Infosys Limited has received favorable income tax assessment orders from the Income-tax Department, Government of India, resulting in a cumulative refund of ₹1,745 crore including interest. The company disclosed this development to stock exchanges on March 31, 2026, pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Assessment Orders Details

The income tax assessment orders were issued under Section 250 and Section 254 of the Income-tax Act, 1961, covering multiple assessment years. The orders were received in phases during the final week of March 2026.

Financial Impact

The assessment orders indicate a significant financial benefit for Infosys, with the cumulative refund amount totaling ₹1,745 crore including interest. This substantial refund spans across six assessment years, covering nearly a decade of tax assessments from 2013-14 to 2021-22.

Company Response and Next Steps

Infosys is currently in the process of evaluating the comprehensive impact of these assessment orders on its financial statements for the quarter and year ended March 31, 2026. The company has indicated that a detailed analysis is underway to determine how this refund will be reflected in its financial reporting.

Regulatory Compliance

The disclosure was made simultaneously to all major stock exchanges where Infosys shares are listed, including BSE Limited, National Stock Exchange of India Limited, and New York Stock Exchange. The communication was signed by A.G.S. Manikantha, Company Secretary, and has been made available on the company's official website at www.infosys.com for public access and transparency.

Infosys Board has formally approved two major strategic acquisitions worth up to $560 million during their meeting held on March 25, 2026. The acquisitions target specialized firms in healthcare digital transformation and insurance consulting technology sectors, representing a significant expansion of the company's domain expertise.

Analyst Reactions and Price Targets

Following the acquisition announcement, leading investment firms have updated their outlook on Infosys. Nomura maintains its Buy rating with a target price of Rs 1810.00, expecting the $560 million acquisitions to add approximately 225 basis points to FY27 growth while expanding healthcare and life sciences capabilities and bringing new clients.

Morgan Stanley rates Infosys as Equal Weight with a target price of Rs 1760.00, noting that while the acquisitions of Optimum Healthcare IT ($465 million) and Stratus (up to $95 million) will add approximately 1.20% to FY27 revenue, they are expected to be neutral to slightly dilutive to earnings.

Board Meeting and Regulatory Approval

The Board meeting, which commenced at 8:35 p.m. IST and concluded at 9:17 p.m. IST on March 25, 2026, approved both acquisition transactions under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Healthcare Digital Transformation Acquisition

The larger acquisition involves Optimum Achieve Holdings, Inc. along with its subsidiaries, including Optimum Healthcare IT, LLC. This Best in KLAS healthcare digital transformation and consulting firm brings 1,600+ experts with deep healthcare provider domain expertise.

Optimum Healthcare IT's revenue performance shows strong growth trajectory with FY25 revenue of $275.90 million, compared to $106.60 million in FY24 and $114.30 million in FY23.

Insurance Technology Expansion

The second acquisition targets Stratus Global LLC, a leading technology solutions provider for the property & casualty (P&C) insurance industry. Stratus brings 450+ experts with specialized Guidewire consulting capabilities.

Stratus recorded steady revenue growth with FY25 revenue of $42.80 million, up from $36.20 million in FY24 and $35.10 million in FY23.

Strategic Value and Market Position

Nomura reinforces Infosys as a top large-cap IT pick, highlighting how these acquisitions will enhance the company's capabilities by integrating specialized domain expertise with Infosys Topaz AI offerings and Infosys Cobalt cloud offerings. The healthcare acquisition requires anti-trust approvals under US competition laws, while the insurance acquisition requires no governmental approvals.

Both transactions are structured as 100% equity acquisitions through Infosys Nova Holdings LLC, a wholly owned subsidiary of Infosys Limited, with cash consideration including upfront payments and earnouts.