Coforge Q4 FY26: Brokerages See Up to 54% Upside

What changed after Coforge’s Q4 FY26 results

Coforge remained in focus after its Q4 FY26 results triggered a fresh set of positive brokerage notes. Over the past three sessions, the stock rose more than 16% as multiple firms reiterated bullish calls. The renewed interest was also linked to commentary on margins and deal momentum after the quarterly print. Several brokerages pointed to Coforge’s positioning in AI-led services as an additional support for demand.

The flow of notes also showed a wide spread of target prices, but a broadly positive stance. Targets cited ranged from ₹1,670 to ₹2,100 in the brokerage commentary referenced, and later notes included a higher target of ₹2,200 from Nuvama. The overall tone remained that the Q4 performance and FY27 margin guidance improved confidence in execution.

CLSA sticks with “high-conviction outperform”, trims target

CLSA said it expects the company to benefit from the rising adoption of artificial intelligence, and it retained its “high-conviction outperform” rating on Coforge. The brokerage trimmed its target price to ₹2,075 from ₹2,095. Despite the marginal cut, CLSA said the revised target still implies a 54% potential upside over the current market price cited in the note.

CLSA also revised its earnings assumptions upward versus its prior estimates. It increased its FY2027 EPS estimate by 9% and its FY2028 EPS estimate by 5%. The note, as cited, linked the longer-term upside to Coforge’s ability to participate in technology spending tied to AI adoption.

A cluster of Buy ratings and revised targets

Several other brokerages reiterated Buy calls and, in some cases, raised price targets after the Q4 FY26 results. Geojit recommended a ‘Buy’ in the ₹1,350 to ₹1,390 range, with a target of ₹1,670 over the next three to six months, and a stop loss at ₹1,100. Axis Direct maintained a ‘BUY’ rating with a target of ₹1,690, citing growth potential supported by deal wins and execution.

Jefferies reiterated ‘Buy’ and raised its target price to ₹1,860 from ₹1,620, calling Coforge a preferred pick in the sector (as per the Reuters reference in the source). Nomura retained ‘Buy’ and raised its target price to ₹2,100 after Q4, while HSBC maintained a ‘Buy’ with a target price of ₹1,710. In another section of the provided flow, Citi was said to have maintained a buy rating with a target price of ₹1,375.

Motilal Oswal and Nuvama highlight margin and profitability focus

Motilal Oswal reiterated its ‘buy’ rating and raised its target price to ₹1,800, stating upside potential of up to 54%. It described Coforge as a structurally strong mid-tier player, supported by an improving margin profile, strong deal wins, and steady demand in AI-led managed services. Motilal Oswal also said it valued the stock at 26x FY28E EPS for the ₹1,800 target.

Nuvama maintained a ‘buy’ call with a target price of ₹2,200, and indicated the company is chasing higher profitability and cash flows. In the note cited, Nuvama said it retained ‘BUY’ with a target of INR 2,200 (from INR 2,100) valuing the stock at 32x FY27E P/E, and added that it currently trades at 20x FY27 P/E.

Other notable upgrades and target resets

Prabhudas Lilladher lifted its target to ₹2,020 from ₹1,870, citing strong execution, steady revenue growth and sustained momentum in large deal wins. Elara Capital upgraded its rating to ‘Accumulate’ from ‘Reduce’ with a target price of ₹1,380, based on 21x FY28E P/E, and noted the stock had seen a 30% correction in the past three months.

Choice Institutional Equities reiterated a ‘Buy’ rating with a target price of ₹1,900, based on FY28E EPS of ₹67.8, implying 47.79% upside from the then market price cited. Separately, another reference in the provided flow mentioned Choice Equity Broking with a target of ₹2,015.

Stock move: rally, circuit revision, and broader market context

Coforge led gainers after reporting a sharp rise in Q4 FY26 profit and outlining an upbeat FY27 margin target (profit figure was not specified in the provided text). On May 6, the stock rallied as much as 10% to ₹1,285.60 on the NSE in early trade. Trading resumed after the exchange revised the upper circuit to ₹1,344.

At 09:48 AM, the stock traded at ₹1,268, up 8.49% from its previous close of ₹1,168.80. In the same snapshot, the Nifty 50 was up 109 points (0.45%) at 24,141. Another line in the provided text also referenced about a 2% uptick at ₹1,305 post the numbers.

What the Q4 FY26 business metrics show

Beyond broker targets, a few operating metrics were also highlighted. