Indian software services powerhouse Infosys Ltd. has unveiled plans to repurchase up to 180 billion Indian rupees ($2 billion) of its own shares, a move designed to return capital to investors following a year of disappointing stock performance. The company’s board approved the buyback of as many as 100 million shares at a price of 1,800 rupees each, significantly above Thursday’s closing price of 1,509.70 rupees. This marks Infosys’ first share repurchase in nearly three years and highlights management’s commitment to bolstering investor confidence amid a challenging macroeconomic backdrop.
The decision comes as Infosys navigates a period of slower growth, forecasting sales increases of just 1% to 3% on a constant-currency basis for the fiscal year ending March 2026. The slowdown reflects a broader pullback in corporate spending on information technology projects as companies prepare for geopolitical tensions and economic uncertainty. Analysts from Morgan Stanley noted the timing of the buyback is particularly noteworthy, given the elevated levels of macroeconomic risk, including trade policy pressures stemming from the U.S. and geopolitical instability worldwide.
Infosys shares have tumbled roughly 20% this year, contrasting sharply with gains in the broader Mumbai stock market. The company, which ranks as India’s second-largest IT services provider, has faced headwinds as clients curtail large-scale projects amid heightened uncertainty. Nonetheless, management is betting on the transformative potential of digital services and emerging technologies such as automation, cloud computing, and generative artificial intelligence to drive revenue growth and win larger deals from multinational corporations.
The firm and its Indian peers initially gained prominence by offering cost-effective back-office solutions to North American and European clients. Today, they are increasingly leveraging technology to expand their value proposition, aiming to capture higher-margin opportunities in consulting, AI, and cloud-based enterprise solutions. The share repurchase signals a vote of confidence by Infosys’ leadership that, despite near-term market turbulence, the company’s strategic investments will position it for long-term growth and renewed shareholder returns.
As the buyback moves forward, investors will be watching closely to see if the capital return strategy can help stabilize shares and reinforce confidence in Infosys’ ability to navigate a shifting global IT landscape.
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