Synopsis: IT stock shares rose 4% after receiving tax assessment orders that may result in a Rs. 1,745 crore refund, potentially boosting quarterly profit and cash flow despite no impact on core operations.
The shares of this company provides consulting, technology, outsourcing and next-generation digital services to enable clients to execute strategies for their digital transformation are in the spotlight after it rose by 4% in today’s session following expectations of a huge amount of Income Tax Refund.
With a market capitalisation of Rs. 5,23,901 cr, the shares of Infosys Ltd were trading at Rs. 1,291 per share, surging 4% in today’s market session, making a high of Rs. 1,303.20 per share, up from its previous close of Rs. 1,251.20 per share.
What’s the News
Infosys Limited has informed that it has received multiple income-tax assessment orders from the Income-tax Department for assessment years 2013–14, 2017–18, 2018–19, 2019–20, 2020–21, and 2021–22. These orders were issued under Sections 250 and 254 of the Income-tax Act, 1961.
Based on these orders, Infosys expects to receive a cumulative tax refund of about Rs. 1,745 crore, including interest. The refund relates to disputes or excess tax payments from previous years that have now been resolved in the company’s favour.
The company received the orders for FY18 and FY19 on March 26 and 27, 2026, while the remaining orders were received on March 31, 2026. Infosys is currently evaluating how this refund will affect its financial statements for the quarter and full year ended March 31, 2026.
If recognised in the current quarter, the refund could provide a one-time boost to Infosys’ profit and cash flow, although it would not materially change the company’s core business performance.
About the company
Infosys Limited is one of India’s largest information technology companies, providing consulting, software development, digital transformation, cloud, and outsourcing services to clients across industries worldwide. The company serves businesses in over 50 countries and is known for its strong presence in IT services, artificial intelligence, and enterprise technology solutions.
Sales of the company rose from Rs. 44,490 cr in Q2FY26 to Rs. 45,479 cr in Q3FY26. Operating profit increased slightly to Rs. 10,634 cr from Rs. 10,535 cr. Net profit fell from Rs. 7,375 cr to Rs. 6,666 cr over the same period.
It has highlighted several industry-specific agentic AI deployments across major global clients. Rolls-Royce used a multi-agent solution for MRO repair procedures, achieving a 40% reduction in engineering effort, improving first-time-right rates from under 40% to 75%, and generating a multimillion-pound revenue uplift. GE Vernova partnered with Infosys to deploy more than 25 AI agents in production.
In a major deal with BP, Infosys is supporting over 50 AI and agentic AI initiatives, resulting in 18% improvement in IT operations efficiency, 50% faster contract validation, and 95% payment accuracy. Ralph Lauren implemented an AI stylist trained on 50 years of archives, leading to a 50% rise in styling interactions and supporting a 12.2% increase in revenue.
Meanwhile, Finland-based logistics company Posti Group adopted more than 20 AI initiatives with Infosys, enabling 50% software generation through AI tools, a 35% productivity improvement, and a 70% reduction in mean time to resolution.
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