The foreign broker cited "downside risks emerging for both the revenue growth of Indian IT services and valuation multiples" as the primary reason for the downgrade.

These concerns are compounded by a possible US economic slowdown and trade policy uncertainties. North America is a key market representing over 60% of Infosys' FY24 revenue.

Infosys is a global leader in next-generation digital services and consulting. The IT major reported 4.61% rise in consolidated net profit to Rs 6,806 crore on a 1.89% increase in revenues to Rs 41,764 crore in Q3 FY25 over Q2 FY25. The total contract value (TCV) of large deal wins was $2.5 billion in Q3 of FY25, with a net new of 63%.