NEW DELHI, Jan. 12 -- Infosys Ltd managed to grow its revenue in the third quarter at a faster pace than its larger rival, Tata Consultancy Services Ltd (TCS), even as the Bengaluru-based company agreed to pay shareholders Rs 8,260 crore through a share buyback, the second successive share repurchase in as many years.

Significantly, Infosys raised its full-year revenue outlook to 8.5-9% in constant currency terms from the earlier 6-8%, though the company's profitability took a hit, after Mumbai-based TCS too saw a contraction in operating margin.

The Infosys board on Friday approved a share buyback for up to Rs 800 a piece, which will cost the company around Rs 8,260 crore. This is the second share buyback after the company returned Rs 13...