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Coforge Soars 10% on Stellar Q4, Margin Gains
7 May
Summary
- Coforge shares surged 10 percent following strong Q4 results.
- Revenue rose 30% year-on-year to Rs 4,450.4 crore in Q4.
- EBITDA margin improved significantly to 16.6% in Q4.
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.
