Shares of India's No.2 IT company Infosys fell nearly 6% on Friday despite beating third-quarter result estimates, as analysts raised concerns about the quality of earnings.

Infosys, India’s second-largest software services provider, reported 4.6% rise in its net profit at ₹6,806 crore for the quarter ended December 2024 from ₹6,506 crore in the previous quarter.

Infosys shares fell nearly 6% on Friday, marking their largest one-day decline since July 2023. The drop followed concerns raised by analysts over the quality of earnings in its third-quarter report.

India's benchmark indexes were dragged down at the open on Friday by a drop in IT company Infosys and private lender Axis Bank after they reported quarterly results. The Nifty 50 fell 0.56% to 23,184.

Infosys shares fell nearly 5% after its Q3 results showed an 11% YoY net profit growth, reaching Rs 6,806 crore, and revenue increasing 8% YoY to Rs 41,764 crore. Despite revising its revenue guidance upwards,