Analysts highlighted that infosys, with cash reserve of ₹ 45,200 Crore in Q1 FY26, Typically Deploys 25–33% of its reserves for buybacks. , Photo Credit: Vivek Prakash/Reuters

A day after infosys, India’s second largest it services company, Announced a Share Buyback Scheme Worth ₹ 18,000 Crore at the Rate of ₹ 1,800 per share, Brokerage Said a votidenalled a votoid Its long-term future.

Late on Thursday night, Infosys Had Announced Its Share Buyback Scheme that would ‘Not Exced 25 PERCED 25 PERCED This would mean that the company would buy Buy Back 10 Crore Shares of the 414.9 Crore Shares Outstanding.

Brokerage upbeat; Execution likely in 3–4 months

While infosys was sums to disclose the Timelines for Executing The Buyback Program, Several Brokerage, Including Morgan Stanley, InvestEC, and Nomura, WERE UPBEAT Over the Move. Morgan stanley noted that the company typically takes 3-4 months to Execute such a scheme.

Infosys has previously brought back back 33.97 Crore Shares in the Past, In Four Such Schemes, Spending Cumulatively ₹ 39,760 Crore in the process. At the end of last Quarter, Q1 FY26, The Company Had Cash and Cash Equivalents of ₹ 45,200 Crore. Analysts pointed out that historically, the company has spent about a Quarter to a Third of its cash reserves in Previous Buyback Schemes, Too.

Buyback Seen as Confidence Signal Despite 20% Stock Fall

According to Hariprasad K, A SEBI-Registered Research Analyst and Founder of Livelong Wealth, A Share Buyback at a Premium is One of the Clearest Ways for MANAGENT to Communicate ITS COMUNCTE COMMNICATE COMUNCTE COMMUNCATE in the Fut.

Despite a challenging year that Saw infosys’ Stock declinear nearly 20%, the company’s strong cash positions it to reward sharehlders white signalling that it is current Valuations, He said.

“Infosys has decided headwinds in the past year due to slowing discretionary technology spending, regulatory uncertainti in the US, and the sector-wide transition toward ai-also Weighed on Sentiment, Keeping The Stock under pressure. Credibility as a trusted it partner. The Buyback Reflects Management’s View that These Strengths will translate into sustained growth as technology and ai adoption also Opportunities, “Hariprasad Added.

Nomura, Investec, Clsa Share Mixed Views

While nomura reiterated its buy call on the stock, it pointed out that the buyback was in line with the company’s policy of returning 85 per cent of free cash flow with Infosys has been nomura’s top pick in the large-cap it space, with the brokerage expecting the company to see a 3.8 per cent yoy dollar growth in reveal for the curren. Investec, on the other hand, pointed out that the buyback will lead to lower dividends in the current year.

Clsa, in its commentary, said that the buyback will support infused stock during a seasonally weak h2 fy26. It noted that with no major change in demand outlook, cost optimization remain key.

Infosys’ Shares Closed today at 1,525.55 on the bse, up by 1.06%.

Published on September 12, 2025