Infosys share price jumped more than 3% in early trade on September 9 after the IT services giant announced that its board will meet on September 11, 2025, to consider a buyback of fully paid-up equity shares. The announcement of the Infosys Share Buyback has sparked intense interest among long-term investors. If approved, it would be the company’s sixth buyback and the first since December 2022.
The announcement, made after market hours on September 8, lifted Infosys out of a five-session losing streak. Shares opened at Rs 1,481 and surged as much as 3.64% to Rs 1,485, before settling at Rs 1,484.20, up 3.4%. Volumes were substantial, with trading at nearly three times the 30-day average.
Market analysts are closely tracking the Infosys Share Price ahead of the upcoming earnings season. The Nifty IT Index gained momentum as major tech stocks, including Infosys, posted positive updates. Infosys was the top gainer on the Nifty IT index, which rose 1.7% in morning trade and later climbed 2.3%, helped by the strength of its peers, such as Wipro, Tech Mahindra, and TCS.
Infosys last carried out a Rs 9,300 crore buyback in 2022 at a floor price of Rs 1,850 per share. Earlier programs in 2021, 2019, and 2017 saw the company repurchase more than 400 million shares.
Analysts believe the timing of this buyback is significant, as the stock is down 24% year-to-date and about 28% below its peak.
Experts say the plan could support investor confidence at a time of pressure on Indian IT stocks. According to Devarsh Vakil of HDFC Securities, the buyback occurs at a ‘crucial juncture’ when global headwinds, such as US tariffs and modest earnings growth, weigh on sentiment.
G Chokkalingam of Equinomics Research noted that Infosys, with over Rs 40,000 crore in cash, is opting to reward shareholders instead of pursuing large acquisitions.
He added that valuations look attractive, with the stock trading at a forward P/E of 20.8x, which is below its five-year average of 24.8x and lower than the Nifty IT index's multiple of 23.7x.
Global brokerage Morgan Stanley described the timing as a “signal of stability,” estimating the potential buyback size at 1.3-2% of total equity.
The Infosys Q1 Results reflected steady growth despite global economic challenges. For the June 2025 quarter, Infosys registered net profit of Rs 6,921 crore, up 8.7% year-on-year, while revenue increased 7.5% to Rs 42,279 crore. The company raised its FY26 revenue growth outlook to 1-3% in constant currency, while keeping operating margins at 20-22%.
With valuations sitting below historical averages and sector competitors, the buyback could improve return ratios and investor sentiment. During the recent Infosys Board Meeting, key decisions were taken regarding dividend payouts and future strategy.
All eyes will be on the board meeting on September 11, as the outcome could be decisive for the near-term momentum of Infosys stock.