achieves its growth guidance, this stock can be beneficial for investors in both medium and long term. Yes, but it would be wise to take investment decisions after considering the global challenges and cyclical ups and downs of the IT sector.
Disclaimer:
All the information given in this article is for educational and informational purposes only. Stock market and IPO investments are risky. Before taking any financial decision, definitely take the advice of your certified financial advisor.
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