Coforge shares double from March low, outperform Nifty IT peers. Is more steam left in the rally?

While artificial intelligence worries and inflationary pressures keep IT investors on the edge, Coforge shares have continued to deliver strong returns for its shareholders, as the stock rallied more than 100% in less than six months from a 52-week low in March to hit a fresh 52-week high last week.

New AI innovations sparked a sharp selloff in Dalal Street’s much-touted IT stocks in February this year, and Coforge was no exception. The stock plunged more than 28% in February alone, with the selloff continuing to widen in March. The shares of the company hit a 52-week low of Rs 1,008 apiece on March 17, 2026.

While doomsday prophets continued to debate the fate of the IT industry amid the artificial intelligence, analysts pointed out attractive valuations in the stocks after the sharp correction. However, the escalating Middle East conflict dampened sentiment again.


Escalating energy prices sparked inflationary fears and Federal Reserve’s rate hike worries. The IT companies derive a major portion of their revenue from the US, hence expectation of a reduction in discretionary spending further spooked IT investors. While India’s so-called ‘Anti-AI’ advantage helped the IT stocks recover slightly from their record lows, Coforge shares led the race, as the stock hit a 52-week high of Rs 2,021 apiece on August 31.

While Coforge shares have doubled from their 52-week low, other IT stocks have recovered partially, but most still have a long way to go. Oracle Financial Services Software (OFSS) also recovered sharply, rising 93% from its 52-week low. Persistent Systems shares have recovered 33%, while Wipro, Infosys, TCS, LTI Mindtree and others have recovered 4-29% from their 52-week lows.

Also read |Midsize Indian IT firms set to capture majority of FY27 growth

What’s behind Coforge’s outperformance

Coforge in July reported a 63% year-on-year (YoY) jump in net profit for first quarter of financial year 2027 to Rs. 518.6 crore. Revenue for the April-June quarter grew nearly 50% YoY to Rs. 5,528 crore during the quarter under review.

Sudhir Singh, chief executive officer of Coforge said that the narrative of AI-led deflation "is real in the managed services book of business", but the company is also seeing AI-led demand tailwinds. "Now, organisations that are pivoting hard and with speed can more than offset the deflation because of AI and demand,” he said.

CLSA last month highlighted that Q1 earnings were a mixed bag for Indian IT and global peers. Basic Excel math does imply that AI volumes could supersede deflation by FY30, taking USD revenue growth from low to mid-single digits, the international brokerage said. Given long gestation time and limited potential upsides, CLSA downgraded its rating on the shares of Tata Consultancy Services (TCS), Infosys and Tech Mahindra to ‘Hold’, and that on Wipro and Mphasis to ‘Underperform’, due to structural concerns.

The international brokerage however saw mid-tier IT vendors in a better position to take advantage of these tectonic changes, with good quality management teams and execution. Hence, it reiterated its ‘High Conviction Outperform’ rating on Coforge and Persistent Systems.

Jefferies in July added Infosys and increased its weight in Coforge in its model portfolio. Axis Direct has a ‘Buy’ call on the stock, as it remains positive towards the company’s long-term growth outlook over the coming quarters.

ICICI Securities recently said that Coforge, along with LTIMindtree, Mphasis, Persistent Systems and Hexaware are estimated to capture 51% of incremental organic revenue in FY27, up from 46% in FY26. The share of industry leaders Tata Consultancy Services, Infosys, HCLTech, Wipro and Tech Mahindra is expected to fall to 48% from 53%.

Also read | Coforge’s strong order book and execution point to better margins and growth

Coforge share price

Coforge shares have fallen around 3% in one week but gained nearly 9% in a month and 16% in 2026 so far. The stock has overall gained a little over 16% in the past one year.

In the longer term, Coforge shares have delivered positive returns of 72% in three years and 86% in five years. The company has a market capitalisation of more than Rs 85,448 crore.

Disclosure: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.