Infosys, India’s second-largest IT services company, will deliberate on a share buyback proposal at its upcoming board meeting on September 11, 2025, marking its first such move since 2022. The announcement comes at a time when Infosys stock has sharply underperformed, shedding nearly 25% over the past year and about 24% year-to-date.
First Buyback Since 2022
Infosys last executed a buyback in 2022, spending ₹9,300 crore to repurchase shares through the open market route. Notably, all of its previous three buybacks have been conducted in this manner, as opposed to the tender offer method, where shares are repurchased at a fixed premium above market price.
The potential buyback underscores the company’s intent to bolster shareholder value at a time when market sentiment towards IT services has been subdued.
Stock Market Performance
On September 9, Infosys shares ended 0.59% lower at ₹1,436.10 on the NSE, despite the announcement coming after market hours. However, in early trade the following session, the stock gained over 3%, reflecting investor optimism around the buyback proposal. Other IT peers also edged higher in sympathy.
The Nifty IT index has struggled over the past fortnight, logging losses in eight out of the last nine sessions and shedding close to 2,000 points. Analysts attribute the weakness to global headwinds, including concerns over potential U.S. tariffs on Indian IT services—though no official confirmation has been issued.
Industry Context
Despite the challenging stock performance, Infosys reported 9% year-on-year growth in consolidated net profit and 8% revenue growth in Q1 FY26, suggesting operational resilience. Still, sector-wide caution persists, with global players like Endava highlighting that while AI-related opportunities are expanding, clients remain hesitant to commit to large-scale spending. Endava’s stock fell nearly 30% following this commentary, adding to broader sector concerns.
Summary
Infosys will consider its first buyback since 2022 on September 11, a move aimed at restoring investor confidence after a year of sharp underperformance. While its fundamentals remain solid, the broader IT sector continues to face pressure amid global uncertainties. The buyback plan could provide a much-needed sentiment boost for Infosys and its peers in the near term.
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