Infosys Share Price Dips Post Q1 Buy, Sell, or Hold?

 

The IT major posted a 9% profit jump and strong deal wins, but analysts are divided on the immediate outlook, offering key levels for investors.

Infosys' share price fell marginally on Thursday following the announcement of its Q1 2025 financial results. India's second-largest IT services exporter reported healthy profit and revenue growth on Wednesday after market hours. However, the stock dipped over 0.85 per cent in the subsequent trading session, prompting investors to seek expert guidance on the stock's future direction.

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The company's performance highlights a positive operational story. For the June quarter, Infosys posted a 9 per cent year-on-year increase in consolidated net profit to ₹6,921 crore, with revenue growing 8 per cent to ₹42,279 crore. A key highlight was the large deal wins worth $3.8 billion—the second-highest ever for the firm—while maintaining a resilient operating margin of 20.8 per cent despite investments in GenAI.

Reflecting a cautiously optimistic outlook, the Bengaluru-headquartered firm revised its FY26 revenue growth forecast upwards to a range of 1 per cent to 3 per cent. According to Kalp Jain, Research Analyst at INVasset PMS, this modest uplift suggests "growing confidence in client budgets" amid cautious global IT spending. He added, “Infosys’ Q1 performance reinforces its reputation for execution in a volatile environment."

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The immediate market impact saw the stock being positioned as a "defensive pick" in a struggling sector. Anshul Jain, Head of Research at Lakshmishree Investment, noted that Infosys is "showing notable relative strength" and its divergence from the sector downturn "makes INFY an attractive candidate for accumulation." He identified the ₹1550–₹1575 range as a favourable entry point for investors.

This slight post-earnings dip comes after a period of underperformance for the IT stock. Before the announcement, Infosys shares had already registered negative returns, falling over 2 per cent in the last month and nearly 17 per cent over the past six months. This context of a broader sector downturn helps explain the market's muted reaction to the otherwise solid quarterly results.

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Currently, expert opinion suggests a "hold" or "accumulate" strategy rather than a "sell." Analysts view Infosys as a core portfolio candidate due to its consistent cash generation and stable margins. The key technical level to watch is the resistance near ₹1,650, a breakout above which could signal a trend reversal. For now, experts believe accumulating the stock at current levels could yield solid returns as market sentiment stabilises.