Coforge Soars 10% on Stellar Q4, Margin Gains

Coforge's stock price surged by 10 percent on Wednesday, reaching Rs 1,278 per share, following the announcement of strong Q4 and full financial year FY26 results. The company reported a notable increase in revenue for the March quarter, rising 30% year-on-year to Rs 4,450.4 crore. This period also saw a significant improvement in profitability, with EBITDA climbing 56.2% to Rs 916.8 crore and EBITDA margins expanding to 16.6%, surpassing expert projections.

For the full fiscal year FY26, Coforge demonstrated substantial growth, with revenue reaching Rs 16,420.7 crore, a 35.9% increase from the previous year. Net profit also saw a sharp rise to Rs 1,555.7 crore. Looking ahead to FY27, the management has guided for robust revenue growth and expects consolidated EBITDA margins to exceed 20.5%.

Despite a projected flat revenue growth in the first quarter of FY27 due to the divestment of a low-margin India portfolio, analysts remain optimistic. Both Nomura and Jefferies have maintained their 'buy' ratings, increasing their target prices and earnings estimates, citing a strong order book and AI-driven efficiencies as key drivers for sustained double-digit organic growth.