Infosys Maintained at HOLD by ICICI Securities with Rs 1630 Target

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AuthorRiya Kapoor|Published at:
Infosys Maintained at HOLD by ICICI Securities with Rs 1630 Target
Overview

ICICI Securities maintained its HOLD rating on Infosys, setting a target price of ₹1,630. The brokerage cited strong order book momentum and increasing AI-led demand as key drivers for projected FY27 revenue growth, which is expected to outpace FY26. Hiring trends also signal improved growth visibility.

Q3FY26 Performance & Outlook

Infosys reported its third-quarter results for FY26, showing a marginal beat on revenue but a slight miss on margins, even after accounting for a one-off 40 basis points benefit from property sale. These figures were closely watched against analyst and consensus expectations.

Growth Drivers Identified

Looking ahead to FY27, ICICI Securities anticipates revenue growth to accelerate beyond FY26 levels. This optimism is underpinned by two primary factors: robust order book momentum, which surged 30% year-on-year in the first nine months of FY25, and a discernible uptick in artificial intelligence-led discretionary demand across sectors. Financial services, energy, resources, and utilities are flagged as key industries benefiting from this trend. The brokerage has revised its FY27 and FY28 constant currency growth forecasts upwards to 4.7% and 5.7%, respectively.

Hiring Trends Signal Confidence

A notable shift observed is in hiring patterns. Infosys's total headcount has grown 4.2% year-on-year, outpacing the trailing twelve months' revenue growth of 3.3% in constant currency. This stands in contrast to previous quarters where headcount lagged revenue expansion, suggesting renewed confidence in future business visibility.

Rating and Target Maintained

Despite these developments, ICICI Securities has largely kept its Earnings Per Share (EPS) estimates unchanged. The firm reiterates a HOLD recommendation on Infosys shares with a price target of ₹1,630. This target is derived from an unchanged one-year forward Price-to-Earnings (P/E) multiple of 21 times applied to December 2027 estimated EPS of ₹78.

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