This IT Services Stock Rises 61% in 6 Months: What Powered the Comeback?
- September 10, 2026
- Posted by: Harsh Piplani
- Category: Best Stocks
CMP approximately Rs 1,833 (10 Sep 2026). 6-month return 60.89%. 52W range Rs 1,008.10 to Rs 2,021.20. Market cap Rs 81,814 Cr. Q1 FY27 PAT Rs 518.6 Cr, up 110%.
Quick Answer
Coforge, a mid-tier IT services and digital engineering company, is the IT services stock behind a return of approximately 61% in six months. The share climbed from a March 2026 low of Rs 1,008.10 to a high of Rs 2,021.20 on the Encora acquisition, a 49% jump in revenue and a record USD 2.23 billion order book. At a trailing PE near 42.6, the next leg depends on organic growth and smooth integration.
This IT services stock has added approximately 61% in just six months, turning Rs 1 lakh into roughly Rs 1.61 lakh. With a 6-month return of 60.89%, it ranked 24th in a screen of 101 large-cap and mid-cap NSE stocks as of 10 September 2026, and it did so while most of the Indian technology pack was still recovering from a painful AI-led selloff.
The company is Coforge Ltd (NSE: COFORGE), a mid-tier IT services and digital engineering firm focused on insurance, banking, travel and healthcare clients. The Coforge share price closed at approximately Rs 1,833 on 10 September 2026, down about 0.6% for the day, but well above its 52-week low of Rs 1,008.10 touched on 17 March 2026. The stock hit a 52-week high of Rs 2,021.20 on 31 August 2026.
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How Much Has This IT Services Stock Returned?
The 6-month number is the headline, and it stands out against the rest of the table. This IT services stock sits in the top quarter of the screen on the 6-month view, while its 1-year, 3-year and 5-year ranks are closer to the middle.
| Period | Return (%) | Rank (out of 101) |
|---|---|---|
| 1 Month | 1.72 | 77 |
| 6 Months | 60.89 | 24 |
| 1 Year | 16.29 | 64 |
| 3 Years | 81.93 | 51 |
| 5 Years | 77.60 | 62 |
Returns are simple price changes and are not annualised. The 1-year gain of 16.29% is far smaller than the 6-month gain because the IT services stock first fell hard between December 2025 and March 2026, then recovered. The 1-month return of 1.72% shows the rally has cooled after the August peak.
A six-month-old price of around Rs 1,139 is implied by the screen return. The move is genuine price appreciation. The company split its shares in a 1:5 ratio (face value Rs 10 to Rs 2) with a record date of 4 June 2025, well before this window, so the 6-month figure is not distorted by the split.
Why Did This IT Services Stock Rise 61% in 6 Months?
This IT services stock rose 61% because four things lined up after the March low: a deep valuation reset, the close of a large acquisition, a strong June quarter and a record order book. Each trigger changed how investors priced Coforge.
1. A Rebound From an Oversold March Low
New AI coding and automation tools triggered a sharp selloff in Indian IT stocks in early 2026, and this IT services stock fell about 28% in February alone. For this IT services stock, weak December quarter profits added to the pressure, as net profit dropped about 33% sequentially after roughly Rs 118 crore of one-time labour code costs.
By 17 March 2026 the Coforge share price had slipped to Rs 1,008.10, nearly half its December 2025 peak of about Rs 1,989. At that point it traded at roughly 19 times estimated FY27 earnings, which pulled value buyers back into the IT services stock.
2. The Encora Deal Closed and Added Scale
In late December 2025 Coforge announced an all-stock acquisition of US-based AI engineering firm Encora at an enterprise value of approximately USD 2.35 billion. The Reserve Bank cleared the overseas investment in early April 2026, and the stock gained about 9% over two sessions around that approval.
On 23 April 2026 the company allotted about 9.37 crore shares to Encora’s owners at Rs 1,815.91 each, a deal value of approximately Rs 17,033 crore. The IT services stock also raised a USD 550 million three-year loan at 4.6% from a group of global banks. Encora has been consolidated from 1 May 2026, which roughly adds a sixth to quarterly revenue for this IT services stock.
3. The Cigniti Merger Simplified the Structure
The long-planned merger of listed subsidiary Cigniti Technologies into Coforge became effective in May 2026 after tribunal approval. Cigniti shareholders received one Coforge share for every Cigniti share on a post-split basis, and about 1.27 crore new shares were allotted on 3 June 2026.
For this IT services stock, the merger removed a separate listed entity, brought Cigniti’s full profits under one roof and ended minority leakage. For shareholders, it means one cleaner set of accounts, though it also adds to the share count.
