You've probably seen the headlines. Infosys just dropped its Q3 results for the 2025-26 fiscal year, and at first glance, the numbers looked a bit... messy. Net profit slipped about 2% year-on-year to ₹6,654 crore. Honestly, if you only looked at that one figure, you might think the infy stock price india was headed for a nosebleed.
But then the markets opened on January 14, 2026, and something weird happened. The ADRs (American Depository Receipts) in New York jumped nearly 10% in pre-market trading. Why? Because the "miss" wasn't really a miss on performance—it was a one-time accounting hit from India’s new labor codes. Basically, the company had to set aside ₹1,289 crore for these regulatory changes. If you strip that out, the engine under the hood is actually humming louder than it has in years.
What’s Really Driving the Infy Stock Price India Right Now?
The big shocker wasn't the profit dip. It was the guidance. Salil Parekh and his team did something bold: they raised their full-year revenue growth forecast to a range of 3% to 3.5%. That’s a decent bump from the previous 2% to 3% window. It tells us that the "pause button" global companies hit on IT spending is finally being released.
The $4.8 Billion Elephant in the Room
Investors are obsessed with the "Total Contract Value" (TCV). This quarter, Infosys clocked in a staggering $4.8 billion in large deals. To put that in perspective, that’s up from $3.1 billion just three months ago. More importantly, 57% of those were "net new" deals. These aren't just renewals of old contracts; this is new territory, including a massive win with the UK’s National Health Service (NHS).
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The AI Pivot: Topaz is Everywhere
Kinda feels like every tech company mentions AI every five seconds, right? But with Infosys, it’s starting to show up in the workflow. Their AI suite, Topaz, is reportedly being used in 90% of engagements with their top 200 clients. They aren't even reporting AI revenue separately anymore because, as Parekh put it, it’s just "embedded" in everything they do now. They’ve already generated over 28 million lines of code using AI internally. That's a massive productivity play that eventually helps protect those margins.
The Labor Code "Hit" and Your Wallet
Let’s talk about that ₹1,289 crore exceptional item. India’s new labor codes have been a looming shadow for the entire IT sector. TCS and HCLTech took similar hits.
The immediate impact? Operating margins narrowed to 18.4%. If you're a long-term investor, you shouldn't panic about this specific drop. Why? Because the adjusted operating margin (the one that excludes this one-time legal cost) actually expanded slightly to 21.2%.
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Current Financial Health Snapshot (Q3 FY26):
- Revenue: ₹45,479 crore (Up 9% YoY)
- Dividend Declared: ₹14.85 per share (Interim)
- Headcount: Increased by over 5,000 (The second quarter of growth after a long hiring freeze)
- Free Cash Flow: $965 million (Adjusted)
Why "Wait and See" is the Dominant Sentiment
Despite the excitement over deal wins, the infy stock price india still faces some stiff headwinds. North America, which is the bread and butter for Indian IT, actually saw a tiny revenue decline of 0.4%. Europe, on the other hand, is carrying the team right now with over 7% growth.
The brokerage world is split. Some analysts are keeping a "Hold" rating with price targets hovering around ₹1,650 to ₹1,700, while others think the AI-led recovery is just starting to bake into the price. You've also got the H-1B visa uncertainty in the US. There’s talk of a $100,000 fee for new visas, which could potentially eat into margins if it actually happens.
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Practical Next Steps for Investors
If you're looking at the infy stock price india for your portfolio, don't just chase the green candles. Here is how to actually play this:
- Watch the Record Date: The board declared an interim dividend of ₹14.85. If you want that cash, you need to hold the shares by the record date of January 21, 2026.
- Monitor the 20% Margin Floor: The company is maintaining its 20%-22% margin guidance for the full year. If they slip below 20% in the next quarter without a "one-time" excuse, it's a red flag.
- Check the BFSI Recovery: Banking and Financial Services (BFSI) is their largest segment. It grew 3.9% this quarter. If this number accelerates in Q4, the stock usually follows.
- Hiring as a Signal: For a year, IT firms were shrinking. Infosys adding 5,000+ people this quarter is a massive "confidence signal." It means they see enough work coming in to justify the payroll.
Honestly, the "boring" days of IT might be over. Between the AI transformation and the regulatory shifts in India, the volatility is back. But for a company that generated nearly a billion dollars in free cash flow in a "weak" quarter, the floor looks pretty solid. Keep an eye on the ₹1,580 support level; as long as it stays above that, the bulls are still in the driver's seat.