Coforge Share Price Today: Shares of Coforge Limited jumped nearly 10% on Wednesday, May 6, as profitability improved significantly in the March quarter even as revenue growth remained muted.
The stock was trading at Rs 1,284.70 at 09:28 am, up Rs 115.90, or 9.92%, from its previous close of Rs 1,168.80. The stock opened at ₹1,261.20 and hit an intraday high of ₹1,285.60. The stock’s low was ₹1,255.00. VWAP was at ₹1,277.15, indicating buying interest remained.
Q4FY26 Results: Margins in Spotlight
Coforge’s Q4 FY26 performance was a mixed bag but quality-orientated:
Revenue: Rs 4,450.4 crore (6.3% QoQ), $489.1 million (1.7% QoQ)
Constant currency growth: 2% quarter on quarter (below estimates).
EBIT margin: 16.6% (highest quarterly level ever)
EBITDA margin of 20.6% versus 18.3% QoQ, net profit of ₹612.3 crore, up 145% QoQ
Modest top-line growth, but the star of the show was profitability with a sharp expansion in margins thanks to operational efficiencies and better cost management.
Cash Flow and Order Book Momentum
The main positive point for the quarter was the strong improvement in cash flows:
Free cash flow (FCF): grew 68.4% quarter-on-quarter
Guidance for FCF-to-PAT conversion to be >100% from FY27 (earlier 70-80%)
The company also said:
Q4 order intake: $648m
Order book for execution: $1.75 billion for next 12 months (up 16.4% YoY)
This strong deal pipeline provides good visibility into continued growth.
Snapshot: Strong Full Year Growth FY26
Coforge reported good growth across key metrics for the full financial year FY26:
Revenue: ₹1,64,207 million / $1.87 billion (35.9% YoY up in INR terms)
EBITDA: ₹30,464 million (up 76.9% YoY)
EBIT at ₹23,645 million, up 82.7% YoY:
PAT: ₹15,557 million (91.6% growth YoY)
Margins improved significantly; EBIT margin increased 370 basis points to 14.4%.
Management Discussion
“FY26 marked another year of exceptional performance for Coforge,” said Sudhir Singh, Chief Executive Officer and Executive Director, backed by strong revenue growth and margin expansion. The company has a $1.75b executable order book and expects the strong growth momentum to continue into FY27 with EBITDA margins above 20.5%.
“We delivered strong YoY growth at 29.2% and expanded EBIT margins materially by 370 bps to 14.4%. With an order executable of $1.75 bn, we enter FY27 with strong momentum and confidence. We expect to deliver robust revenue growth in FY27 and plan to deliver an EBITDA of more than 20.5% on a consolidated basis in FY27,” he added.
Broking Views: Bullish bias but cautious
Most brokerages still maintain a bullish stance on the stock.
Nomura: Keeps Buy rating with target of ₹2,100, sees strong margins & FCF as key positives
Jefferies: Buy, Target Rs 1860; Expects Double-Digit Organic Growth With Deal Wins
HSBC: Buy, target ₹1,710; flags near-term growth moderation but has a strong order book
However, Citigroup maintained a Sell rating with a target of ₹1,115, citing concerns over slowing order book growth, rising headcount and sustainability of margin gains.
Market Takeaway
Coforge’s strong rally is a reflection of the investor’s confidence in its improving profitability, strong order pipeline and cash flow visibility. Near-term, revenue growth is being measured, but the company is being positioned for steady growth in the medium-term through margin expansion and efficiencies led by AI.
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The experts give their recommendations, suggestions, views, and opinions. Please consult a financial advisor before making any investment decisions.)
