Promoters’ Decision Sparks Investor Optimism
The shares of Infosys witnessed a sharp rise of nearly 5% on October 23 after the company’s promoters and promoter group, including Nandan M. Nilekani and Sudha Murty, decided not to participate in the firm’s massive ₹18,000 crore share buyback program. Trading at ₹1,543.90 per share on Thursday, Infosys emerged as the top performer on the Nifty IT index as well as the benchmark indices Sensex and Nifty, reflecting renewed investor confidence.
Inside Infosys’ ₹18,000 Crore Share Buyback
On September 11, Infosys announced board approval for its largest-ever share buyback, valued at ₹18,000 crore, with a buyback price set at ₹1,800 per share. This marks Infosys’ first share repurchase initiative since 2022, when it executed a ₹9,300 crore buyback. A share buyback is a corporate action where a company repurchases its own shares from existing shareholders, thereby reducing the number of outstanding shares in the market. The ₹1,800 per share buyback price reflected a premium of over 19% compared to the stock price on the day of announcement, indicating the company’s confidence in its valuation.
Promoters Decline Participation in Buyback
In an exchange filing dated October 22, Infosys confirmed that its promoters and promoter group have chosen not to participate in the buyback. As of September 30, 2025, the promoter group collectively held 14.30% of the company’s equity, while the public owned 85.46%. Among the key promoters, Co-founder Nandan Nilekani owned 1.08% of the company, NR Narayana Murthy and Sudha Murty held 0.40% and 0.91% respectively, and their children, Rohan Murthy and Akshata Murthy, owned 1.60% and 1.03% each. Co-founder Kris Gopalakrishnan held a 0.84% stake, while his wife Sudha Gopalakrishnan had the largest promoter holding at 2.52%.
Why the Promoters’ Move Boosted Infosys Stock
Market analysts viewed the promoters’ decision as a positive signal. According to Saurabh Jain, Assistant Vice President of Retail Equities at SMC Global, the move indicates the promoters’ strong confidence in the company’s long-term prospects while improving the entitlement ratio for retail shareholders. Similarly, Anita Gandhi, Founder and Head of Institutional Business at Arihant Capital Markets, noted that the decision reflects faith in the business fundamentals, which further bolstered investor sentiment across the IT sector.
Infosys Stock Performance and Market Trends
Over the past five days, Infosys shares have gained more than 6%, and about 3% over the last month. However, the stock remains down over 18% so far in 2025. The company’s current price-to-earnings (P/E) ratio stands at around 22.23, reflecting moderate valuation levels compared to industry peers.
Q2 FY26 Financial Highlights
On October 16, Infosys reported a net profit of ₹7,364 crore for Q2 FY26, marking a 13.2% year-on-year (YoY) increase from ₹6,506 crore in Q2 FY25. Revenue from operations grew 8.5% to ₹44,490 crore, while total expenses reached ₹35,243 crore. The company declared an interim dividend of ₹23 per equity share, with October 27 set as the record date for eligible shareholders. Operating margin stood at 21% for the quarter, and free cash flow remained strong at $1.1 billion, equating to 131.1% of net profit. Infosys also secured large deal wins worth $3.1 billion in total contract value (TCV), with 67% being net new deals. Employee headcount rose by 8,203 during the quarter, underscoring steady business growth and hiring momentum.
Outlook for Investors
Infosys’ decision to execute its largest-ever buyback, coupled with the promoters’ choice to stay invested, paints a strong picture of confidence and stability. With improving fundamentals, robust cash flows, and growing deal momentum, the company appears well-positioned to navigate market challenges and sustain long-term shareholder value.
