Coforge share price rises following strong Q4 results
Coforge’s share price has surged by 8% after announcing its impressive Q4 FY26 results, showcasing a strong financial performance and a promising outlook for FY27. The company attributes this success to its effective use of AI to enhance productivity and profitability.
In the fourth quarter of FY26, Coforge reported a revenue of ₹4,450.4 crore, marking a remarkable 30% increase year-over-year. In dollar terms, this revenue translates to $489.1 million, reflecting a growth of 21.2% YoY. The company also achieved an EBITDA of ₹916.8 crore, with an EBITDA margin of 20.6%, contributing significantly to the rise in its stock price.
The net profit for Q4 FY26 surged by 144.8% quarter-over-quarter to reach ₹612.3 crore. This impressive growth is supported by a robust order book; Coforge’s total order intake for FY26 stood at $2,262 million, while its executable order book for the next 12 months is valued at $1.75 billion—an increase of 16.4% YoY.
Management expressed optimism about the future, anticipating strong revenue growth in FY27 and aiming for an EBITDA margin exceeding 20.5%. Analysts have responded positively; around 70% have rated Coforge as a Buy, with target prices suggesting potential upside—Motilal Oswal projects ₹1,800 per share and Nuvama suggests ₹2,200.
Sudhir Singh, CEO of Coforge, mentioned, “FY26 marked another year of exceptional performance for Coforge. We delivered strong YoY growth at 29.2% and expanded EBIT margins materially by 370 bps to 14.4%.” This statement reflects the company’s commitment to maintaining its upward trajectory.
Analyst Perspectives:
- Motilal Oswal views Coforge as a structurally strong mid-tier player with improving margins and steady demand in AI-led managed services.
- Nuvama has revised its earnings per share estimates for FY27E/28E upwards as they integrate recent acquisitions and upgrade margins.
- Anshul Jain noted that a sustained close above ₹1270 would confirm strength and trigger fresh momentum toward the ₹1350 zone.
The impact of AI on traditional IT services pricing remains unclear, leaving some uncertainties about how these advancements will shape future market dynamics. Investors are eagerly watching whether Coforge can sustain its impressive Q4 EBITDA margin of 20.6% as it continues to leverage AI productivity benefits in its operations.