4. A Record Quarter and a USD 2.23 Billion Order Book
The biggest trigger for the IT services stock arrived with the Q1 FY27 results in July. Revenue rose 49.2% year on year to Rs 5,527.7 crore, or 33.3% in dollar terms to USD 592.2 million. Net profit jumped about 110% to Rs 518.6 crore, and EBIT margin reached 16%, above the 15.5% guidance.
The 12-month executable order book climbed 44.2% to a record USD 2.23 billion, with fresh order intake of USD 691 million and four large deals across North America, Europe and Latin America. The shares jumped about 9% on results day, and the IT services stock added around 31% in the four weeks to 20 August 2026.
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What Do the Latest Financials Show?
The latest financials show an IT services stock growing faster than most large peers, though part of that growth is bought rather than organic. The table below uses consolidated figures for the last five quarters.
| Quarter | Revenue (Rs Cr) | EBITDA (Rs Cr) | Net Profit (Rs Cr) | Operating Margin |
|---|---|---|---|---|
| Jun 2026 | 5,554.5 | 1,084.8 | 531.7 | 18.63% |
| Mar 2026 | 4,472.6 | 898.6 | 666.2 | 18.99% |
| Dec 2025 | 4,252.2 | 744.1 | 296.7 | 14.10% |
| Sep 2025 | 4,024.2 | 771.0 | 425.4 | 19.34% |
| Jun 2025 | 3,723.0 | 595.6 | 356.4 | 17.30% |
Revenue in these figures includes other income, so it is slightly above the reported operating revenue of Rs 5,527.7 crore for the June quarter. The dip in the December quarter came from one-time labour code costs, and profit rebounded strongly in March.
On a yearly basis, FY26 revenue rose about 35% to Rs 16,475.9 crore and net profit rose about 74% to Rs 1,674.5 crore. Organic growth was modest in Q1 FY27 at 1.1% in constant currency, or 5.2% after adjusting for planned client exits, so Encora did most of the heavy lifting.
The balance sheet of the IT services stock has changed shape. Total borrowings rose to about Rs 5,380 crore after the Encora loan, from roughly Rs 400 crore a quarter earlier, and net interest cost climbed to about Rs 60 crore. The IT services stock still generates strong cash, and free cash flow was about 95% of profit in the June quarter.
Who Owns This IT Services Stock Now?
This IT services stock has no promoter group, so ownership sits with institutions and the public. The Encora share swap reshaped that mix in the April 2026 filing.
| Quarter | Promoters | FII | DII | Public and Others |
|---|---|---|---|---|
| Jun 2026 | 0.00% | 24.31% | 42.62% | 33.07% |
| Mar 2026 | 0.00% | 30.65% | 56.19% | 13.16% |
| Dec 2025 | 0.00% | 34.53% | 53.67% | 11.80% |
| Sep 2025 | 0.00% | 34.09% | 54.87% | 11.03% |
The jump in the public category is mostly the former Encora owners, AI Altius Parent (Cayman) with 12.85% and Encora Holdco with 8.33%. Their entry diluted both FII and DII percentages, so the fall does not mean institutions sold in bulk.
Domestic mutual funds remain anchor holders of this IT services stock, led by a Motilal Oswal mid-cap scheme at 5.04% and an HDFC mid-cap scheme at 4.33%. LIC holds 3.56%. The two new holders could become a source of supply if they sell after any lock-in ends, which is worth tracking.
Is This IT Services Stock Expensive After the Rally?
Yes, on trailing numbers this IT services stock looks rich. It trades at a PE of approximately 42.6 against an industry PE of about 18.4, with a PB of 3.11 and an ROE of 16.31%. The trailing earnings still carry deal costs and the weak December quarter, so the forward multiple is lower.
Analysts value the IT services stock at 26 to 28 times estimated FY28 earnings. That is a premium to most mid-tier peers and assumes Encora integrates smoothly and margins stay near 16%. The market capitalisation now stands at approximately Rs 81,814 crore.
Key Risks for This IT Services Stock
The rally in this IT services stock rests on execution, and several risks could slow it. Investors in this IT services stock should weigh these points before adding exposure.
Integration risk: Encora is the largest deal this IT services stock has ever done. Any client loss, talent exit or cost overrun during integration could hit margins and the Coforge share price.
Weak organic growth: Organic constant-currency growth was only 1.1% in Q1 FY27. If acquired revenue does not grow, headline growth will slow sharply once the base effect fades in FY28.
