Key Points:
- Infosys share buyback to be reviewed on Sept 11.
- Strong 5-year buyback record.
- 85% cash flow returned via dividends/buybacks.
Bengaluru-based IT services leader to decide on buyback plan during September 11 board meeting. Infosys Ltd, India’s second-largest IT services company, will review a proposal for a fresh share Infosys share buyback at its upcoming board meeting on September 11, 2025. The move is part of the company’s long-standing policy of returning a significant portion of free cash flow to shareholders through a combination of dividends and buybacks.
Five-Year Buyback Record
Over the past five years, Infosys has repurchased and extinguished 116.23 million equity shares, according to company filings. The most recent Infosys share buyback occurred between December 2022 and February 2023, when Infosys repurchased 60.42 million shares at an average price of ₹1,539.06 per share, amounting to ₹9,299.98 crore.
In October 2021, the company executed another buyback valued at ₹9,200 crore, repurchasing 55.81 million shares at an average price of ₹1,648.53. Earlier, in 2019, Infosys conducted a buyback worth ₹8,260 crore, acquiring 110.52 million shares at an average of ₹747.38 each.
The company’s first large-scale repurchase in recent years dates back to December 2017, when it carried out a ₹13,000 crore tender offer, buying back 113.04 million shares at ₹1,150 apiece.
Capital Allocation Policy
Infosys follows a clear capital allocation framework, distributing approximately 85 percent of its free cash flow over a five-year period. Free cash flow is defined as net cash provided by operating activities less capital expenditure, as per consolidated financial statements prepared under IFRS.
This distribution typically takes the form of semi-annual dividends, Infosys share buyback programs and occasional special dividends, subject to regulatory requirements. As of March 31, 2025, Infosys reported that it had no debt and only one class of equity shares, ensuring flexibility in its capital management strategy.
The company’s FY25 integrated annual report emphasized its focus on maintaining an optimal capital structure while safeguarding its ability to continue operations sustainably. Infosys noted that it may adjust dividend payments, issue new shares, or conduct buybacks as needed to maximize shareholder value.
Outlook Ahead
Infosys confirmed that the decision on the new Infosys share buyback proposal will be shared with stock exchanges following the conclusion of the September 11 meeting. The company also indicated its intent to progressively increase annual dividend payouts, reinforcing its commitment to long-term shareholder returns.
With a consistent history of buybacks and disciplined financial management, Infosys continues to align its capital strategy with investor expectations. The upcoming decision could further shape the company’s approach to balancing growth investments with shareholder rewards.
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