Coforge Q4 FY26: Broker Targets Up to Rs 2,200

Stock extends gains after results-driven jump

Coforge Ltd shares climbed for a second straight session on Thursday, May 7, edging up 0.24% to Rs 1,283.80 in early trade on the BSE. The move followed a sharp reaction a day earlier, when the stock closed 9.62% higher at Rs 1,280.70 after the company reported its Q4 earnings. In another early-session snapshot cited in reports, Coforge rose 10.77% to Rs 1,294.15 versus the previous close of Rs 1,168.30. The day’s rally also pushed the company’s market capitalisation to Rs 42,562 crore in that update.

The sharp price action came as Q4 revenue and EBITDA margins were described as beating expectations in brokerage notes. Several brokerages reiterated positive ratings while raising estimates or target prices, citing improved margin outlook, better cash conversion, and a healthy order book.

Q4 FY26 numbers in focus

Coforge reported consolidated net profit of Rs 612.3 crore for the quarter, compared with Rs 250.2 crore in the same quarter last year. (A separate report cited Rs 261.2 crore as the comparable base, while keeping the Q4 FY26 profit at Rs 612.3 crore.) Revenue from operations rose to Rs 4,450.4 crore from Rs 4,231.5 crore.

Broker notes and market reports also pointed to EBITDA margin expansion, with one update stating the margin improved to 15.6% from 13.1% in the prior quarter. The earnings print, coupled with commentary around deal wins and operational clean-up, helped drive the stock’s outsized move in the sessions immediately after the results.

Order book and deal momentum signals

Jefferies highlighted robust deal wins and pointed to a 16% year-on-year rise in the executable order book. Another report pegged the executable order book at $1.75 billion, framing it as a key visibility metric.

Jefferies also said March 2026 results exceeded expectations, driven by stronger-than-expected margins and better free cash flow conversion. The brokerage added that the company’s clean-up of low-margin India business remains ongoing, but still saw visibility for double-digit organic growth on the back of the order book.

What brokerages changed: targets and ratings

Brokerage reactions clustered around “Buy” ratings, but target prices varied widely based on valuation preferences and near-term execution assumptions.

PL Capital upgraded its target price to Rs 2,020 and maintained a ‘Buy’ rating, flagging a 57% upside from the then-current levels cited in its note. It raised its EBIT margin estimates to 15.1% and 15.3% for FY27E and FY28E (from 13.8% and 14% earlier) following a re-classification. It also factored in interest costs on the $150 million item referenced in the note, along with equity dilution linked to Cigniti minority issuance and an Encora swap.

Motilal Oswal reiterated ‘Buy’ and kept a target price of Rs 1,800, describing Coforge as a top pick. It raised estimates by 3-4% while factoring the exit of the India pass-through business (noted as a 2-3% revenue impact) and a revenue restatement where hedge impact is excluded from Ebit. It also built in a 100-150 basis point improvement in margin guidance.

Broker target price snapshot

How the stock traded around the result

Reports described an aggressive post-results move, including a surge to ₹1,285.60 after the Q4 print, with one update stating the stock hit an upper circuit on the NSE during morning deals. Trading resumed after the exchange revised the upper circuit level to ₹1,344 in that account.

Another market update said shares opened at ₹1,261 and rose to a high of ₹1,285.60, calling it a 10% rally from the previous close. By Thursday morning, the stock was holding near the same zone, with the BSE quote at Rs 1,283.80.

Market impact: what changed in the narrative

The immediate market response reflected two things: the magnitude of the profit jump and a perception of improving operating quality through margin expansion and business mix changes. Brokerages that raised estimates focused on restatements and re-classifications that improve reported margins, and on the exit of lower-quality revenue streams such as the India pass-through business.

Valuation discussions were also part of the post-results narrative. Jefferies called valuations at 19x one-year forward PE attractive, while Nuvama referenced around 20x FY27 PE and compared it at a discount to peers such as Persistent. Separately, one report cited a TTM P/E range of 30-48 and contrasted it with peer multiples, underlining why target prices can diverge even when ratings remain positive.

Technical view cited by market watchers

A technical note in the coverage said a sustained close above 1,270 could trigger fresh momentum toward the 1,350 zone. This view was presented alongside the earnings-led rerating calls from brokerages, but it remains a price-action reference rather than a fundamental forecast.

Key numbers at a glance

Why this set of upgrades matters

The cluster of raised targets and reiterated Buys suggests brokerages are increasingly anchoring their Coforge thesis on margin durability and cash conversion, not just headline revenue growth. Notes also show analysts are adjusting models for structural changes such as re-classifications, revenue restatements, and the planned or ongoing clean-up of low-margin India business.

At the same time, the spread between the highest targets (Rs 2,200) and the more cautious calls (Rs 1,115 to Rs 1,240) signals that expectations on execution and valuation remain the key swing factors.

Conclusion

Coforge’s Q4 FY26 results triggered a sharp re-rating in the stock, with profit rising to Rs 612.3 crore and revenue increasing to Rs 4,450.4 crore. Multiple brokerages maintained Buy recommendations and lifted targets, with the most bullish calls reaching Rs 2,200. The next set of cues for investors will likely come from how margins sustain after the reported re-classifications, and how deal momentum translates into delivery against the $1.75 billion executable order book cited in reports.