Coforge share price in focus today: Eighth-largest IT services firm saw its shares surge nearly 6% in early trade on Monday, October 27, hitting a three-month high of ₹1,866 apiece. The rally followed the company’s strong performance in the September quarter, prompting analysts to turn more optimistic on the stock and revise their target multiples upward.
Coforge recorded the fastest growth among nine of India’s 15 largest IT services firms that have reported results so far. This marked the fifth consecutive quarter of outperformance for the company, driven by continued demand from banking and travel clients despite a challenging macroeconomic environment.
The company growth to ₹3,986 crore, supported by a major deal with Sabre. EBIT margin came in at 14%, in line with brokerage estimates.
On the bottom line, net profit rose 18% sequentially and a robust 86% year-on-year to ₹376 crore.
Order intake stood at $14 million (up 1% YoY) in Q2, with five large deal wins, taking the 12-month executable order book to a healthy $1.6 billion.
Despite wage hikes, management expects EBIT margin to remain steady at around 14% for FY26, supported by cost optimization measures. The company is also expanding into healthcare and other verticals, with encouraging growth prospects amid a challenging demand environment.
Analysts see Coforge’s share price rising as high as ₹2,500
Motilal Oswal on Coforge share price: The brokerage expects Coforge to be the growth leader within its coverage universe and reiterated it as its top pick. It noted that Coforge’s strong executable order book and resilient client spending across verticals bode well for organic growth, while cross-selling opportunities with Cigniti add further synergies.
It maintained its ‘buy’ rating with a target price of ₹2,400, implying a potential upside of about 31% from the stock’s latest close.
JM Financial on Coforge share price: The brokerage also reiterated its ‘buy’ rating and raised its target multiple to 35x (from 32x earlier), arriving at a higher target price of ₹2,040.
“There were no adjustments or one-offs reported in margins during the quarter, which boosts confidence in sustained margin and earnings growth, warranting higher valuation multiples,” JM Financial said.
Morgan Stanley on Coforge share price: Maintained ‘Overweight’ rating and raised the target price to ₹2,030, citing all-around Q2 performance that eased investor concerns. The brokerage noted strong visibility in growth and margins for the second half, with consistent execution supporting re-rating potential.
JP Morgan on Coforge share price: Retained ‘Overweight’ rating with a target price of ₹2,500, highlighting margin and cash flow improvement. The firm noted margins at 14%, above expectations, and expects robust second-half growth supported by strong deal momentum.
Jefferies on Coforge share price: Reiterated ‘Buy’ rating with a target price of ₹2,180, stating that solid 6% QoQ growth and margin expansion to 14% surprised positively. The brokerage expects a 20% EPS CAGR for FY26–28 with sustained profitability and cash flow strength.
Nomura on Coforge share price: Maintained a ‘Buy’ rating with a target price of ₹1,900, citing in-line revenue, better-than-expected margins, and a strong executable order book that supports near-term growth visibility. It also reaffirmed Coforge as its top mid-cap IT pick.
Nuvama Institutional Equities on Coforge share price: Reaffirmed ‘Buy’ rating and raised the target price to ₹2,250, pointing to robust Q2 results with margin expansion and strong order book growth. It said the company has addressed prior margin and cash flow concerns, paving the way for a re-rating.
Citi on Coforge share price: The brokerage, however, retained ‘Sell’ rating with a target price of ₹1,530, noting slightly lower dollar revenue but stable margins. The brokerage highlighted improved free cash flow and steady headcount additions but remains cautious on forward growth momentum.
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