According to experts, Infosys could report low single-digit growth in revenue and net profit on a sequential basis.
Infosys’ net profit may range between ₹7,350 to ₹7,420 crore, up 1% to 2% sequentially and 7 to 9% on a yearly basis. The company reported a net profit of ₹7,364 crore in the previous quarter and ₹6,806 crore in the same quarter last year.
As per experts, Infosys Q3 revenue could increase by 1 to 2% on a sequential basis to ₹44,950 to ₹45,206 crore. The company registered revenues of ₹44,490 crore in Q2FY26 and ₹41,764 crore in the December quarter of FY25. On a yearly basis, revenue could increase by 7 to 8%, aided by deal ramp-ups, continued growth in the financial services vertical and contributions from new acquisitions.
The company’s EBIT margin is expected to remain flat in the range of 21% to 21.2%, while Infosys’ total contract value (TCV) is likely to be around $4.5 to $5 billion during the quarter.
Investors will be closely monitoring any changes to Infosys’ FY26 revenue guidance. New deals won during the December quarter and management’s commentary on IT discretionary spending, will also be closely watched.
Ahead of the Q3 result announcement, Infosys shares were trading 0.3% higher at ₹1,600 on January 14. The stock is down over 18% in the last 1-year.
Technical outlook
After a sharp run-up, Infosys is consolidating near the 50-day EMA (around 1,588) and just above the 200-day EMA (around 1,578). The crucial zone around 1,575-1,585 is providing important near-term support. As long as Infosys remains above this range, the medium-term outlook remains positive.
On the upside, the 1,630-1,650 zone has emerged as an area of resistance. A decisive close above 1,650 would suggest a resumption of the trend and could pave the way for a move towards 1,680-1,700.
Options outlook
The options data of Infosys 27 January expiry reflects a significant call base from 1700 to 1660 strikes, indicating resistance for the stock around these zones. Meanwhile, a significant put and call base was also observed at the 1600 strike, indicating consolidation around this zone.
Additionally, the at-the-money strike is at 1,600, with the combined premium of the call and put options quoted at ₹70. This indicates that, ahead of the 27 January expiry, the options market is anticipating a potential ±4.2% movement in Infosys
Let’s examine how Infosys stock has reacted to its quarterly earnings announcements over the past two years to gain insights into its price movements.
Options strategy and approach
Ahead of the 27 January expiry, the options market is implying a potential price move of around ±4.2% in Infosys. Traders can form a base for their strategy on whether they anticipate a breakout or a calm outcome post earnings.
If you anticipate a significant price movement, a long straddle strategy could be appropriate. This involves buying an at-the-money call and put with the same expiry date. This approach allows you to benefit if volatility increases and the stock price moves decisively (±4.2%) in either direction.
However, if you think Infosys is likely to stay within the ±4.2% range, a short straddle may be more appropriate. This strategy benefits from time decay and falling volatility, provided the stock price remains stable until the option expires.