Infosys Signals Confidence with Rs 18,000 Crore Share Buyback Program

On September 11, 2025, Infosys, one of the top providers of IT services in India, announced its biggest-ever share repurchase scheme, totaling Rs 18,000 crore. In this buyback, 10 crore equity shares would be repurchased at a price of Rs 1,800 each, which is 19% more than the closing price on the day before to the announcement. 2.41% of the company's paid-up stock capital will go toward the buyback.

Despite a muted revenue outlook amid industry and macroeconomic challenges like decreased client spending and disruptions from artificial intelligence, Infosys has demonstrated confidence in its long-term cash flows and growth prospects with its fifth buyback in the last eight years and its first in three.

Since the open market buyback technique has been phased out due to recent regulatory changes, the buyback will be carried out through a tender offer. In addition to providing shareholders with a tax-efficient payout in contrast to dividends, the move is anticipated to enhance important financial indicators, including earnings per share (EPS) and return on equity (ROE). Additionally, Infosys aims to optimize its capital structure by utilizing its substantial cash reserves, which, as of June 2025, exceeded Rs 42,000 crore.

This buyback is seen favorably by analysts, who point out that it might help the stock price during the current challenges on IT companies brought on by tariffs, global uncertainties, and cautious customer spending. Although there may be short-term volatility, Infosys buybacks have historically been followed by increases in the share price over a few months.

This sizable buyback strengthens the company's capital return program, which calls for allocating a sizable amount of free cash flow to shareholders. While navigating difficult market conditions, Infosys can reward investors thanks to its strong cash position and consistent free cash flow.