Coforge Share Price Today: Coforge shares surge nearly 10% after strong Q4 results, driven by margin expansion, rising cash flows, and a robust order pipeline.
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.
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.
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.
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%.
“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.
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.
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.)
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