Coforge Jumps 10% After Profit More Than Doubles In Q4, Beats Estimates 

Mumbai, May 6: Shares of Coforge surged as much as 10% in early trade after the IT services firm reported a strong set of March-quarter earnings, with profit more than doubling and comfortably beating Street expectations. 

The stock rose sharply as investors cheered robust growth across key metrics and a strong deal pipeline that signalled sustained momentum ahead. 

 Optimistic management commentary also drove the stock higher. Source: NSE 

At the time of writing, the stock was up 7.7% at Rs 1,258.7. 

Strong Show 

For the March quarter, consolidated net profit rose over 130% year-on-year at ₹612 crore, helped by strong revenue growth, improved margins and steady deal wins. 

Revenue also saw strong growth, rising about 30% year-on-year to ₹4,450 crore, aided by healthy demand across geographies, particularly in the Americas. The growth reflected a stable demand environment despite macro uncertainties. 

Operational performance improved meaningfully, with margins expanding, underscoring the company’s ability at converting revenue growth into profitability. 

Strong Orders 

Strong order intake emerged as a key highlight during the quarter under review with the company reporting deal inflows of around $648 million, as multiple large deals got signed during the period. The company’s executable order book stood at approximately $1.75 billion, providing strong revenue visibility for the coming quarters. 

Management commentary also sounded optimistic, with the company expecting to deliver robust revenue growth in FY27 and planning to deliver an EBITDA of more than 20.5% on a consolidated basis in FY27. 

Coforge has been sharpening its focus on AI capabilities, including through its recent acquisition of Encora, which is expected to further strengthen its digital engineering portfolio. 

Standing Out 

The earnings beat and upbeat outlook come at a time when the broader IT sector has been grappling with cautious client spending and macro headwinds. Coforge’s performance, therefore, stands out, reinforcing its positioning among the stronger mid-tier IT players. 

Investors responded positively to the results, with the sharp uptick in the stock reflecting confidence in the company’s growth trajectory and execution capabilities. 

Going ahead, the focus will remain on deal wins, margin sustainability and the pace of demand in key markets. With a strong order book and improving operational metrics, Coforge appears well-positioned to navigate the current environment and sustain growth momentum into the new fiscal year. 

Source:

• https://www.nseindia.com/get-quote/equity/COFORGE/Coforge-Limited