Coforge reported Q4 FY26 EBIT margins of 16.6% — an all-time quarterly high — up 231 basis points sequentially and 430 basis points year-on-year
Shares of Coforge Limited opened sharply higher on the NSE Wednesday, hitting an intraday high of ₹1,295.80 — up over 8 per cent from the previous close of ₹1,168.80 — with traded value crossing ₹2,173 crore by mid-morning. The stock was last seen at ₹1,263.40 as of 10.53 am, buoyed by a strong set of Q4 FY26 results.
Motilal Oswal (MOFSL) maintained a Buy rating with a target price of ₹1,800, implying 54 per cent upside from Tuesday’s close, valuing the stock at 26x FY28E EPS. The brokerage increased EPS estimates by 3-4 per cent to reflect a meaningful upgrade in margin guidance, even after factoring in a 2-3 per cent revenue drag from Coforge’s planned exit of its low-margin India government pass-through business. MOFSL expects Coforge to be the growth leader within its coverage universe.
Choice Institutional Equities went further with a target price of ₹1,900 based on FY28E EPS of ₹67.8, reiterating a Buy and projecting revenue/EBIT/PAT CAGR of 21.2 per cent/25.7 per cent/29.9 per cent over FY26–FY29E. SBI Securities, while holding a neutral view, acknowledged the strong execution and noted the stock trades at 21.6x and 18.1x on FY27E and FY28E consensus earnings respectively.
Coforge reported Q4 FY26 EBIT margins of 16.6 per cent — an all-time quarterly high — up 231 basis points sequentially and 430 basis points year-on-year. Revenue in INR terms grew 30 per cent yoy to ₹4,450 crore. Adjusted PAT came in at ₹612 crore, rising 144.8 per cent sequentially, though the sharp jump was partly aided by a one-time reversal of deferred tax liabilities of ₹1,810 crore following the Cigniti merger. Normalized quarterly PAT was approximately ₹470 crore.
For full-year FY26, revenue grew 29.2 per cent in USD terms to $1.87 billion, while EBIT margins expanded 370 basis points to 14.4 per cent. The 12-month executable order book stood at $1.75 billion, up 16.4 per cent year-on-year.
Management guided for broadly flat Q1 FY27 revenue due to the India business exit, with a strong recovery expected from Q2 onwards, and EBITDA margins of 20.5–21 per cent for FY27.
Published on May 6, 2026