INFY.NS Stock Today: Parekh says AI won’t replace engineers — February 22

Infosys stock is in focus after CEO Salil Parekh said AI will not replace engineers overnight and flagged a $300–$400 billion AI services market. At the last close on 20 Feb 2026, INFY.NS settled at ₹1,370.50, moving between ₹1,363.20 and ₹1,402.00. For Indian IT services investors, that message, plus signs of steady US demand and ongoing campus hiring, feeds into expectations for FY26 deal flow and pricing. We break down INFY share price levels, fundamentals, and the near-term catalysts to watch.

Infosys stock today: AI stance and demand signals

CEO Salil Parekh said AI will augment engineers rather than replace them overnight and pointed to a $300–$400 billion services opportunity. He highlighted copilots and integration work as durable needs at large clients. This stance can ease disruption fears in Indian IT services. Read the coverage in Times of India here.

Parekh also noted that the $1.5 trillion tech services industry remains intact, with continued campus hiring and improving US demand supporting delivery. Investors will watch whether this view sustains large-deal momentum while limiting pricing pressure as automation rises. See Economic Times’ report here.

Price action and key technical levels

At ₹1,370.50, the stock is below its 50-DMA ₹1,605.00 and 200-DMA ₹1,549.29, reflecting a weak trend. RSI is 22.59, indicating oversold conditions. MACD is negative, and ADX at 34.32 signals a strong trend. One-day ATR is ₹48.02, implying typical daily swings near ₹48. Volume was 14,574,228 versus a 9,088,306 average, showing elevated activity.

Immediate support sits near the day low ₹1,363.20. Overhead, the intraday high ₹1,402.00 is first resistance, then the Bollinger middle band near ₹1,512 and the 200-DMA at ₹1,549. The 50-DMA at ₹1,605 is a higher hurdle. With ATR at ₹48, traders should size positions prudently. Infosys stock remains sensitive to deal news and guidance.

Earnings, deals, and guidance watch

Q4 FY26 results are scheduled for 16 April 2026. Key watchpoints include large-deal TCV, AI-led services adoption, pricing on renewals, utilization, and margins. Investors will track any commentary on US discretionary spend and campus hiring pace. Signals that AI boosts productivity without heavy rate compression would be supportive for sentiment and deal flow.

Meyka’s Stock Grade is 81.85 (A) with a model suggestion to BUY. Company Rating on 20 Feb 2026 was A- with a Buy tilt. Model pathfinders show near-term projection ₹1,292.95, 1-year ₹1,760.76, and 3-year ₹1,807.35. These are model estimates, not guarantees, and can change with earnings and macro data.

Fundamentals and valuation check

Infosys reports net profit margin of 16.16% and ROE of 29.68%, reflecting solid profitability. Leverage is modest with debt-to-equity at 0.106 and interest coverage at 86.93x. Liquidity looks comfortable with a current ratio of 1.81. Execution metrics to monitor include days sales outstanding at 105.58, which affects cash conversion and working capital intensity.

The stock trades at 19.41 times TTM earnings and 6.71 times book value, with price-to-sales at 3.05. Dividend yield stands at 3.33%, while free cash flow yield is about 6.27%. With price below both the 200-DMA and 50-DMA, any re-rating likely needs steadier deal momentum and resilient pricing through the FY26 guidance cycle.

Final Thoughts

Salil Parekh’s message that AI will support, not replace, engineers helps stabilise sentiment as clients expand pilots into production. For investors, the setup is clear. Near term, watch support near ₹1,363 and resistance at ₹1,402, then ₹1,512 and ₹1,549. Oversold readings could allow a technical bounce, but sustained strength likely needs evidence of steady large-deal intake, limited pricing compression, and margin discipline.

Into 16 April results, track AI project conversion, renewal pricing, utilization, and commentary on US demand and campus hiring. If guidance shows productivity gains without rate pressure, the case for medium-term recovery strengthens. Use position sizing aligned to volatility. This article is informational and not investment advice. Do your own research before investing.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.