Infosys Q2 results preview: Analysts see PAT rising 10%; guidance in focus

Infosys Q2 results preview:Infosys, the country’s second-largest IT services company, is set to announce its Q2FY27 results on Friday (October 23), after market hours. Brokerages expect the company to report revenue growth of around 1.5-1.7 per cent Q-o-Q in constant currency (CC) terms, with margins likely to improve. Brokerages said that the Street will watch for a possible revision in FY27 revenue growth guidance amid demand concerns in some segments.

The adjusted PAT in the September quarter may rise by around 10 per cent, while TCV is likely to be in the range of $2.5-3 billion. Infosys Q2 results preview by Nuvama Nuvama estimates Infosys' revenue to grow +1.7 per cent Q-o-Q in CC and +1.5 per cent Q-o-Q in USD terms, including 0.5 per cent inorganic and a 0.5 per cent boost from the absence of a provision in the last quarter. Ebit may rise by 12.7 per cent Y-o-Y and 3.7 per cent Q-o-Q to ₹10,541 crore, while Ebit margin is likely to expand 40 bps Y-o-Y and 30 bps Q-o-Q to 21.4 per cent.

The brokerage expects Infosys to trim its FY27 revenue growth guidance to 1-2.5 per cent CC Y-o-Y (1.5–3 per cent earlier) while maintaining margin guidance. PAT may increase by 7.9 per cent Y-o-Y and 2.3 per cent Q-o-Q to ₹7,945.8 crore. ALSO READ: Stock Market LIVE: Sensex down 300 pts; Jio IPO subscribed 4.3 times on 2nd day so far Infosys Q2 results preview: Deven Choksey Research Deven Choksey Research expects Infosys to report an in-line Q2FY27, with revenue of ₹49,211 crore, up 10.6 per cent Y-o-Y and 2.1 per cent Q-o-Q.

USD revenue is expected at around $514.8 crore, implying around 1.3 per cent CC Q-o-Q growth, which keeps FY27 at the upper end of the 1.5–3 per cent guidance range. Ebit is expected at ₹10,293.7 crore, with margin at 20.9 per cent, down 20 bps Q-o-Q due to wage revision and AI delivery investments. PAT is expected at ₹8,000 crore, up 8.5 per cent Y-o-Y, supported by stable other income of ₹1,000 crore.

Large-deal TCV is likely to remain around $3 billion, the brokerage said. Deven Choksey Research sees a deeper-than-expected trim to FY27 CC revenue guidance if September's demand softening in Retail and Communication extends into H2 and Q3 furloughs. Infosys Q2 results preview: Mirae Asset Sharekhan As per Mirae Asset Sharekhan estimates, Infosys is expected to deliver 1.5 per cent Q-o-Q CC growth, driven by 50-60 bps contribution from Optimum acquisition.

Margins are expected to improve by around 58 bps Y-o-Y and 52 bps Q-o-Q to 21.6 per cent, driven by Project Maximus and reversal of high cost base due to client termination. TCV is likely to be in the range of $2.5-3 billion, the brokerage said, while the company could revise the guidance to 1.5-2.5 per cent. Revenue in rupees is pegged at ₹49,170 crore, up 10 per cent Y-o-Y and 2 per cent Q-o-Q.

The adjusted net profit could come in at ₹8,094 crore in the quarter under preview, up 9.9 per cent Y-o-Y and 4.2 per cent Q-o-Q. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.