Infosys shares in focus ahead of Q4 earnings; here's what to watch out for

Shares of the country's second largest information technology (IT) company, Infosys, declined as much as 1.96% to hit an intraday low of ₹1,385.20 ahead of its March quarter earnings due later in the day. Analysts said that weakness in Infosys shares came on the back of larger selling pressure in IT space after Wipro, the country's fourth largest IT company, gave a weak forecast for its IT services segment growth for the upcoming June quarter (Q1 FY26).

For the June 2026 quarter, Wipro expects revenue from its IT Services business segment to be in the range of $2,505 million to $2,557 million. This translates to sequential guidance of (-)3.5% to (-)1.5% in constant currency terms.

Here's what to watch out for in Infosys in Q4

Market participants will closely watch out for the management commentary in challenging environment for the IT companies. The IT sector has been going through a turmoil since the start of this year owing to uncertain global macro-economic environment. The measure of IT shares on the National Stock Exchange, NIFTY IT index, has so far this year dropped 23% massively underperforming the NIFTY50 index which is down 1.33% year-to-date.

The company is expected to report a 0.9% sequential revenue decline in constant currency (CC) terms and a 1.2% dip in dollar terms, according to multiple brokerage reports. While in line with guidance, it reflects continued pressure from weak discretionary spending and project delays.

Margins are expected to decline by 80–100 bps quarter-on-quarter (QoQ), primarily due to wage hikes for junior employees and increased visa costs. Market participants will watch out for how well Infosys' Project Maximus’ efficiency gains offset these pressures.

Deal wins remain a critical metric. Infosys closed December quarter with $2.5 billion in total contract value (TCV) — a 21.9% annual decline. Investors will look for signs of pickup in March quarter and whether large deal ramp-ups are gaining traction.

As of 10:09 am, Infosys shares traded 1.99% lower at ₹1,384, underperforming the SENSEX which was down 0.05%.