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# Infosys Q2: 1.3% in Dollars, 10.7% in Rupees
- URL: https://www.moatmarginresearch.com/infosys-q2-dollar-rupee-growth/
- Published: 2026-10-24T06:32:57.000Z
- Updated: 2026-10-24T06:32:57.000Z
- Description: Infosys grew 1.3% in dollars and 10.7% in rupees in Q2 FY27, held a 21.0% margin and signed $5.2 billion of large deals; net profit fell 2.5% in dollars.
- Author: A K Karthikeyan
- Tags: Moat Insights

**Infosys earned revenue of US$5,145 million in the September quarter, 1.3% more than a year earlier; in constant currency the growth was 1.5%. In rupees the same revenue was ₹49,244 crore, up 10.7%. The difference is the exchange rate, not more work. The operating margin held at 21.0%, the company signed US$5.2 billion of large deals, and net profit in dollars fell 2.5%.**

## The quarter in numbers

| Q2 FY27                    | Value                        | Year-on-year          | Source |
| -------------------------- | ---------------------------- | --------------------- | ------ |
| Revenue, US$               | 5,145 million                | +1.3%                 | \[F\]  |
| Revenue, constant currency | —                            | +1.5%                 | \[F\]  |
| Revenue, ₹                 | 49,244 crore                 | +10.7%                | \[F\]  |
| Operating margin           | 21.0%                        | unchanged             | \[F\]  |
| Net profit, US$            | 817 million                  | −2.5%                 | \[F\]  |
| Free cash flow, US$        | 928 million                  | against 1,101 million | \[F\]  |
| Large-deal TCV             | US$5.2 billion (62% net new) | —                     | \[F\]  |

The board declared an interim dividend of ₹26 a share, with a record date of 3 November (\[B\]).

## Where growth came from, and where it did not

| Industry                                | Share of revenue | Growth, constant currency | Source |
| --------------------------------------- | ---------------- | ------------------------- | ------ |
| Financial Services                      | 28.0%            | 2.1%                      | \[F\]  |
| Manufacturing                           | 16.0%            | (0.7)%                    | \[F\]  |
| Energy, Utilities, Resources & Services | 14.2%            | 7.3%                      | \[F\]  |
| Communication                           | 12.5%            | 4.1%                      | \[F\]  |
| Retail                                  | 11.5%            | (7.7)%                    | \[F\]  |
| Life Sciences                           | 8.4%             | 32.5%                     | \[F\]  |
| Hi-Tech                                 | 6.8%             | (17.3)%                   | \[F\]  |

By geography, North America, 54.6% of revenue, shrank 1.5% in constant currency, while Europe grew 4.6% (\[F\]). Three industries shrank; Life Sciences carried the growth.

## Moat and margin

**Focus moat: client depth.** Infosys had 2,060 active clients, 42 of them paying more than US$100 million a year, against 41 a year ago; it added 142 clients in the quarter (\[F\]). Its top five clients are 12.2% of revenue, down from 13.0% (\[F\]). Large deals of US$5.2 billion, 62% of it new business, say clients are still signing long contracts (\[F\]).

**Margin: steady without growth.** The operating margin was 21.0% in both years (\[F\]). Holding the margin with almost no dollar growth points to cost control; it also leaves little cushion if pricing weakens. The company also reports AI work as 10.5% of revenue (\[F\]).

**People and cash.** Headcount was 332,542, almost the same as a year ago, and voluntary attrition fell to 12.7% (\[F\]). Days sales outstanding improved to 64 from 71 (\[F\]). Free cash flow fell to US$928 million from US$1,101 million, and consolidated cash and investments to US$4,720 million from US$6,173 million (\[F\]); the filings read do not say why.

**MoatSCORE** (Moat Screener, first pass): Infosys 4.76, AMBER+. For comparison, Tata Consultancy Services 5.15, Wipro 5.39, HCL Technologies 5.05 and Tech Mahindra 5.11 (\[MS\]).

## The bear case

- **Dollar growth is close to zero**: 1.3% reported, 1.5% in constant currency (\[F\]).
- **Three industries shrank**, Hi-Tech by 17.3% (\[F\]).
- **North America is shrinking** in constant currency (\[F\]).
- **Profit and cash fell in dollars**: net profit down 2.5%, free cash flow down from US$1,101 million (\[F\]).

## The case for

- **Large deals of US$5.2 billion**, 62% net new (\[F\]).
- **Life Sciences up 32.5%** and Energy and Utilities up 7.3% (\[F\]).
- **A steady 21.0% margin**, lower attrition and faster collections (\[F\]).

## What to watch

1. Whether the large deals turn into dollar growth above the low single digits.
2. Hi-Tech and Retail, the two biggest drags.
3. The rupee: the gap between 10.7% and 1.3% growth runs both ways.

## Sources

- **\[F\]** [Infosys, Q2 FY27 board outcome with fact sheet](https://nsearchives.nseindia.com/corporate/Infosys%5F23102026160926%5FBM%5FOutcome%5FOct232026%5F1.pdf) (NSE)
- **\[B\]** [Infosys, Q2 FY27 board outcome](https://nsearchives.nseindia.com/corporate/Infosys%5F23102026160704%5FBM%5FOutcome%5FOct232026%5F1.pdf) (NSE)
- **\[MS\]** [Moat & Margin, Moat Screener](https://www.moatmarginresearch.com/moat-screener/) and [How MoatSCORE works](https://www.moatmarginresearch.com/moatscore/)

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> Educational research, not investment advice. Every figure above is drawn from Infosys' own filings, read from the primary documents on 24 October 2026; derived figures are our arithmetic, labelled as such. MoatSCORE read live from the Moat Screener on 24 October 2026\. No buy/sell recommendations, no price targets, no share prices. Moat & Margin is not a SEBI-registered Research Analyst or Investment Adviser.