Introduction: Why Infosys Buyback Matters Now
The declaration by Infosys of the Buyback 2025 has touched off excitement in India’s stock showcase. Infosys Restricted, the second-largest IT administrations company in the nation, reported on September 8, 2025, that it had a assembly planned at the Board of Executives level for September 11, 2025, to consider a proposition for the Company to purchase back its completely paid-up value shares.
This blog provides a complete breakdown of the Infosys buyback — the rationale, historical context, market reaction, and how investors can participate.
Infosys Buyback 2025: The Official Announcement
The Board Meeting Date and Status
On September 8, 2025, Infosys filed with the BSE that its board would meet on September 11, 2025 to discuss a buyback proposal. The exact language was “consider a proposal,” which means while buyback is expected, it is not confirmed until board approval.
Investors must carefully note this distinction — market optimism is based on the expectation of approval. The official decision will be communicated to stock exchanges after the meeting.
Key Buyback Details Awaited
Currently, the following critical information is pending:
Buyback Offer Price – The price Infosys will repurchase its shares. Historically, buybacks are at a premium.
Total Buyback Size – The total capital allocation in rupees.
Record Date – The cutoff date for shareholder eligibility.
Buyback Type – Either Tender Offer (fixed premium, proportionate buy) or Open Market (repurchases at prevailing market price).
Infosys Buyback 2025 – Current Status
| Detail | Status |
|---|---|
| Proposal Status | Under Board consideration |
| Meeting Date | September 11, 2025 |
| Offer Price | To be announced |
| Buyback Size | To be announced |
| Record Date | To be announced |
| Type | To be announced |
Why Infosys is Planning a Buyback
Robust Balance Sheet and Cash Flows
Infosys has kept its shareholder return discipline, returning approximately 85% of its free cash flow primarily through dividends and buybacks while distributing just 15% in acquisitions over the past five years. With ₹40,000 crore of cash on hand and no debt on the balance sheet (as of March 31, 2025), it is in a good position to implement a buyback of this size.
Instead of insisting on acquisitions in a tough macroeconomic environment, Infosys is now planning to return capital – the clear implication being that the company believes returning capital to shareholders is the best use of capital at this time.
Signaling Strong Price Confidence
Infosys’s share price was down 25% in the past year and down 24% year-to-date (2025). It is now valued at a forward P/E of 20.8x, lower than the company’s five-year average (24.8x) and the Nifty IT index (23.7x).
By commencing a buyback, Infosys is sending a signal:
The stock is undervalued.
The company has confidence in its fundamental outlook.
They want to restore investor confidence.
Infosys Buyback History: A Proven Strategy
Infosys has a track record of rewarding investors with buybacks.
Infosys Share Buybacks Over the Years
| Year | Amount (₹ crore) | Type | Price |
|---|---|---|---|
| 2017 | 13,000 | Tender Offer | ₹1,150 |
| 2019 | 8,260 | Open Market | Avg. ₹747 |
| 2021 | 9,200 | Open Market | Max ₹1,750 |
| 2022 | 9,300 | Open Market | Max ₹1,850 |
From this history, Open Market buybacks have been more common recently, suggesting that 2025 might follow the same pattern. This matters for retail investors since tender offers guarantee a fixed price premium and 15% reservation for small shareholders, while open market buybacks do not.
Market Reaction to Infosys Buyback News
Share Price Surge
Sector Context
The buyback comes amid IT sector headwinds:
Nifty IT index has dropped 19% over the past year.
FIIs sold ₹19,901 crore in July 2025 and another ₹11,285 crore in August 2025 from IT stocks.
Concerns include US tariffs, H1-B visa regulations, and reduced enterprise tech spending.
The buyback is seen as a stabilizer in this volatile environment.
How Investors Can Participate in Infosys Buyback
Tender Offer vs. Open Market
Tender Offer – Fixed premium price, proportionate acceptance. 15% reserved for retail (holdings under ₹2 lakh).
Open Market – Company buys from stock exchanges at prevailing price (up to a maximum). No guaranteed acceptance for investors.
Significance of Record Date
To qualify, investors must own Infosys shares in their Demat account prior to the record date (undetermined).
Process (if Tender Offer selected)
Hold shares prior to record date.
Login to your broker platform (e.g., Zerodha Console > Corporate Actions > Buyback).
Tender shares by submitting the form.
Wait for acceptance ratio – not all shares may be accepted.
Funds credited to bank account for accepted shares.
Financial Performance: Infosys Fundamentals Remain Strong
Despite stock weakness, Infosys’s Q1 FY26 results were solid.
Infosys Q1 FY26 Snapshot
| Metric | Value |
|---|---|
| Net Profit (YoY) | ₹6,921 crore (+9%) |
| Revenue (YoY) | ₹42,279 crore (+8%) |
| CC Revenue Growth | 3.8% |
| New Deal Wins | $3.8 billion |
| Operating Margin | 20.8% |
This shows the buyback is not to cover weak performance but to capitalize on undervaluation.
Analyst Views and Technical Indicators
Valuation Metrics
| Company/Index | P/E Ratio |
|---|---|
| Infosys | 20.8x |
| Nifty IT | 23.7x |
| Infosys 5-Yr Avg | 24.8x |
Infosys trades at a discount, supporting the undervaluation thesis.
Technical Analysis
The stock is trading below the 50-day and 200-day SMAs; this implies bearish momentum for this stock. Resistance is shown at ₹1,484 and ₹1,502. A buyback may serve as the impetus to rule out resistance and drive the stock higher.
Impact of Buyback on Investors and EPS
The Infosys buyback will:
Boost EPS by reducing outstanding shares.
Enhance valuations by showing confidence in fundamentals.
Support share price in a weak IT environment.
For long-term investors, this signals stability and strong capital discipline.
Conclusion: Infosys Buyback as a Confidence Booster
The Infosys Buyback 2025 is not just another corporate action – it is a strategic initiative to instill confidence in investors, reward shareholders, and draw attention to the undervaluation in an uncertain market.
Key points to note:
Board meeting on September 11, 2025 will approve the final details.
Offer price, size, type, and record date are awaited.
Strong financials back the move, with ₹40,000 crore in reserves.
Market has already responded positively with a share price surge.
For investors, the buyback represents a golden opportunity to benefit from Infosys’s confidence in its own value. Whether executed via Tender Offer or Open Market, the buyback is set to be a pivotal moment for India’s IT giant.