Infosys Shares Jump on Strong FY2026 Outlook, Lifting IT Stocks

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Shares of Infosys rose about 5% on Friday after the company unexpectedly raised its fiscal 2026 revenue forecast, boosting sentiment across India’s IT sector.

Infosys now expects revenue growth of 3%–3.5% in the year ending March 2026, up from its earlier 2%–3% outlook. The stock led gains on the Nifty 50, while the Nifty IT climbed 2.2%.

Analysts said AI-led partnerships and vendor consolidation are strengthening Infosys’s competitive position. The company has won AI-driven deals with Adobe and Siemens AG, and its large-deal order book rose to a two-year high of $4.8 billion.

At least three brokerages, including Jefferies, raised target prices after the results. The upbeat outlook follows comments from Tata Consultancy Services earlier this week pointing to solid demand in 2026, helping lift broader IT stocks, including Wipro.

Tata Technologies Q3 Profit Slumps 96% on One-Time Labour Code Charge

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India’s engineering R&D firm Tata Technologies reported a 96% plunge in third-quarter profit, mainly due to a one-time charge linked to India’s new labour codes, marking its steepest profit drop since listing in 2023.

Net profit fell to 66.4 million rupees ($731,000) in the October–December quarter from 1.69 billion rupees a year earlier. The company booked a one-off charge of 1.4 billion rupees after the new labour rules raised gratuity and leave-related liabilities.

Despite the hit, CEO Warren Harris said the company expects a sharp rebound, forecasting more than 10% sequential revenue growth in the fourth quarter. CFO Uttam Gujrati added that margin pressure seen in Q3 is now behind the firm.

Overall revenue rose 3.7% to 13.66 billion rupees, with services revenue—about 77% of total—up 4.7%. Peer firms including TCS and HCLTech have also reported similar labour-code-related charges.

FitzWalter Raises Auction Technology Buyout Bid to $658 Million

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Private equity firm FitzWalter Capital has increased its takeover offer for Auction Technology Group to 491 million pounds ($658 million), after the company rejected multiple earlier bids.

The new proposal values Auction Technology at 400 pence per share, an 11% increase from FitzWalter’s previous 360 pence offer. Shares in Auction Technology jumped as much as 15% following the announcement, after having lost nearly half their value in 2025.

FitzWalter, which owns over 21% of the company, has criticised Auction Technology’s management for poor engagement and for margin pressure following the acquisition of U.S. marketplace Chairish. Auction Technology has described the bids as “opportunistic” and said they undervalue the business.

One major shareholder told Reuters the latest offer still fails to reflect the company’s intrinsic value. FitzWalter has urged shareholders to push the board to negotiate before a February 2 deadline, after which it must make a firm offer or walk away.