Bengaluru: Infosys has announced a ₹18,000 crore share buyback, its biggest in a decade, as the IT sector continues to face headwinds from global macroeconomic uncertainty and tariff-related volatility. The move is seen as an attempt to return value to shareholders and support the company’s stock, which has been under pressure in recent quarters.

The Bengaluru-based IT major will repurchase 100 million equity shares at an average price of ₹1,800 apiece, representing a 19.3% premium over Thursday’s closing price of ₹1,509.50 on the BSE. The buyback constitutes 2.41% of the company’s total paid-up equity capital, Infosys said in a stock exchange filing.

Fifth buyback in a decade

This marks Infosys’ fifth share buyback in ten years, and comes two years after its last repurchase in 2022, when it spent ₹9,300 crore to buy back 60 million shares at an average price of ₹1,850 in the open market.

The current buyback surpasses the company’s previous high in 2017, when it spent ₹13,000 crore via a tender offer to repurchase 113 million shares at ₹1,150 per share.

Other notable buybacks include:

2019: ₹8,260 crore for 110.5 million shares at ₹747/share (open market)

2021: ₹9,200 crore for 55.8 million shares

The cumulative buyback strategy highlights Infosys’ continued focus on capital return, even amid a challenging operating environment.

IT sector under pressure

Infosys shares have fallen nearly 22% over the past 12 months, underperforming the broader market. So far in 2025, the stock remains in negative territory. The Nifty IT index is down over 17% year-to-date, making it the worst-performing sectoral index, even as the Nifty50 has gained 5.5% during the same period.

The ongoing global slowdown, client spending cuts, and uncertainty in Western economies have hit IT exporters hard, with revenue growth moderating and margins under pressure.

Buyback as market support

Analysts see the buyback as a strategic move to stabilise the stock. CLSA, a Hong Kong-based brokerage, noted that Infosys’ decision could set a precedent, possibly prompting TCS or other IT peers to consider similar actions to support valuations.

Share buybacks have become a preferred route for Indian IT companies to deploy surplus cash and boost earnings per share (EPS) in the face of sluggish business sentiment.