Coforge Ltd. share price target

Q3FY26 Performance: Coforge reported revenue of US$478.2 mn, up 4.4% QoQ/ 21.5% YoY in CC terms. Adj. EBITDA margin (ex-one-off from new labour code, M&A legal expenses and legal provision) came at 17.4%, up ~80 bps QoQ. Adjusted EBIT margin came at 14.4%, down 60 bps QoQ. Adj. PAT (ex-one-offs) stood at...

We maintain our BUY rating on the stock.

Coforge has delivered a strong Q3FY26 performance and has reported 4.4% sequential constant-currency growth, driven by strong large-deal wins and rapid scaling of key accounts. The next 12-month executable order book stands at a record USD 1.72bn, up 30%YoY, giving high revenue visibility. Margins remain healthy, with reported EBIT at 13.4% despite wage hikes (~150bps impact) and hedge losses which was partially offset by cost optimization initiatives & lower ESOP costs, and management has reiterated confidence of reaching ~14% EBIT for FY26 and improving further in FY27. Free cash flow generation is strong at...

COFORGE reported a strong 3Q revenue growth of 4.4% QoQ in CC terms, above our estimate of 3.3% QoQ CC. The company reported an order intake of USD593m (up 18% YoY) in 3Q with six large deals, resulting in a robust 12-month executable order book of USD1.7b.

Our Take: The deal enhances Coforge's structural strengths yet, we turn cautious due to - (i) potential earnings dilution in FY27 despite management's accretion commentary and (ii) PE investor stake-sale overhang. Given deal size and leverage/QIP optionality, we also see risk of multiple compression, until integration progress becomes visible as market sentiment and valuation may...

Coforge announced the acquisition of Encora, a US-based engineering and AI-led services firm with revenue of ~USD500m, adding ~26% to Coforge’s FY26E revenue base.

Hyper-specialisation + Large-deal engine driving growth: We attended Coforge's Investor Day 2025, wherein the management highlighted Coforge's proactive, non-RFP (request for proposal) large-deal strategy and deep domain specialisation across BFS, Insurance, Travel and Healthcare which position it for sustained industry-leading growth into FY28E. Coforge closed 6 large deals in H1FY25 and is targeting 20 by year-end, with cloud and AI embedded in two-thirds of wins. Travel is set for a deep acceleration in the next 12 months, while...

We recommend a BUY on the stock and value the company at 38x multiple to its FY27E earnings to arrive at a TP of Rs 2,300/share, implying an upside of 18% from the CMP.

We attended Coforge’s Investor Day 2025 wherein the management discussions were largely centered on strategic objectives, growth vectors and execution intensity.

We attended Coforge’s analyst meet, wherein management reiterated its strategy of proactive large deal win focus; strong execution focus, with rewards for top sales leaders; specialised expertise in select industry segments of BFS, Insurance, travel and efforts to scale up healthcare and UK public sector.

Coforge Ltd (Coforge) is a digital services and solutions provider that leverages its domain experience across sectors such as Banking & Financial Services, Insurance, Government, Travel, Transport and Hospitality....

Coforge reported strong revenue growth of 5.9% QoQ CC, led by ramp-up of Sabre mega deal and BFS deal conversions (five large deals signed in Q1FY26). Operating margin was robust with 251bps QoQ expansion on lower SG&A and employee costs.

Given the company's strong growth potential, backed by robust deal wins and superior execution capabilities, we maintain our BUY rating on the stock.

Coforge reported a strong Q2FY26 with consolidated revenue of INR 3,855 crore (USD 462mn), growing 8.1%/26.7% QoQ/YoY in INR terms, driven by robust growth in Travel (+6.4%), Healthcare, Retail & Hi-Tech (+5.9%), Insurance (+1.8%), and BFSI (+4%) sectors. EBIT margin expanded 251bps QoQ to 14%, supported by lower ESOP costs and operating leverage, despite higher hedge losses. PAT margin improved to 9.4%. Order intake reached USD 514mn with five large deals, lifting the executable order book to USD 1.63bn, up 26.7% YoY. Employee strength increased to ~35K with a low attrition rate of 11.4% and...

We recently met with Coforge’s management to discuss the company’s outlook on growth, margins, and cash flow conversion.

Sabre ramp up surprised us in 1Q. Continued ramp up in 2Q and 3Q and that of other deals leads us to USD FY26 rev. upgrade by ~11%

Reported revenue stood at $442.4 million, up 8% q-o-q in constant currency (CC) terms, beating our estimates of 6.3% q-o-q growth in CC terms.

we resume our coverage with a BUY rating on the stock.

Coforge delivered a stellar quarter with 9.6%QoQ dollar growth and is targeting 14% EBIT for the fiscal year, backed by strong fundamentals including intense execution, deep industry specialization, and engineering excellence. Revenue reached USD 442.4mn (8% QoQ, 51.5% YoY CC), driven by verticals like TTH (up 32.3% QoQ), emerging segments (up 12.7% QoQ), and top 10 client growth (up 15.7% QoQ). The firm secured USD 507mn in new orders, pushing the 12-month executable order book to a record USD 1.55bn, up 46% YoY. AI-led platforms such as Quasar AI and Forge-X, with 20+ proprietary assets, are accelerating delivery...

COFORGE reported strong 1QFY26 revenue growth of 8.0% QoQ in CC terms, above our estimate of 7.0% QoQ CC. The company reported an order intake of USD507m( +61% YoY) in 1Q with five large deals, resulting in a
robust 12-month executable order book of USD1.55b. EBIT margin stood at 13.2%, below our estimate of 14%.