Coforge Q4 FY25: 5% Rally, Order Intake $2.1bn

Stock reacts to Q4 print

Coforge Ltd. shares rallied about 5% on May 6, 2025, after the mid-tier IT services company reported a strong January-March quarter (Q4 FY25). In early trade on the BSE, the stock was quoted at Rs 7,889, up 5.24% from the previous close, after hitting an intraday high of Rs 7,999. Another market update from the same morning showed the stock at Rs 7,726.5 around 9:20 am, up about 3%, after paring gains.

The immediate trigger was a mix of sharp year-on-year revenue growth, steady sequential momentum, and a large jump in quarterly order intake. Broker commentary added to the move, with multiple houses reiterating or upgrading ratings and publishing targets that implied meaningful upside from the then prevailing price.

Key Q4 FY25 numbers: profit, revenue, growth

Coforge reported consolidated net profit of Rs 261.2 crore in Q4 FY25, up 16.76% year-on-year from Rs 223.7 crore in Q4 FY24. Revenue from operations rose 47.1% year-on-year to Rs 3,409.9 crore, compared with Rs 2,318.4 crore in the year-ago quarter.

On a sequential basis, the company’s profit grew 21.2% and revenue increased 4.65%. In constant currency terms, Q4 revenue rose 3.4% quarter-on-quarter, aided by performance in banking, financial services and insurance (BFSI) and the travel vertical.

A separate Q4 FY25 results note in the provided text also pegged revenue at INR 34.1 billion (Rs 3,410 crore) and reported EBIT at INR 4.5 billion (Rs 450 crore). It also stated PAT at INR 2.9 billion (Rs 290 crore). These figures were presented alongside the same quarter’s operational commentary.

Order intake surges, order book strengthens

One of the most tracked metrics in Coforge’s Q4 FY25 update was bookings. The company reported an order intake of $1.1 billion in Q4 and said it signed five large deals across North America, the UK, and APAC.

The quarter’s order intake stood out against recent history cited in the text: $101 million in Q3 and an eight-quarter average of $151 million. Coforge also reported a 12-month executable order book of $1.5 billion. The executable order book was described as a near-term demand indicator and was reported to be up about 47% year-on-year in FY25.

Margins: EBITDA and EBIT in focus

Coforge’s EBITDA in Q4 FY25 grew 32.7% year-on-year to $18 million, with adjusted EBITDA margin improving 101 basis points sequentially to 18.7%. On EBIT margin, the text provides more than one lens.

One portion states EBIT margin contracted 166 basis points year-on-year to 13.2%, but improved 123 basis points sequentially. Another results update said EBIT margin was up 113 basis points quarter-on-quarter to 13.2% (versus a consensus estimate of 12.7%).

Separately, the provided conference-call style notes also referred to a higher “exit rate” phase, citing EBIT margin at 14.4% versus 10.7% a year ago, and a record Q4 EBIT margin of 16.6%. The drivers listed for the quarter included SG&A leverage (100 basis points), foreign exchange fluctuation (80 basis points), direct cost reduction due to third-party cost (50 basis points), lower marketing spend (40 basis points), and lower ESOP cost (20 basis points).

Dividend and stock split add to sentiment

Alongside results, Coforge announced shareholder-friendly actions. The company declared a fourth interim dividend of Rs 19 per share, with a record date of May 12, 2025.

It also announced a 1:2 stock split, set for June 4, 2025. These measures were positioned as steps to enhance liquidity and improve affordability for retail investors, and they coincided with the sharp move in the share price on results day.

Brokerages: target prices and stance

The post-results reaction was amplified by a wave of brokerage notes. Motilal Oswal reiterated “Buy” with a target price of Rs 11,000, implying about 47% upside from Rs 7,889. Nuvama Institutional Equities maintained “Buy” with a target of Rs 9,400 (about 19% upside) and highlighted a 174% year-on-year increase in total contract value (TCV) and a 48% rise in the 12-month executable order book.

Nomura assigned “Buy” with a target of Rs 9,730 (about 23% upside) and cited Coforge as its top pick among mid-cap Indian IT services firms in its note. Jefferies maintained “Buy” and raised its target to Rs 9,000 (about 14% upside). Choice Broking kept “Buy” with a target of Rs 10,765 (about 36% upside), while Centrum Broking maintained “Buy” but cut its target to Rs 9,331 from Rs 10,540, noting macro uncertainties.

Not all commentary was bullish. HSBC retained a “Hold”, citing macro challenges. Separately, BOB Capital Markets reiterated a “Sell” with a target of 6,202, flagging valuation concerns at 37x.

Snapshot table: key disclosed metrics

FY25 full-year context and operating indicators

For the full fiscal year, the text reported profit rising marginally to Rs 812 crore in FY25 from Rs 808 crore in FY24. FY25 revenue was reported at Rs 12,051 crore, up from Rs 9,009 crore in the previous fiscal year.

Operational indicators cited alongside the quarter included headcount of 33,497 (up about 403 quarter-on-quarter) and attrition at 10.9% (down 100 basis points quarter-on-quarter). Emkay Global upgraded Coforge to ‘add’ from ‘reduce’ with an unchanged target of Rs 8,200, referencing a roughly 22% stock price correction CY25-to-date and continued revenue momentum supported by deal intake.

What to watch next

Management commentary in the provided text pointed to confidence on growth visibility supported by the order book and pipeline. It also referenced expectations of organic growth in FY26 exceeding FY25 (described as mid-teen in constant currency year-on-year terms in the text).

From a market standpoint, investors are likely to watch whether the elevated order intake converts into sustained constant currency growth across quarters, and how margin levers such as ESOP costs, marketing spends, and operating leverage play out against macro uncertainty flagged by some brokerages.

Conclusion

Coforge’s May 6, 2025 rally followed a Q4 FY25 showing marked by 47.1% year-on-year revenue growth, reported net profit expansion, and a sharp jump in quarterly order intake to $1.1 billion. Brokerages largely stayed constructive, with several “Buy” calls and targets ranging up to Rs 11,000, while a minority highlighted valuation risks. The next set of quarterly results and updates on deal execution, margins, and the post-split trading dynamics remain the key near-term checkpoints.