Why is the Coforge Share price rising?

Click Here – Get Free Investment Predictions

The recent Coforge Ltd share price is ₹1,825.20, reflecting an increase of 76.54 or 4.32%. Today’s performance shows the stock has outperformed its sector by 1.49%, reaching an intraday high of ₹1,640.00, up 4.68%. Coforge recorded the fastest growth among nine of India’s 15 most extensive IT services firms that have reported results so far. This marked the fifth consecutive quarter of outperformance of the company, driven by continued demand from banking and travel clients despite a challenging macroeconomic environment. The stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, which leads to suggests a strong upward trend. 

Over the past week, Coforge has gained 1.75%, and over the past month, it has risen by 7.10%. The company has demonstrated strong long-term fundamentals, with a 23.95% CAGR in operating profits and consistent positive results over the last five quarters, which likely contributed to the recent price increase. Despite this, the company maintains a strong average Return on Equity (ROE) of 17.06%, and healthy growth rates in net sales and operating profit.       

Key Reasons for the Rise in the Coforge Share Price

There are several reasons behind the Coforge share price increase, including robust financial status, substantial quarterly numbers, a strong order book, operational leverage, and high profitability.  

Click for Our Big Prediction

Below are the reasons for the rise in the Coforge share price

• Robust Financial Status: The company posted revenue of $462 million, reflecting a 5.9% quarter-on-quarter (Q-o-Q) increase in constant currency terms, broadly in line with estimates. Analysts are optimistic, raising target prices with high growth aspects.  
• Substantial Quarterly numbers: Coforge reported a robust set of results for the second quarter of fiscal 2026 (Q2 FY26), with revenue growth, margin expansion, and positive cash flows. It is expected that the company will post approximately 29% YoY revenue growth of FY26 in US dollar terms. 
• Strong order book: Record Total Contract Value (TCV) pipeline driven by large multi-year deals and renewals across BFSI (Banking, Financial Services & Insurance) and public sector.
• Operational Leverage: Improving offshore mix, cost optimisation, and utilisation rates, driving margin recovery, and focused on large transformation deals in the UK and US, particularly in citizen services and automation. 
• High profitability: The company’s forward-looking statements and strong quarterly performance provide a comprehensive view of its financial strategy and operational expectations. However, investors should note that these projections are based on current expectations and may be subject to changes in the business environment. 
• Investor confidence: High institutional holdings, significant profit growth, and a history of consistent performance lead investors to believe in the company’s fundamentals. 

Sign up with Univest to receive more investment predictions and access exclusive screeners! Click here.

Coforge: An Overview

Coforge Limited, formerly known as NIIT Technologies Limited, is an Indian multinational information technology company based in Noida. The company’s stock trades on the Bombay Stock Exchange and the National Stock Exchange of India under the ticker symbol COFORGE. It is a global digital services and business solutions provider with in-depth domain expertise, specialising in selected industry verticals. The company delivers services worldwide, both directly and through its network of subsidiaries and overseas branches. Coforge leads with its product engineering approach and leverages Cloud, Data, integration and Automation technologies to transform client businesses into intelligent, high-growth enterprises. Coforge enhanced collaboration with Microsoft to boost developer productivity; trained over 10,000 developers on GitHub Copilot. 

Coforge: Performance Analysis

In the broader market, Coforge’s short-term performance of +1.61% over the past week significantly outpaces the Sensex, which has only increased by 0.85% in the same period. The total revenue of Coforge Ltd is ₹9,179 crores, up 14.5% year-on-year (YoY), and the net profit (PAT) is approximately ₹808 crores, up 16.5% YoY. The Adjusted EBITDA Margin is 17.6%, and order intake is $1.9 billion, up 56% YoY. Coforge has recently demonstrated robust financial performance, driven by substantial revenue growth and profitability. The net profit increased 19.4% QoQ and increased 82.1% YoY. The earnings per share (EPS) of Coforge Ltd stood at 11.07 during Q2 FY 2025-26. However, the stock has outperformed over the long term, with a year-to-year rise of 5.17% compared with the Sensex’s 6.05% increase. 

How have Shares of Coforge performed recently?

Over the last month, Coforge’s share price has increased by 2.84%, rising from ₹1,809 to ₹1,820. The company’s share price has surged by 5.09% over the last year. The stock hit a 52-week high of ₹2,005.36 and a 52-week low of 1,194.01, with a P/E ratio of 44.73 and a dividend yield of 0.21%. The growth over the past six months is approximately 8.21%, and over the past year, approximately 8.17%.

Is Coforge a Good Stock to Buy?

Strong order intake and large deal wins across North America and the ASEAN regions. Expansion in digital transformation services and acquisitions of Cigniti Technologies to strengthen offerings, improve operational efficiency and sustain growth in international markets. Coforge continues to deliver strong growth through strategic initiatives, robust deal pipelines, and consistent execution in its key markets. Coforge competes with large IT services players such as TCS, Infosys, Wipro, and HCL Tech, as well as smaller companies in specific service domains and industry verticals.

Increasing IT spend by BFSI clients, especially in areas like cloud migration, data analytics, and digital channels. The rapid adoption of emerging technologies like AI/ML and robotic process automation among enterprises is expanding the addressable market.  

