Infosys Announces Massive ₹18,000 Crore Buyback - Brokerages See Major Confidence Signal

Infosys just dropped a financial bombshell—and the street's taking notice.

Massive Capital Return

The tech giant's rolling out an ₹18,000 crore buyback program. That's not just pocket change—it's a statement. Brokerages are calling it the ultimate confidence play in a shaky market.

Street's Verdict: Bullish

Analysts are practically high-fiving over this move. When a company this size puts ₹18,000 crore on the line, it's not just managing cash—it's shouting from the rooftops about undervalued shares. Doesn't hurt that it makes their earnings per share look prettier too—almost like financial cosmetics.

Timing is Everything

Launching this now? Pure chess, not checkers. While traditional finance plays with buybacks, the real innovation's happening on-chain—where transparency isn't an optional feature.

Brokerages upbeat; execution likely in 3–4 months

While Infosys was yet to disclose the timelines for executing the buyback programme, several brokerages, including Morgan Stanley, Investec, and Nomura, were upbeat over the move. Morgan Stanley noted that the company typically takes 3-4 months to execute such a scheme.

Also read

Infosys board approves record ₹18,000 crore share buyback programme

Infosys has previously brought back 33.97 crore shares in the past, in four such schemes, spending cumulatively ₹39,760 crore in the process. At the end of last quarter, Q1 FY26, the company had cash and cash equivalents of ₹45,200 crore. Analysts pointed out that historically, the company has spent about a quarter to a third of its cash reserves in previous buyback schemes, too.

Buyback seen as confidence signal despite 20% stock fall

According to Hariprasad K, a SEBI-registered Research Analyst and Founder of Livelong Wealth, a share buyback at a premium is one of the clearest ways for management to communicate its confidence in the future.

Despite a challenging year that saw Infosys’ stock decline nearly 20%, the company’s strong cash position allows it to reward shareholders while signalling that it sees current valuations as attractive, he said.

Also read

Oracle buys the future, Infosys buys back the past

“Infosys has faced headwinds in the past year due to slowing discretionary technology spending, regulatory uncertainty in the US, and the sector-wide transition toward AI-led solutions. These factors have weighed on sentiment, keeping the stock under pressure. But despite short-term challenges, it continues to boast robust fundamentals: a healthy order pipeline, consistent cash flows, and global credibility as a trusted IT partner. The buyback reflects management’s view that these strengths will translate into sustained growth as technology spending revives and AI adoption creates new opportunities,” Hariprasad added.

Nomura, Investec, CLSA share mixed views

While Nomura reiterated its buy call on the stock, it pointed out that the buyback was in line with the company’s policy of returning 85 per cent of free cash FLOW within a five-year block period. Infosys has been Nomura’s top pick in the large-cap IT space, with the brokerage expecting the company to see a 3.8 per cent YoY dollar growth in revenue for the current year. Investec, on the other hand, pointed out that the buyback would lead to lower dividends in the current year.

CLSA, in its commentary, said that the buyback will support Infy stock during a seasonally weak H2 FY26. It noted that with no major change in demand outlook, cost optimisation remains key.

Infosys’ shares closed today at 1,525.55 on the BSE, up by 1.06%.

Published on September 12, 2025

• Infosys Ltd