Coforge shares surge 7% after Q4 profit rises 16.5% YoY. Should you invest?

Coforge shares climbed as much as 6.7% on Tuesday to Rs 7,999 on the BSE after the IT solutions firm reported a 16.5% year-on-year rise in consolidated net profit to Rs 261 crore for the March quarter. The net profit attributable to shareholders stood at Rs 224 crore in the same period last year.

Revenue from operations rose 47% YoY to Rs 3,410 crore in Q4 FY25, compared to Rs 2,318 crore in Q4 FY24. On a sequential basis, profit rose 21%, while revenue grew 4.6%.

The company reported an order intake of USD 2.1 billion for the quarter, signing five large deals across North America, the UK, and APAC.


Should you buy, sell, or hold Coforge's stock? Here’s what brokerages say:

Nuvama

Nuvama maintained a ‘Buy’ rating on Coforge, with a revised target price of Rs 9,400, down slightly from Rs 9,600.

The brokerage said Coforge has built a strong foundation for FY26, supported by broad-based growth and record deal wins. Management remains optimistic about margin expansion and robust growth in the coming year. The company’s total contract value surged 174% YoY, and its executable 12-month order book rose 48% YoY.

Nuvama highlighted that this performance reinforces Coforge’s standing as a growth leader in the IT sector. However, it has trimmed its FY26E and FY27E earnings per share estimates by 2.6% and 2.5%, respectively, citing the impact of a recent divestment and lower other income. It values Coforge at 35x FY27E price-to-earnings.

Antique

Antique also maintained a ‘Buy’ rating, with a target price of Rs 9,650, citing a strong Q4 and positive FY26 outlook.

Revenue rose 3.4% QoQ in constant currency terms, slightly above expectations, driven by BFS and travel verticals. Despite macroeconomic headwinds, Coforge is confident about its FY26 growth prospects, backed by a healthy pipeline and continued deal momentum. The Q4 order intake of USD 2.1 billion was sharply higher than the USD 501 million in Q3 and the eight-quarter average of USD 451 million.

Also read: Paras Defence shares jump 4% after MoU with Israel’s HevenDrones to set up JV for defence logistics drones

Antique has raised its FY26 and FY27 EPS estimates by 4% and 3%, respectively, but lowered the target P/E multiple to 36x from 37x, citing industry-wide demand risks.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)