Coforge Ltd. share price target

We value the company at 26x FY28E EPS, and recommend a BUY rating on the stock with a TP of Rs 1,980/share, implying an upside of 10% from the CMP.

Coforge (COFORGE IN) Event Update Accelerating AI stack to scale production BUY

We attended Coforge’s (COFORGE) Enterprise Autonomy Strategy session, where discussions focused on how AI is changing enterprise software delivery and COFORGE’s approach to monetizing this shift through Nuuron (enterprise autonomy platform), Momentuum Blue (forward-deployed engineering unit), and industry-specific solutions.

Considering Coforge's business track record, we continue to maintain our BUY rating, supported by Management's commitment to business integrity, strong operational capabilities, healthy deal momentum, an AI-led growth strategy, and the Encora acquisition.

Coforge has seen two independent directors exit within four days. NonExecutive Independent Chairman Mr. O. P. Bhatt resigned with immediate effect on 8th Sep’26, followed by Independent Director and NRC Chairperson Mr. D. K. Singh on 11th Sep’26.

Coforge hosted a call to address the recent board exits, providing clarity on the developments surrounding the departures and the company’s plans for board reconstitution.

Mr. O. P. Bhatt has resigned as Non-Executive Independent Director and Chairman with immediate effect. The resignation follows observations from an internal audit of the Board Evaluation Exercise, which highlighted gaps in the evaluation process and disclosure of certain material information, including aspects related to the Chairman's performance.

Coforge reported strong performance on all fronts. Notably, it: saw organic broad-based revenue growing 5.2% QoQ CC, excluding the impact of planned business exits, sustained a strong deal momentum – Q1FY27 deal TCV up 6.5% QoQ/36% YoY.

We maintain our BUY rating on the stock.

Strong organic growth & order book reinforce FY27 visibility : 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. It had a strong...

COFORGE reported 1Q revenue growth of 1.1% QoQ in CC terms, above our estimate of flat QoQ CC. The company reported an order intake of USD691m (up 36.3% YoY) in 1Q with four large deals.

Coforge delivered a robust Q1 FY27. Consolidated revenue came in at USD 592.2mn (+33.3% YoY), aided by the Encora acquisition, while organic growth ex-portfolio exits stood at a healthy 5.2% CC sequentially. Margins surprised positively as the consolidated EBIT margin came in at 16% and has surpassed full-year FY27 guidance of 15.5%, backed by faster than expected synergy realization (40% G&A cost-out) of Encora. The order book hit an all-time high of USD 2.23bn (+44.2% YoY), providing strong revenue visibility into FY2728. Free cash flow conversion improved sharply to 95.3% from...

We attended Coforge's Analyst Day, where discussions were centered on the company's medium-term growth aspirations, margin outlook following the Encora acquisition, evolving commercial models and the role of AI across its key verticals.

Coforge has rebuilt its offerings by embedding agentic AI across all its solutions. This is leading to AI deflation or cannibalisation of revenue, but concurrently is lifting revenue in new areas such as: AI-led application management services; tech modernisation; and AI-native product engineering.

The company’s growth strategy is centered on four pillars, with an emphasis on execution, big bets focused on strengthening core capabilities in AI-led engineering, data and integration, and cloud, while deepening its presence in industries (healthcare in the US and public sector in the UK).

AI a growth driver, not disruption risk: Management acknowledged industrywide AI productivity headwinds of 25-30% over the next 3-5 years but expects these to be more than offset by AI tailwinds in existing services (2030%) and AI driven new services (30-40%) thereby cumulatively boosting the industry by 50-70%, over the same period (Exhibit 3-9). Strong outlook across core verticals: BFS, Insurance, Travel and Public Sector remain core growth engines. Management also sees increasing opportunities in healthcare and government-led digital transformation programs. Management...

As per market consensus, Coforge is trading at 1 yr fwd P/E of 23x (3 yr avg P/E of 34x), offering attractive valuation. Coupled with a strong executable order book, diversified vertical growth, and enhanced AI-led capabilities, the company is well-positioned to deliver sustained...

Q4FY26 & FY26 Performance: Coforge reported revenue of US$489.1 mn, up 1.7% QoQ/ 21.2% YoY in US$ terms (+2% QoQ CC/ +28.7% YoY CC). EBITDA margin came at 20.6%, up ~232 bps QoQ while EBIT margin stood at 16.6%, up ~231 bps QoQ. Reported PAT (continuing business) stood at 612.3 crore, up 144.8% QoQ/135.7% YoY. For FY26, revenue stood at US$1.87 bn, up 29.1% YoY. EBITDA margins came at 18.6%, up ~430 bps YoY while EBIT margin stood at 14.4%, up...

4Q weaker on revenue but better on margins. FY26 showed strong organic growth of ~25%. Expect organic growth of ~13% in FY27

Coforge’s organic revenue growth for FY27 is likely to be impacted by exit of low-margin India portfolio and weak exit runrate in its largest vertical BFS. It has a healthy next-12-month orderbook (up 16% YoY), and agreements with UK public sector clients not yet included in order book could lead to healthy revenue recovery from Q2FY27.