Tap to Access Best Research Pieces

Coforge: Share Price Target 

Coforge has an average share price target of 2036.67. The consensus estimate represents an upside of 12.64% from the last price of 1808.20. View 18 reports from 8 analysts offering long-term price targets for Coforge. According to Wall Street analysts, the average one-year price target for Coforge is ₹2,0045.50, with a low forecast of ₹1,987.40. Coforge’s recent movement predictions & forecasts of Coforge Limited (COFORGE). Price is below an essential level of 1804.75 on the charts, and if price remains below this level, the stock might show a short-term decline. 

Coforge: Future Predictions By Analysts

Coforge reported a Q2 FY 2025-26 revenue of ₹3985.7 crores, up 32.2% YoY, with net profit increased 15.3% to ₹425.4 crores. For the full year FY2025-2026, revenue reached ₹12215.4 crores and profit touched ₹963.5 crores. Analysts at Choice Institutional expect new project revenue, EBIT, and PAT to grow at compound annual growth rates (CAGRs) of 21.7%, 26.4%, and 38.6%, respectively, over FY25-28. The brokerage reaffirmed its ‘Buy’ rating with a revised target price of ₹2,015. The company’s management highlighted that despite seasonal variations in Q3, the timely increment of newly won projects and a strong pipeline would likely drive growth in the second half of FY26. 

Coforge Ltd’s shares rose 5% after analysts projected a 29% upside, citing strong Q4 results and a positive FY26 outlook. Brokerages such as Antiques, Jefferies, and Nauvama maintained “buy” ratings and revised price targets. The company reported 3.4% sequential revenue growth and a record $2.1 billion in new orders, reinforcing its growth in macro challenges. 

Coforge: Analysts’ Rating 

• The average 12-month price target is ₹2036.70, and the consensus rating is Hold (mix of Buy, Hold, & Sell). 
• The analyst’s target range is between a high of ₹2,005.36 and a low of ₹1,194.70. 
• According to some analysts, some concerns remain with a ‘Reduce’ call of ₹1,194.70. 
• The analyst’s sentiment is mixed; there have been recent bullish calls (ICICI, JM), but also cautious ones (Motilal Oswal, Nuvama). 

What is the Right Time to Buy Coforge’s Shares?

According to analysts, Coforge’s share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in Coforge. There are some factors to consider before investing in Coforge Company shares.

• Strong Fundamentals: Investors should review Coforge Company’s fundamentals before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it.    
• Financing Partnerships: Financing partnerships bridge the gap between customers and financial institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.   
• Growth in the Technical Sector: The company is well-positioned in the electronic demat sector to deliver benefits to Coforge. This dominant sector increases demand and prices for Coforge.
• Highly Volatile: Prices are highly volatile, leading to significant price changes that have a substantial impact on Coforge Company’s stock price. Investors must review the market structure before investing in Coforge Company shares.

Download the Univest iOS App or the Univest Android App to get daily stock recommendations and insightful research pieces!

Conclusion

The investment case for Coforge is supported by its broad-based business momentum, diversified vertical exposure, and sustained margin improvement. The company continues to demonstrate operational excellence through expanding offshoring share, robust order inflows, and increasing client mining depth across large accounts, with a strong culture driving low attribution, healthy cash generation, and deep domain expertise in BFS, insurance, and travel verticals. Strong order intake and large deal wins across North America and the ASEAN regions. Expansion in digital transformation services and acquisitions of Cigniti Technologies to strengthen offerings, improve operational efficiency and sustain growth in international markets. Coforge continues to deliver strong growth through strategic initiatives, robust deal pipelines, and consistent execution in its key markets.

FAQs

What are the key reasons to invest in the Coforge Shares?

Ans. There are several reasons behind the Coforge share price increase, including robust financial status, substantial quarterly numbers, a strong order book, operational leverage, and high profitability. The company’s forward-looking statements and strong quarterly performance provide a comprehensive view of its financial strategy and operational expectations. However, investors should note that these projections are based on current expectations and may be subject to changes in the business environment. 

What are the Budget 2025-26 opportunities for Coforge Ltd?

Ans. There are highlights of the Coforge in the Budget 2025-26, such as a digital transformation push, global capability expansion, tech skill development, and AI & Automation Incentives with the Sustainability & ESG Focus. Increased allocation for upskilling and tech education to strengthen India’s IT talent pool, supporting Coforge’s hiring and innovation pipeline. 

What are the factors that affect the share price of Coforge Ltd?

Ans. According to analysts, Coforge’s share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in Coforge. There are some factors to consider before investing in Coforge Company shares. Prices are highly volatile, leading to significant price changes that have a substantial impact on Coforge Company’s stock price. Investors must review the market structure before investing in Coforge Company shares. 

What are the future predictions of Coforge Ltd?

Ans.  Coforge reported a Q2 FY 2025-26 revenue of ₹3985.7 crores, up 32.2% YoY, with net profit increased 15.3% to ₹425.4 crores. For the full year FY2025-2026, revenue reached ₹12215.4 crores and profit touched ₹963.5 crores. Analysts at Choice Institutional forecast new project revenue, EBIT, and PAT to grow at compound annual growth rates (CAGRs) of 21.7%, 26.4%, and 38.6%, respectively, over FY25-28. The brokerage reaffirmed its ‘Buy’ rating with a revised target price of ₹2,015. Strong order intake and large deal wins across North America and the ASEAN regions. Expansion in digital transformation services and acquisitions of Cigniti Technologies to strengthen offerings, improve operational efficiency and sustained growth in international markets.

Also Explore  

Univest Screeners