Infosys Buyback , India’s second-largest IT services company, has once again become the talk of Dalal Street after unveiling its largest-ever share Infosys buyback plan. The IT giant announced a ₹18,000 crore buyback program, sparking interest among retail and institutional investors alike.
The move comes at a time when Infosys shares have been under pressure in 2025, falling nearly 19% year-to-date. However, top global brokerages like Jefferies and Nomura believe the Infosys buyback, coupled with the company’s strong fundamentals and rising AI-driven opportunities, makes Infosys a compelling investment bet right now.
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Key Highlights of Infosys Buyback 2025
- Infosys Buyback Size: ₹18,000 crore
- Infosys Buyback Price: ₹1,800 per share
- Premium: 19% over the closing price of ₹1,512.20 on September 11
- Equity Impact: Represents about 2.41% of Infosys’ paid-up equity capital
- Method: Tender offer route as per SEBI regulations
- Record Date: To be announced later
This marks Infosys’ fifth buyback in the last eight years and its first since 2022–23. The company has consistently rewarded shareholders, with earlier buybacks (2017, 2019, 2021, and 2022–23) also being executed at healthy premiums.
Jefferies on Infosys: “Risk-Reward Attractive Now”
Global brokerage Jefferies has reaffirmed its ‘Buy’ rating on Infosys, setting a target price of ₹1,660, suggesting an upside of around 6% from current levels.
Jefferies’ report emphasized that Generative AI is becoming a key growth driver for Infosys. The management expects AI adoption to positively impact revenue growth, operating margins, and long-term profitability.
“Infosys expects AI to be net positive. Pricing efficiencies, cost optimization, and reinvestments into new initiatives are expected to drive margin expansion. Free cash flow conversion is likely to stay above 100% in FY26,” Jefferies noted.
Additionally, Infosys reported its highest-ever free cash flow of $3.8 billion in FY25, strengthening confidence in its ability to sustain high shareholder returns.
Nomura on Infosys: “Top Pick in the IT Sector”
Brokerage house Nomura has taken an even more bullish stance, retaining its ‘Buy’ rating with a target price of ₹1,880 — an upside potential of nearly 24%.
Nomura expects Infosys to deliver 3.8% year-on-year dollar revenue growth in FY26, with a 40 bps contribution from acquisitions. The recent Versent acquisition is expected to further strengthen Infosys’ capabilities, although it has not yet been factored into current estimates.
The brokerage also highlighted Infosys’ strong dividend policy. With the new Infosys buyback and an expected FY26 dividend of ₹55 per share, shareholders are expected to see greater than 100% of free cash flow returned.
Infosys currently trades at around 20x FY27 EPS estimates (₹75.20), offering an attractive dividend yield of 4.4%, making it one of Nomura’s top IT picks alongside Cognizant.
Why Infosys Buyback Matters for Investors
Infosys’ decision to go for a ₹18,000 crore buyback sends a strong message of management confidence in the company’s future prospects. For investors, buybacks often signal undervaluation, provide a way to return cash, and help improve earnings per share (EPS) by reducing outstanding equity.
Unlike dividends, which are taxed in the hands of shareholders, buybacks can sometimes be more tax-efficient depending on investor categories. Moreover, by executing the buyback through the tender offer route, Infosys ensures equitable participation for both retail and institutional shareholders.
Infosys Buyback History
Infosys has built a reputation for consistently rewarding shareholders. Here’s a quick look at its buyback history:
| Year | Buyback Size | Premium Over Market Price | Method |
|---|---|---|---|
| 2017 | ₹13,000 crore | ~25% | Tender Offer |
| 2019 | ₹8,260 crore | ~18% | Tender Offer |
| 2021 | ₹9,200 crore | ~30% | Tender Offer |
| 2022–23 | ₹9,300 crore | ~22% | Tender Offer |
| 2025 | ₹18,000 crore | ~19% | Tender Offer |
Clearly, the 2025 Infosys buyback is the largest in Infosys’ history, underlining its strong cash position and shareholder-focused strategy.
Infosys Share Price Performance
Despite being one of India’s most respected IT companies, Infosys shares have struggled in 2025.
- YTD 2025: Down 19%
- Past 12 Months: Down 22%
- Last 1 Month: Down 5%
This underperformance contrasts with the BSE Sensex, which is up nearly 3.7% in the same period. Analysts believe the Infosys buyback announcement could act as a trigger for re-rating Infosys shares in the near term.
Infosys in Numbers (2025 Snapshot)
- Market Cap: ₹6.36 lakh crore
- Headquarters: Bengaluru, India
- FY25 Free Cash Flow: $3.8 billion (highest ever)
- Dividend Paid in FY25: ₹43 per share
- Expected Dividend FY26: ₹55 per share
What Should Investors Do Now?
For long-term investors, the Infosys buyback 2025 represents a golden opportunity. The ₹1,800 per share buyback price offers a 19% premium over current levels, which could provide a short-term gain for those looking to tender shares.
Meanwhile, investors with a long-term horizon may choose to hold, given Infosys’ consistent free cash flow generation, rising AI-driven demand, strong deal pipeline, and history of rewarding shareholders.
Both Jefferies and Nomura have emphasized that Infosys remains one of their preferred picks in the IT sector. With a stable outlook, attractive dividend yield, and strategic AI focus, Infosys could see renewed investor interest going into FY26.
The Infosys buyback 2025 has created a buzz in India’s IT sector and capital markets. While the stock has underperformed in 2025, the buyback signals strong fundamentals and management confidence. With global brokerages backing the company and AI-led opportunities on the horizon, Infosys continues to remain a solid long-term bet for investors.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors are advised to consult their financial advisor before making any investment decisions.