Higher debt and dilution: Borrowings of about Rs 5,380 crore and around 10.6 crore new shares from Encora and Cigniti raise interest costs and dilute EPS. The recent dividend and buyback capacity is lower than before.
AI disruption and US demand: The same AI tools that sparked the February selloff could compress pricing in traditional services. Energy price shocks from the Middle East have also raised worries about US discretionary tech budgets.
Share supply overhang: The former Encora owners hold about 21% of the company. A large block sale could weigh on the IT services stock, as could profit booking after a near doubling from the March low.
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Coforge Share: Analyst View
Most brokerages turned more positive on the IT services stock after the June quarter. They point to the record order book, 86% of revenue now coming from AI-led engineering, data and cloud work, and a more diversified client base, with the top five clients now at 18% of revenue from 21.8%.
The concerns are the same ones listed above: organic growth, integration and debt. The IT services stock has already moved close to several targets, so the room for re-rating is narrower than it was in March.
Coforge Share Price Target
After the Q1 FY27 results, a domestic brokerage raised its Coforge share price target to Rs 2,050 from Rs 1,955, valuing the IT services stock at 28 times FY28 estimated earnings. Another domestic brokerage has a buy rating with a target of Rs 1,950, based on 27 times FY28 earnings.
From the 10 September close of approximately Rs 1,833, the higher Coforge share price target implies about 12% upside and the lower one about 6%. In March, when the stock sat near Rs 1,089, a domestic brokerage had a target of Rs 1,880, a level the IT services stock has already crossed.
On the chart, the 52-week high of Rs 2,021.20 is the key resistance. On the downside, the Rs 1,667 level where the stock traded on results day in July is a reference point for support. Targets for any IT services stock are estimates and can change with each quarter.
Conclusion
This IT services stock rose approximately 61% in six months on a rebound from oversold levels, the Encora acquisition, the Cigniti merger and a record order book of USD 2.23 billion. For this IT services stock, the Q1 FY27 numbers showed 49% revenue growth and a 110% jump in profit, which gave the rally a real earnings base.
The Coforge share price now trades near 42.6 times trailing earnings, and much of the good news is in the price. For long-term investors, the next few quarters of organic growth and Encora margins will decide whether this IT services stock can climb back above its Rs 2,021 high. Staggered buying and a clear view of risk make sense after a move this large.
Disclaimer: Data and figures in this article are sourced from publicly available information and may or may not be accurate. Please verify all data independently before making any investment decision. Past returns do not guarantee future returns. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
Which IT services stock rose 61% in 6 months?
Ans. Coforge Ltd (NSE: COFORGE) is the IT services stock that gained approximately 60.89% over six months as of 10 September 2026. It ranked 24th among 101 large-cap and mid-cap NSE stocks screened on the 6-month return.
Why did the Coforge share price rise so much?
Ans. The Coforge share price rose on a rebound from its March 2026 low of Rs 1,008.10, the completion of the Encora acquisition and a strong Q1 FY27. Revenue grew 49% and the executable order book hit a record USD 2.23 billion.
Did the Coforge stock split affect the 6-month return?
Ans. No. Coforge split its shares 1:5 with a record date of 4 June 2025, which is outside the six-month window. The 60.89% return reflects genuine price appreciation.
What were Coforge Q1 FY27 results?
Ans. Coforge reported Q1 FY27 revenue of Rs 5,527.7 crore, up 49.2% year on year, and net profit of Rs 518.6 crore, up about 110%. EBIT margin was 16%, ahead of the 15.5% guidance.
What happened with the Coforge and Cigniti merger?
Ans. The merger of Cigniti Technologies into Coforge became effective in May 2026. Cigniti shareholders received one Coforge share per Cigniti share, and about 1.27 crore shares were allotted on 3 June 2026.
What is the Coforge share price target?
Ans. A domestic brokerage has a Coforge share price target of Rs 2,050, and another has Rs 1,950. These imply roughly 6% to 12% upside from about Rs 1,833, but targets are estimates and can change.
What is the 52-week high and low of Coforge?
Ans. Coforge has a 52-week high of Rs 2,021.20, hit on 31 August 2026, and a 52-week low of Rs 1,008.10, hit on 17 March 2026. The stock closed near Rs 1,833 on 10 September 2026.
Is it safe to buy this IT services stock after the rally?
Ans. No stock is risk free, and this IT services stock trades at a PE of about 42.6 after a sharp run. Integration risk, weak organic growth and higher debt are key watch points, so consider staggered buying and consult a SEBI-registered advisor.
