infosys Q2FY25 result earnings came largely in line with our projections. Revenue reached INR 4,09,860 Mn, reflecting a 5.1% YoY increase (+4.3% QoQ), in line with our estimates, driven by broad-based growth across key verticals and regions. EBIT of INR 86,490 Mn grew by 4.5% YoY (+4.4% QoQ), in line with our projections; EBIT margins remained flat QoQ at 21.1%, however, seeing a marginal drop of 12bps YoY. PAT jumped by 4.8% YoY (+2.2%QoQ) to INR 65,160 Mn; PAT margins declined by 4bps YoY (-31bps QoQ) to 15.9%.

Outlook

We project FY26E EPS of INR 72.8 assigning a P/E of 29.0x (in line with TCS FY26 P/E), to arrive at a TP of INR 2,110 (previously: INR 1,933) reflecting INFO’s robust growth across verticals, pick-up in the BFSI segment, and improving discretionary spending boosted by recent rate cuts. Accordingly, we retain an “ACCUMULATE” rating on the shares of Infosys Ltd.