Infosys (INFO IN): Downgrade to Hold: 1QFY27 – Hitting a weak patch

研报英文原文证据摘录

Infosys (INFO IN): Downgrade to Hold: 1QFY27 – Hitting a weak patch

) 31.0 34.3 35.3 33.7

INFY stock is trading in line with Wipro, and 7%, 20%, and 30% discounts to TCS, HCLT,

52-WEEK PRICE (INR)and TechM. This reduces downside risk significantly. However, lack of triggers in the near

term and likely weak outlook for the next few quarters may keep valuations suppressed. 1800.00

Revised guidance doesn’t appear conservative: One large client ramp-down is yet to 1345.00

fully flow through and management mentioned spill-over weakness in 2Q on the call as 890.00

07/25 01/26 07/26

well. Still, implied growth for 2Q (based on full-year guidance) doesn’t seem very Target price: 1110.00

High: 1689.80 Low: 985.30 Current: 1052.10

conservative. Even at the mid-point of the revised guidance, implied 2Q revenue growth

Source: LSEG IBES, HSBC estimates

acceleration (c2.5% q-o-q) seems optimistic.

Other highlights and management comments: Yogesh Aggarwal*

Head of Research, India

◆ 1Q revenue of USD5,082m rose 1% q-o-q in cc terms. Consensus was at HSBC Securities and Capital Markets (India) Private Limited

USD5,108m. Operating margin of 21.1% was higher than consensus (20%). Large- yogeshaggarwal@hsbc.co.in

+91 22 2268 1246

deal TCV was USD3.6bn, with a book-to-bill (BBR) of 0.7x.

Prateek Maheshwari*, CFA

◆ FY27 operating margin guidance was maintained at 20-22%. This guidance bakes in Analyst, India IT Services

HSBC Securities and Capital Markets (India) Private Limited

the impact of wage hikes (in October for most employees) and January (senior prateek.maheshwari@hsbc.co.in

management), productivity pass throughs, AI investments, and 50bp impact from +9198 1937 0718

acquisitions (Optimum healthcare and stratus global), partly offset by efficiencies Sagar Desai*