Infosys share price dips as investors await Q4 results today. Buy, sell or hold?

Infosys share price declined nearly 2% in early trade on Thursday ahead of the company’s announcement of Q4 results today. Infosys shares fell as much as 1.9% to ₹1,386.20 apiece on the BSE.

The second largest IT services company in India, Infosys will announce its Q4 results today, April 17. Along with the earnings for the fourth quarter of FY25, the IT major will also declare its earnings for the full financial year 2024-2025.

Infosys is expected to report tepid earnings in the quarter ending March 2025. underscored by a sequential drop in revenue due to seasonal weakness in demand and margin pressure.

Analysts also expect the company to deliver a muted guidance on account of weak macroeconomic conditions due to US-induced global tariff war and lack of mega deals.

“Infosys is expected to show a decline in revenue in constant currency terms, primarily due to weak demand in key markets and a loss of revenue related to third-party sales. The IT company’s margin will also likely fall due to wage hikes during the quarter, which will affect the bottom line too,” Master Capital Services said in a report.

Infosys Q4 Results: What to expect?

Infosys revenue in Q4FY25 is expected to fall 0.4% sequentially to ₹41,617 crore. Revenue in dollar terms is estimated to drop 1.6% quarter-on-quarter (QoQ) to $4,861 million, while the company’s revenue growth in constant currency (CC) terms may decline by 310 basis points (bps) to -1.4%, according to estimates by JM Financial.

Net profit of the company in Q4FY25 is estimated to fall 4.7% QoQ to ₹6,488 crore. At the operational level, Earnings Before Interest and Taxes (EBIT) in Q4FY25 is estimated to fall by 5% QoQ to ₹8,472 crore, while EBIT margin may contract by 100 bps sequentially to 20.4%.

Infosys Share Price Outlook

As per the technical charts, Sumeet Bagadia, Executive Director at Choice Broking expects more downsides in Infosys’ share price ahead of the announcement of Q4 results today.

“Infosys stock is facing a hurdle at ₹1,425 apiece and can go down to ₹1,320 per share. I recommend a sell-on-rise strategy ahead of the Q4FY25 results announcement for ₹1,330 to ₹1,320 target. However, one must maintain stop loss at ₹1,425 while taking any short position in Infy shares,” Bagadia said.

Infosys share price has dropped 13% in one month and has fallen more than 26% on a year-to-date (YTD) basis. Over the past six months, Infosys shares have declined 30%, whereas the IT stock has remained flat in one year.

However, over the long term, Infosys stock price has shown stellar gains, as the shares have delivered multibagger returns of 120% in five years.

At 9:30 AM, Infosys shares were trading 1.58% lower at ₹1,390.65 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.