Coforge Shares Soar 6%, Climbing 16% in Three Days After Impressive Q4 Results: What’s Next for Investors?
Shares of Coforge displayed a notable surge on Friday, with a 6% increase that propelled the stock to an intraday high of Rs 1,359.7 apiece on the NSE. This rally marks a continuation of the strong rebound seen in recent trading sessions, with Coforge’s stock price climbing over 16% in just three days following the release of impressive Q4 results. From hitting a 52-week low of Rs 1,008.10 on March 17, the stock has rebounded nearly 35%, showcasing investor confidence in the company’s financial recovery and growth potential.
The Q4 results, reported on May 5, revealed a substantial net profit of Rs 612.3 crore for the January-March quarter of the financial year 2026, representing a striking 134% increase from the Rs 261.2 crore net profit recorded during the same quarter of the previous year. Coforge also demonstrated robust revenue growth, with a 30% year-on-year increase to Rs 4,450 crore. CEO Sudhir Singh emphasized the company’s continuous exceptional performance, projecting a strong future trajectory with an order executable of $1.75 billion, which signals confidence in sustaining momentum and achieving revenue growth into FY27.
Brokerage firms are reacting positively to these results, with Jefferies projecting a 9-11% increase in earnings estimates alongside a favorable margin outlook, suggesting a 23% EPS CAGR over FY27-29. Nomura has assigned a ‘Buy’ rating and raised the target price to Rs 2,100, indicating a 63% upside potential. Additional analysts from Nuvama Institutional Equities and Motilal Oswal have also issued ‘Buy’ calls on Coforge shares. Meanwhile, Elara Capital has upgraded its rating to ‘Accumulate.’ Even though a slight deceleration in performance is anticipated in Q1 FY27 due to the ongoing exit from lower-margin operations, expectations remain high for the company to outperform industry standards, especially following the completion of the Encora acquisition, projected to contribute approximately $550 million in revenue in FY27.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)