Infosys Ltd shares rallied over 2% in early trade on Thursday after the IT services major announced a substantial ₹18,000 crore share buyback, its largest to date, in a move aimed at returning surplus capital to shareholders and boosting investor confidence.
The company’s board has approved the repurchase of up to 10 crore fully paid equity shares, representing approximately 2.41% of its total paid-up capital. The buyback will be conducted via the open market route at a maximum price of ₹1,800 per share, nearly 19% above Wednesday’s closing price of ₹1,509.50 on the BSE.
Following the announcement, Infosys stock opened higher and touched an intraday high of ₹1,544.65, before settling around ₹1,532 by 9:20 AM.
This marks the fifth buyback by the Bengaluru-based IT giant and nearly doubles the value of its 2022 program, which was capped at ₹9,300 crore. Backed by a strong balance sheet and steady cash flows, with a reported free cash flow of $884 million (₹7,805 crore) for the quarter ended June 2025, the company is well-positioned to fund the buyback without impacting its operational investments.
In a parallel development, Infosys also announced a long-term strategic partnership with U.S.-based HanesBrands Inc. The 10-year engagement is aimed at enhancing productivity and driving efficiency through AI-led digital transformation initiatives. This deal signals Infosys’ continued push to deepen client relationships and scale its AI offerings across verticals.
Despite the positive momentum, Infosys shares remain under pressure on a longer horizon, having declined 19% year-to-date and around 21% over the last 12 months. However, analysts view the buyback and the new client win as strong signals of management’s confidence in the company’s fundamentals and growth roadmap.
As India’s IT sector continues to navigate global macroeconomic headwinds, strategic moves like these could help Infosys sustain investor interest and reinforce its commitment to long-term value creation.