Infosys Ltd, India’s second-largest IT services company, has announced its biggest-ever share buyback program worth ₹18,000 crore, aimed at enhancing shareholder returns and optimizing capital allocation. The board approved the buyback on September 11, 2025, offering to repurchase shares at ₹1,800 apiece—a 19% premium over the current market price of ₹1,512. This move marks Infosys’ fourth buyback since 2017 and reflects the company’s strong cash reserves and confidence in long-term growth.
The buyback will be executed via the open market route through stock exchanges and is expected to commence in October 2025. Infosys plans to repurchase up to 10 crore equity shares, representing approximately 2.41% of its total paid-up equity capital.
“This buyback underscores our commitment to delivering consistent value to shareholders while maintaining financial discipline,” said Infosys CFO Nilanjan Roy during the post-board meeting briefing.
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🧭 Infosys Share Buyback Timeline and Key Details
| Event | Date | Description |
|---|---|---|
| Board Approval | September 11, 2025 | Buyback of ₹18,000 crore approved |
| Buyback Price | ₹1,800 per share | 19% premium over CMP |
| Buyback Route | Open market | Through stock exchanges |
| Buyback Start Date | October 2025 | Final date to be announced |
| Buyback Size | Up to 10 crore shares | 2.41% of equity capital |
| Last Buyback | March 2022 | ₹9,200 crore via tender offer |
Infosys has returned over ₹54,000 crore to shareholders through buybacks and dividends since FY2018.
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🔍 Buyback Impact on Shareholders and Market Sentiment
| Parameter | Value / Description | Implication |
|---|---|---|
| Current Market Price (CMP) | ₹1,512 | Buyback at ₹1,800 offers 19% upside |
| Buyback Premium | ₹288 per share | Attractive for long-term holders |
| EPS Boost | Expected post-buyback | Fewer shares, higher earnings per share |
| ROE Improvement | Capital efficiency enhancement | Positive for valuation metrics |
| Sentiment Indicator | Stock up 7% in 2 sessions | Bullish investor response |
The buyback is expected to improve Infosys’s return ratios and support stock price stability amid global IT headwinds.
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📉 Infosys Financial Snapshot (FY2025)
| Metric | Value (₹ crore) | YoY Change (%) |
|---|---|---|
| Revenue | ₹1,68,450 | +9.2% |
| Net Profit | ₹26,320 | +6.8% |
| Free Cash Flow | ₹33,100 | +11.5% |
| Cash & Equivalents | ₹42,800 | — |
| Dividend Payout | ₹6,500 | — |
Infosys maintains a strong balance sheet with zero long-term debt and robust cash generation.
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📦 Infosys Buyback History
| Year | Buyback Size (₹ crore) | Buyback Price (₹) | Route | Shares Bought (crore) |
|---|---|---|---|---|
| 2017 | ₹13,000 | ₹1,150 | Tender Offer | 11.3 |
| 2019 | ₹8,260 | ₹800 | Open Market | 10.3 |
| 2022 | ₹9,200 | ₹1,750 | Tender Offer | 5.25 |
| 2025 | ₹18,000 | ₹1,800 | Open Market | Up to 10 |
The 2025 buyback is Infosys’s largest in terms of value and second-largest in terms of share count.
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🔥 Strategic Rationale Behind the Buyback
- Capital Optimization: Efficient use of surplus cash to reduce equity base and enhance shareholder returns.
- Market Confidence: Signals management’s belief in long-term value creation and stock undervaluation.
- EPS Accretion: Fewer outstanding shares lead to higher earnings per share, boosting valuation.
- Dividend Complement: Buyback complements Infosys’s consistent dividend payout policy.
- Global Benchmarking: Aligns Infosys with global tech peers like Apple and Microsoft in capital return strategy.
Infosys’s buyback aligns with its capital allocation framework, balancing growth investments and shareholder rewards.
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🧠 Expert Commentary on Infosys Buyback
| Expert Name | Role | Comment |
|---|---|---|
| Meera Iyer | IT Sector Analyst | “Infosys’s buyback is a strong signal of balance sheet strength and shareholder focus.” |
| Rajiv Bansal | Equity Strategist | “The premium is attractive, and the open market route offers flexibility.” |
| Dr. Rakesh Sinha | Corporate Governance Expert | “Infosys continues to set benchmarks in transparency and capital discipline.” |
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📅 Upcoming Milestones for Infosys
| Event | Date | Strategic Importance |
|---|---|---|
| Buyback Launch | October 2025 | Execution begins via stock exchanges |
| Q2 FY2026 Results | October 18 | Key for assessing margin trends |
| AGM | November 2025 | Shareholder engagement and updates |
| Buyback Completion | December 2025 | Final tally of shares repurchased |
Infosys is also expected to announce new AI and cloud partnerships during its quarterly earnings call.
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📌 Conclusion
Infosys’s ₹18,000 crore share buyback—the largest in its history—underscores the company’s commitment to shareholder value and financial prudence. With a 19% premium over market price and a robust execution plan, the buyback is poised to enhance earnings per share, improve return ratios, and boost investor sentiment. As Infosys continues to navigate global IT challenges with resilience and innovation, this strategic move reinforces its position as a benchmark in corporate governance and capital allocation.
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Disclaimer: This article is based on publicly available board announcements, financial reports, and expert commentary as of September 12, 2025. It is intended for informational purposes only and does not constitute investment advice.
