Infosys Q2FY27 profit up 6%, dividend ₹26, guidance cut

Key takeaways from Infosys’ September-quarter update

Infosys Ltd reported its second-quarter FY27 numbers on October 23, showing a year-on-year rise in profit and revenue, while management turned cautious on full-year revenue growth. Consolidated net profit for Q2FY27 came in at ₹7,823 crore, up 6% year-on-year (YoY) from ₹7,364 crore in the same quarter last year. Revenue from operations rose 11% YoY to ₹49,244 crore, compared with ₹44,490 crore in Q2FY26.

Alongside the results, the board declared an interim dividend of ₹26 per equity share. Infosys also lowered its FY27 revenue growth guidance in constant currency (CC) terms to 1%-2%, from the earlier 1.5%-3% band, citing a challenging demand environment. Operating margin guidance for the full year was retained at 20%-22%.

Profit rises 6% YoY, nearly flat sequentially

The company’s consolidated net profit of ₹7,823 crore in Q2FY27 was marginally higher than the preceding quarter’s ₹7,769 crore, a 0.7% quarter-on-quarter (QoQ) increase. This sequential trend indicates a relatively steady profit line even as demand conditions remain volatile, as described by the company.

On a YoY basis, the increase was clearer, with profit up from ₹7,364 crore in Q2FY26. The quarter under review ended September 30, 2026, and the performance was disclosed through regulatory filings.

Revenue growth: 11% YoY and 2.1% QoQ

Infosys reported revenue from operations of ₹49,244 crore in Q2FY27, marking a 10.7%-11% rise over the year-ago quarter figure of ₹44,490 crore. Sequentially, revenue rose 2.1% from ₹48,211 crore in Q1FY27.

The company also disclosed that revenue in constant currency terms grew 1.5% YoY and 1.2% QoQ. These constant currency figures matter for investors tracking underlying demand and execution, as they adjust for currency movement effects.

Margin and operating performance indicators

On the operating front, EBITDA stood at ₹10,330 crore in Q2FY27, increasing 10.45% YoY from ₹9,353 crore in Q2FY26. The company’s EBIT margin was reported at 20.98%, contracting 5 basis points YoY from 21.02% in the year-ago quarter.

The company also pointed to operating margins of 21.0% in Q2 amid what it described as heightened volatility. For the full financial year, Infosys retained its operating margin guidance at 20%-22%.

Interim dividend: ₹26 per share, record date set

Infosys declared an interim dividend of ₹26 per equity share. In its exchange filing, the company set November 3, 2026 as the record date. The payout date was stated as November 11, 2026.

The interim dividend of ₹26 per share compares with ₹23 per share in the year-ago period, as referenced in the disclosures. For shareholders, the record date determines eligibility, while the payout date indicates when the amount is expected to be credited or dispatched.

FY27 guidance revised lower on demand challenges

The most closely watched update was the revision to FY27 revenue growth guidance. Infosys trimmed its constant currency revenue growth band to 1%-2% for FY27, from the earlier 1.5%-3% range. The company attributed the cut to a challenging demand environment.

While the revenue guidance was revised down, the operating margin guidance was left unchanged at 20%-22%. The combination suggests that the company is aiming to protect profitability even as growth expectations have been moderated.

Additional disclosures: free cash flow and first-half trend

Infosys reported free cash flow of $928 million for the quarter, stating that it represented 113.3% of net profit. Such a metric is typically tracked to assess cash conversion relative to reported earnings.

For the first half of FY27, revenue growth was stated at 1.9% in constant currency terms, with an operating margin of 21%. These first-half numbers provide context for the revised full-year view, especially as the company recalibrates growth expectations.

Snapshot table: Q2FY27 vs Q2FY26 and key dates

Market impact: what investors will likely track

The guidance cut to 1%-2% in constant currency terms is a key data point because it resets expectations for FY27 growth. Infosys explicitly linked the revision to a challenging demand environment, which helps explain why growth outlook changed even as reported YoY revenue rose.

At the same time, the company retained its operating margin guidance of 20%-22% and reported an EBIT margin of 20.98% for Q2FY27. For market participants, the combination of moderated growth and stable margin targets can influence how they assess execution priorities, such as cost control and delivery efficiency.

Why this quarter matters for the broader IT services narrative

The quarter’s constant currency growth of 1.5% YoY, along with the revised FY27 guidance, places attention on the pace of demand recovery and the visibility of client spending. Infosys’ commentary around a challenging demand environment mirrors the cautious tone typically seen when decision cycles lengthen or discretionary spending remains tight.

The interim dividend declaration of ₹26 per share, along with the specified record and payout dates, adds a shareholder-return element to the update. The company also highlighted free cash flow of $928 million and its relationship to net profit, reinforcing the cash-generation aspect of the quarter.

Conclusion

Infosys reported Q2FY27 net profit of ₹7,823 crore and revenue of ₹49,244 crore, announced an interim dividend of ₹26 per share, and trimmed FY27 constant currency revenue growth guidance to 1%-2% while retaining margin guidance at 20%-22%. The next investor checkpoint will be the dividend record date on November 3, 2026, followed by the scheduled payout on November 11, 2026.