Infosys Plunges Over 1.5% as Stock Turns Ex-Dividend; Investor Caution Amid Growth Concerns

Infosys Plunges Over 1.5% as Stock Turns Ex-Dividend; Investor Caution Amid Growth Concerns​

Infosys Ltd experienced a notable decline in early trade on Wednesday, June 10, after the IT services major turned ex-dividend for its final dividend of Rs 25 per share for FY26. The stock shed 1.55 percent to settle at Rs 1,162 in morning trading, making it one of the principal laggards on the Nifty 50 index.

The fall is directly attributed to the necessary price adjustment following the ex-dividend trade status. Investors who held Infosys shares prior to the designated ex-date are eligible for this final dividend, which is subject to formal shareholder approval.

Dividend Adjustment and Corporate Payouts​

Infosys had publicly announced this final dividend on April 24, 2026, fixing June 10 as the critical ex-dividend date. Typically, a stock's price movement accounts for the cash payout upon transitioning into an ex-dividend status.

The current Rs 25 per share payment follows an earlier interim dividend of Rs 23 per share announced in October 2025. Looking back at FY25 payouts, Infosys provided shareholders with a final dividend of Rs 22 and an interim dividend of Rs 21. At current trading levels, the stock offers a dividend yield of approximately 4.07 percent.

Performance Headwinds and Market Pressure​

Despite the immediate decline linked to the ex-dividend event, the stock has been under sustained pressure over the last twelve months due to persistent worries regarding growth visibility across the IT sector. Infosys shares have declined by 26 percent in the past year, significantly outpacing the 7.4 percent decline recorded by the Nifty 50 index.

The company currently holds a market capitalization of Rs 4.89 lakh crore and is trading at a price-to-earnings multiple (P/E) of 16.54. This underlying pressure persists even as the stock adjusts for its corporate payouts.

Q4 Results and Future Guidance Highlights Uncertainty​

Investor sentiment towards Infosys became cautious following the release of its March quarter results. The company reported a net profit increase of 27.8 percent quarter-on-quarter, reaching Rs 8,501 crore in the fourth quarter. This gain was credited to margin expansion and lower tax outgo.

However, revenue only saw a modest sequential growth of 2 percent. Furthermore, the guidance provided for FY27 indicated expected revenue growth ranging from 1.5 percent to 3.5 percent in constant currency, highlighting ongoing demand uncertainty within the industry.

Brokerage Opinions Remain Divided on Future Trajectory​

Brokerages across the board present divergent views regarding the stock's immediate future. Citi has maintained a 'neutral' rating with a target price set at Rs 1,300 for the shares. Jefferies continues to hold a 'hold' rating, citing a target price of Rs 1,235.

Jefferies noted that the existing dividend yield could serve as a cushion against potential downside risk. However, the brokerage also cautioned that any significant upside may be capped due to ongoing growth concerns surrounding the company.