Infosys Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Infosys Ltd trades at ₹1,038, in a downtrend and 29 weeks into that stage. That is −17.4% against its own 200-day average. It sits at 7% of a 52-week range of ₹985 to ₹1,690. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (1 week and counting).

Today the stock is in a downtrend — week 29 of stage 4, confirmed. At ₹1,038 it trades −17.4% versus its 200-day average and sits at 7% of its 52-week range (₹985–₹1,690).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +82% while the NIFTY 500 moved +267% — behind the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (1 week and counting; last ahead the week of 2026-09-04) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Infosys Ltd trades at 13.5× P/E, about the cheapest it has ever traded. Its long-run median P/E is 22.4×, measured across 10.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 13.5× is about the cheapest it has ever traded, against a long-run median of 22.4× measured over 10.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +12.9% against a −32.0% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the −9.3%/yr price move, ~+9.9%/yr came from earnings growth and ~−19.2 pp from the multiple (compressing); over 10y, of the +7.2%/yr price move, ~+9.7%/yr came from earnings growth and ~−2.5 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

The PEG ratio and its quarterly curve, which only the second data source carries, are not drawn on this page: its second data source reports in USD, not rupees, so nothing from it can be placed on this crore axis. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 13 June 2026 price, Infosys Ltd was paying for profit growth of about 6.9% a year. Profit itself has compounded 8.1% a year over the past 10 years. Today the market pays 13.5× P/E, the 0th percentile of its own 11-year range.

What the two numbers say together. The multiple is low against its own past, and the growth the price is paying for is close to what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 13 June 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Infosys Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 40.0% and holding. The read is built from 8 quarters across 4 curves, on partial evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

55.1/100 — rank 23 of 64 in IT - Software · 82% evidence confidence

Infosys Ltd scores 55.1 out of 100 against the 64 companies it is compared with in IT - Software, ranking 23. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 18.1 + 20.1 + 14 + 2.9 = 55.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Infosys Ltd reported ₹48,211 Cr of revenue in the Jun 26 quarter, +14.0% year on year. That is the 11th straight quarter of year-on-year growth. Over 10 years it has compounded at 11.1% a year. The last full year, FY26, came in at ₹1,78,650 Cr. The last four reported quarters add to ₹1,84,582 Cr.

FY26 revenue came in at ₹1,78,650 Cr (+9.6% on the year), capping 10 years at 11.1% compound. The latest quarter (Jun 26) printed ₹48,211 Cr, +14.0% year on year — the 11th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +11.2% growth against the decade's 11.1% — the current year is running in line with its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +11.2% over the last 4 quarters against +9.1%/yr over the last 8 — stabilising; TTM profit +11.1% vs +6.6%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Infosys Ltd's operating margin is 24.0% in the Jun 26 quarter, +0.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 24.0% to 28.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 24.0%, +0.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 24.0%–28.0%.

Why the margin moved: operating margin went +0.1 pp year on year while gross margin went +0.0 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Infosys Ltd earned ₹7,775 Cr of net profit in the Jun 26 quarter, +12.3% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹29,474 Cr. The 10-year compound rate is 8.1%. That is 16.1% of the quarter's revenue. The same quarter a year earlier earned ₹6,924 Cr.

Jun 26 profit was ₹7,775 Cr, +12.3% year on year — the 2nd consecutive quarter of growth. On the full year, FY26 printed ₹29,474 Cr (+10.2%), and the 10-year compound rate is 8.1%.

Why profit moved: revenue contributed +14.0% and the margin +0.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +11.0% vs revenue +11.2%. Profit and revenue are moving roughly in step.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 115% of Infosys Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹33,986 Cr of operating cash against ₹29,474 Cr of profit. After ₹7,423 Cr of capital spending, ₹26,563 Cr was left as free cash.

FY26: operating cash of ₹33,986 Cr against reported profit of ₹29,474 Cr, leaving free cash of ₹26,563 Cr after ₹7,423 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 115% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 115%: the cash cycle held roughly steady between FY21 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Infosys Ltd's cash conversion cycle runs 72 days in FY26, up from 70 days in FY21. Capital spending ran ₹19,175 Cr over the last 3 years. At FY26 sales of ₹1,78,650 Cr each day of that cycle holds about ₹489 Cr, so roughly ₹35,241 Cr sits inside the business at any moment.

FY26: debtors at 72 days (an asset-light business — no inventory to speak of) — for a full cycle of 72 days, looser than FY21's 70.

In money terms: at FY26 sales of ₹1,78,650 Cr, each day of the cycle holds about ₹489 Cr — so the 72-day loop keeps roughly ₹35,241 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹19,175 Cr over the last 3 fiscal years against ₹14,392 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹526 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Infosys Ltd earns a ROCE of 40% in FY26. That is up from a trough of 30% in FY17. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 16.5% net margin on 1.16× asset turns.

FY26 ROCE is 40%, recovered from a FY17 trough of 30% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 16.5% net margin × 1.16× asset turns × 1.66× balance-sheet leverage ≈ 31.8% on equity. Margin is doing the heavy lifting; leverage is a meaningful part of the equation.

The quarterly return curves and the return-on-invested-capital overlay, which only the second data source carries, are not drawn on this page: its second data source reports in USD, not rupees, so nothing from it can be placed on this crore axis. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Infosys Ltd carries ₹9,176 Cr of borrowings against ₹92,852 Cr of equity in FY26, a debt-to-equity of 0.10. Operating profit covers the interest bill north of 100×. Over 5 years borrowings went from ₹5,325 Cr to ₹9,176 Cr. Capital spending ran ₹19,175 Cr across the last 3 of those years.

FY26: borrowings of ₹9,176 Cr against equity of ₹92,852 Cr — a debt-to-equity of 0.10. Operating profit covers the interest bill north of 100×. Over 5 years borrowings went from ₹5,325 Cr to ₹9,176 Cr while capital spending ran ₹19,175 Cr in just the last 3 — part of the build-out is riding on borrowed money.

The total-debt and debt-to-equity series, which only the second data source carries, are not drawn on this page: its second data source reports in USD, not rupees, so nothing from it can be placed on this crore axis. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions cut 5.7 points of Infosys Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 27.1% of the company. Domestic institutions moved +5.5 points over the same window, to 42.8%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −5.7 points over 8 quarters to 27.1%; Domestic institutions: +5.5 points over 8 quarters to 42.8%; Promoters: −0.8 points over 8 quarters to 13.8%. Note the structure: promoters hold under 20% — this is a widely-held company where institutions, not a family, set the direction.

Why the register moved: rotation — foreign institutions −5.7 points against domestic institutions +5.5 points over 8 quarters, with promoters −0.8 points — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Infosys Ltd: the Z-score is withheld — it comes from the second data source this page could not reconcile, and a solvency score is not worth printing on a number two sources dispute. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

The safety line in one sentence: the Z-score is withheld — it comes from the second data source this page could not reconcile, and a solvency score is not worth printing on a number two sources dispute.

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