Infosys Shares Recover Marginally a Day After CLSA Warns of Weak Q3 Earnings

Infosys Ltd shares saw a mild recovery in Tuesday’s trade, rising 0.40% to ₹1,612.80 on the NSE, a day after coming under pressure following a cautious note from global brokerage CLSA on the IT services sector ahead of the Q3 earnings season. The stock had closed at ₹1,606.04 in the previous session. The marginal uptick suggests some buying interest at lower levels even as investor sentiment remains guarded. CLSA’s commentary had flagged near-term challenges for the sector.

For the unversed, the Indian IT sector had come under sharp selling pressure in Monday’s trade, weighed down by multiple factors, including a cautious note from CLSA ahead of the Q3 earnings season. The Nifty IT index had declined nearly 2%, emerging as the biggest laggard on the Nifty 50 and dragging the benchmark down by about 30 points. Heavyweights Infosys and HCLTech had led the fall, with both stocks sliding over 3% during the session. Other IT majors such as TCS, Tech Mahindra and Persistent Systems had also witnessed significant declines, resulting in all constituents of the Nifty IT index ending the day in the red.Against this backdrop, today’s mild recovery in Infosys reflects selective buying after the sharp sell-off, even as overall sentiment towards the IT sector remains cautious ahead of Q3 earnings.

For Infosys, Jefferies expects a 5% year-on-year constant-currency revenue CAGR over FY26–FY28, the highest among large Indian IT firms, and highlights its positioning as a preferred AI partner for several large global banks.s, HDFC Securities expects the company to increase FY26 revenue growth guidance by about 100 basis points to 3–4% constant currency, while retaining margin guidance of 20–22%.Kotak expects improving deal conversion and operational efficiency to support better medium-term growth visibility relative to peers.. For Infosys, Nuvama expects the company to maintain its FY26 guidance of 2–3% constant-currency revenue growth and 20–22% operating margins, supported by efficiency initiatives and deal momentum.