Infosys shares surged over 3% on September 9th, reaching ₹1,481. This rally followed the company's announcement of a proposed share buyback on September 11th. The buyback approval could boost investor confidence, and the Nifty IT index also saw an uptrend.
Infosys shares: Shares of Infosys, the country's second-largest IT company, saw a gain of over 3% on September 9th, reaching ₹1,481. This surge came after the company's board announced it would consider a proposal for a share buyback on September 11th, 2025. If approved, this would be Infosys's first buyback in three years. The stock's rise coincided with the Nifty IT index climbing 1.7% to 34,892. Infosys had reported a net profit of ₹6,921 crore in the June quarter.
Share Buyback Proposal Approval
If Infosys's board approves this proposal, it will be the company's first share buyback in the last three years. Previously, in 2022, the company had announced a share buyback of ₹9,300 crore. At that time, the minimum buyback price was set at ₹1,850 per share.
Devansh Vakil, Head of Prime Research at HDFC Securities, stated, "This buyback by Infosys will strengthen investor confidence. This decision comes at a time when the IT sector is facing several challenges." He added that a share buyback would also provide strength and support to the shares.
Shares Rally on Infosys Buyback News
The information regarding the share buyback proposal was released after the stock market closed on Monday, September 8th. Following this, Infosys shares saw a surge in early trading on Tuesday, September 9th. This rally broke the downtrend that had persisted for the past five days.
The surge in Infosys shares also impacted the Nifty IT index, which rose by 1.7% to the level of 34,892. During this period, Infosys's stock was the top gainer on both the Nifty and Sensex.
Recent Share Performance
Over the last six months, Infosys shares have declined by approximately 13%. Furthermore, since the beginning of 2025, the stock has fallen by over 21%. This decline was attributed to stringent tariffs imposed by US President Donald Trump and global economic uncertainties.
Infosys's consolidated net profit for the recent June quarter increased by 8.7% year-on-year to ₹6,921 crore. During the same period, the company's revenue rose by 7.5% to ₹42,279 crore.
The company has revised its revenue growth forecast for FY2026 upwards to 1-3%, from the earlier 0-3%. The operating margin guidance has been maintained at 20-22%.
Strengthening Shareholder Value
Experts suggest that the share buyback will bolster Infosys's liquidity and increase the likelihood of benefits for investors. This move could also positively influence the stocks of other players in the IT sector.
According to analysts, the buyback decision reflects the company's financial strength. It will reinforce shareholder value for Infosys and further stabilize the company's market position.
