Infosys Cuts Growth Forecast, Declares ₹26 Dividend

Infosys reported ₹49,244 crore in revenue for the September quarter, just above analysts’ expectations, but cut its full-year growth forecast. The Indian technology services company now expects revenue to grow 1% to 2% in the year ending March 2027, down from its earlier range of 1.5% to 3%. It also approved an interim dividend of ₹26 per share. ^1,11

The ₹26 dividend came alongside a quarter in which Infosys’ revenue rose 10.7% from a year earlier and net profit climbed 6.2% to ₹7,823 crore. Chief Executive Salil Parekh said AI revenue made up 10.5% of total revenue and grew 29% from the previous quarter. The company also won large deals worth $5.2 billion, 62% of them for new business. ^2,6

Those $5.2 billion in deals show why the forecast cut has drawn attention: signed work is not automatically leading to faster growth. Chief Financial Officer Jayesh Sanghrajka blamed weak demand, pricing pressure and customers seeking more productivity. Some clients are using AI to get more work done with fewer people, challenging the old model of charging mainly for staff hours. Infosys said weaker spending in retail and high-tech also weighed on its outlook. ^8,10

That pressure matters across India’s IT services industry, where firms are trying to sell new AI work while customers seek lower costs. Infosys kept its operating-margin target at 20% to 22%, and its reported margin was 21% in the quarter. Shareholders eligible for the dividend must hold the shares by November 3, the record date. Payment is due November 11. ^9,12