Motilal Oswal has maintained its BUY rating on Infosys with a target price of ₹2,150, citing significant upside potential driven by artificial intelligence services deployment and strategic partnerships.

Investment Outlook and Valuation

The brokerage firm has set ambitious expectations for the IT services sector, particularly highlighting 2026 as a transformative year for enterprise AI adoption. Motilal Oswal's analysis suggests that Indian IT services companies are well-positioned to capitalize on this emerging trend.

Strategic AI Partnership

A key highlight in Motilal Oswal's assessment is Infosys's recent strategic collaboration with Cognition. This partnership involves deploying DEVIN, described as Cognition's "AI software engineer," across Infosys's internal teams and client delivery operations. The collaboration represents a significant step toward integrating advanced AI capabilities into traditional IT service delivery models.

Market Positioning and Growth Drivers

Despite acknowledging that near-term demand signals remain choppy, Motilal Oswal's research indicates that the AI services layer is gradually taking shape across the industry. The firm's upgrade note from November 24th, 2025, titled "Time to buy the next cycle," emphasizes the potential for enterprises to begin large-scale AI deployment in 2026.

Investment Rationale

Motilal Oswal's bullish stance on Infosys stems from several factors:

• Valuation Attractiveness: Current valuations present favorable risk-reward dynamics
• AI Integration: Strategic positioning in the emerging AI services market
• Market Leadership: Maintained status as top pick among tier-1 IT companies
• Future Growth Potential: Anticipated benefits from enterprise AI adoption cycle

The brokerage firm's analysis suggests that at current market valuations, the upside risks meaningfully outweigh potential downside risks, supporting their continued BUY recommendation and ₹2,150 target price for the stock.

Infosys shares were trading lower in Monday's session, with the stock declining 0.91% to ₹1,599.40 from its previous close. As of 10:30 am, the stock had touched a day's high of ₹1,612.70 and a day's low of ₹1,595.10. The IT services major, which is a constituent of the Nifty 50 index, is scheduled to announce its Q3 FY26 financial results on Wednesday, January 14.

Strong Financial Performance Track Record

Infosys has demonstrated consistent financial performance across multiple quarters and years. The company's quarterly results show steady revenue growth, with the most recent quarter in September 2025 recording revenue of ₹44,490.00 crore, up from ₹40,986.00 crore in September 2024.

The quarterly performance shows net profit growth from ₹6,516.00 crore in September 2024 to ₹7,375.00 crore in September 2025, while earnings per share increased from 15.71 to 17.76 during the same period.

Annual Growth Trajectory

The company's annual financial performance reflects sustained growth over the past five years. Revenue has consistently increased from ₹100,472.00 crore in 2021 to ₹162,990.00 crore in 2025, representing significant expansion in the company's business operations.

Net profit showed steady growth from ₹19,423.00 crore to ₹26,750.00 crore over the five-year period. The company maintains a debt-free balance sheet with a debt-to-equity ratio of 0.00 across all years. Book Value Per Share increased from 180.75 to 231.11, while Return on Equity remained strong, ranging between 25.34% and 31.95%.

Corporate Actions and Shareholder Returns

Infosys has maintained a consistent dividend policy, with recent dividend declarations including an interim dividend of ₹23.00 per share announced on October 16, 2025, and a final dividend of ₹22.00 per share declared on April 17, 2025. The company has also rewarded shareholders through bonus issues, with notable 1:1 bonus ratios declared on July 13, 2018, and April 24, 2015.

The company has also announced several regulatory compliances and corporate developments, including honors from the Infosys Science Foundation and various regulatory announcements under SEBI guidelines.