Infosys Market Value Drops ₹2 Lakh Cr, Exits Top 10 List; What’s Behind Infosys' Fall?

India’s information technology (IT) bellwether Infosys is facing a sharp reset in investor perception. Once seen as a steady blue-chip compounder, the company has slipped out of India’s top 10 most valued firms after losing over ₹2 lakh crore in market value this year.

Infosys shares have been down around 30% so far in 2026, with the latest fall triggered after its quarterly results. Shares declined nearly 7% in a single session post-earnings.

As of 27 April 2026, the stock was trading at ₹1,174.80, up 1.75% at 12.10 PM. Even so, it remains lower by 9.91% over the past five trading days.

Infosys now has a market capitalisation of about ₹4.9 lakh crore. In comparison, Life Insurance Corporation of India has moved ahead with a valuation of around ₹5.1 lakh crore, reflecting a shift in the top 10 rankings.

Why Did Infosys Exit The Top 10 List?

The immediate trigger was not weak earnings, but weaker expectations.

Infosys reported March-quarter revenue of ₹46,402 crore, up 13% year-on-year. Net profit came in at ₹8,501 crore, ahead of estimates. Despite this, the stock corrected sharply.

The reason lies in guidance. The company expects revenue growth of just 1.5% to 3.5% in constant currency for FY27. This was below market expectations and reinforced concerns that growth may remain slow for some time.

Demand remains muted as clients continue to cut discretionary spending and focus on cost optimisation. This shift has reduced visibility on large, high-value deals that traditionally drove growth.

At the same time, vendor consolidation is picking up, with clients working with fewer partners to improve efficiency.

Is AI Changing The IT Services Business Model?

Artificial intelligence (AI) is emerging as both an opportunity and a challenge for IT services firms. Infosys has stepped up its focus on artificial intelligence in recent quarters. It has built platforms such as Topaz and expanded internal use, with more than 30,000 developers now working with these tools.

This has started to create opportunities in areas like cloud, data and automation.

At the same time, the impact is not one-sided. As efficiency improves, part of the benefit is being passed on to clients. That is putting some pressure on billing in traditional service lines.

Also Read - Why Mutual Fund Exit Loads Are Falling Across Equity Schemes

What Lies Ahead For Infosys?

Deal activity remains steady. Infosys signed contracts worth $14.9 billion in FY26, a 24% increase from the previous year. A large portion of these were new deals.

This points to continued client interest, even though project timelines may be taking longer to play out. The stock now trades at around 18 times forward earnings, lower than earlier levels.

Still, the bigger question remains unresolved. Investors are now evaluating how the IT services model evolves in an AI-led environment.

Sources:

The Economic Times

Outlook Business