Bengaluru: Shares of Infosys Ltd surged nearly 5 percent on October 23 after its promoters and promoter group, including Nandan M. Nilekani and Sudha Murty, decided not to participate in the company’s massive Rs 18,000-crore share buyback.

The stock climbed to Rs 1,543.90 apiece, emerging as the top gainer on the Nifty IT index, as well as on the Sensex and Nifty, reflecting renewed investor optimism in the IT major.

Infosys’ biggest-ever buyback

Infosys had announced on September 11 that its board approved a share buyback worth Rs 18,000 crore, priced at Rs 1,800 per share — its largest-ever. The buyback represents a premium of over 19 percent from the share price levels seen on the announcement day.

The move marks Infosys’ first buyback since 2022, when it repurchased shares worth Rs 9,300 crore.
A buyback is a corporate action where a company repurchases its own shares to improve shareholder value and optimise capital structure.

Promoters’ decision signals confidence

In a stock exchange filing on October 22, Infosys revealed that its promoters and promoter group would not participate in the buyback. As of September 30, 2025, they collectively held 14.30 percent in the company, while the public shareholding stood at 85.46 percent.

Among the individual promoters:

  • Nandan Nilekani holds 1.08%,
  • NR Narayana Murthy and Sudha Murty hold 0.40% and 0.91% respectively,
  • Their children Rohan Murthy (1.60%) and Akshata Murthy (1.03%) also hold notable stakes.
  • Kris Gopalakrishnan holds 0.84%, while his wife Sudha Gopalakrishnan owns 2.52%, the largest stake among promoters.

Analysts see the decision as a positive signal.

“Promoters opting out of the buyback indicates confidence in the company’s future prospects,” said Saurabh Jain, AVP – Retail Equities, SMC Global.

“It also enhances the entitlement ratio for retail investors and boosts market sentiment,” he added.

Echoing this, Anita Gandhi, Founder of Arihant Capital Markets, said, “The move reinforces investor confidence not just in Infosys but in the broader IT sector.”

Strong quarterly performance backs sentiment

Infosys’ recent Q2 FY26 results further strengthened investor enthusiasm. The IT major reported a net profit of Rs 7,364 crore, up 13.2 percent YoY from Rs 6,506 crore in Q2 FY25.
Revenue rose 8.5 percent to Rs 44,490 crore, while expenses increased to Rs 35,243 crore.

Key metrics for Q2 FY26 include:

  • Operating margin: 21%
  • Free cash flow: $1.1 billion (131.1% of net profit)
  • Large deal TCV: $3.1 billion (67% net new)
  • Employee addition: 8,203

Infosys also announced an interim dividend of Rs 23 per share, with October 27 as the record date.

Market outlook

Infosys shares have gained over 6 percent in the past week and 3 percent in the past month, although they remain down 18 percent year-to-date in 2025. The company’s P/E ratio stands at around 22.23.

Analysts believe that the buyback move, coupled with promoters’ confidence, could provide short-term momentum and improve overall sentiment for India’s IT sector.

Infosys shares jump 5% after promoters opt out of Rs 18,000-crore buyback