Infosys received a maintained Hold rating from ICICI Securities with a target price of ₹1,630 following the IT services company's Q3FY26 financial results. The brokerage's assessment comes after the company delivered mixed quarterly performance with revenue beating expectations marginally while margins fell short of estimates.

Q3FY26 Performance Overview

The company's third quarter results showed a nuanced performance against analyst expectations. While Infosys managed to achieve a marginal beat on revenue projections, the margin performance disappointed when excluding a one-off benefit from property sale.

Revised Growth Projections

ICICI Securities has updated its revenue growth forecasts for Infosys, expressing increased confidence in the company's medium-term prospects. The brokerage now models higher growth rates for the upcoming fiscal years, citing two key drivers for improved performance.

Key Growth Drivers

The brokerage identifies strong order book momentum as a primary catalyst for future growth, with the order book expanding 30% YoY in 9MFY25. Additionally, ICICI Securities highlights an uptick in AI-led discretionary demand across multiple industries, with particular strength observed in financial services, energy, resources and utilities sectors.

A notable shift in hiring patterns has emerged, with total headcount growing 4.2% YoY, surpassing the TTM revenue growth of 3.3% YoY in constant currency terms. This represents a marked change from previous quarters where headcount growth lagged behind revenue expansion, indicating improved growth visibility for the company.

Valuation and Target Price

ICICI Securities maintains its target price of ₹1,630 based on a one-year forward price-to-earnings ratio of 21x on December 2027 estimated earnings per share of ₹78.00. The brokerage notes that EPS estimates remain largely unchanged despite the revised revenue growth projections, supporting the continued Hold recommendation for investors.

Infosys Ltd. recorded a significant block trade on the National Stock Exchange (NSE), highlighting substantial institutional trading activity in the IT major's shares. The transaction represents one of the notable block deals in the technology sector.

Block Trade Details

The block trade executed on NSE involved substantial volume and value, demonstrating significant investor interest in the company's shares.

Market Significance

Block trades represent large-volume transactions typically executed by institutional investors, mutual funds, or other significant market participants. These transactions are conducted outside the regular market mechanism to minimize impact on the stock's market price. The execution of such a substantial block trade indicates active institutional participation in Infosys shares.

The transaction involved over one million shares, representing a considerable volume that reflects the liquidity and investor interest in the IT services company. Block trades of this magnitude often signal strategic portfolio adjustments by large investors or institutional rebalancing activities.

Transaction Overview

The block trade was executed at ₹1,686.40 per share, representing the agreed price between the buyer and seller for this off-market transaction. Such trades are pre-negotiated between parties and executed as a single large transaction rather than multiple smaller orders in the regular market.

This block trade activity demonstrates the continued investor focus on India's leading IT services companies and reflects the ongoing institutional interest in the technology sector.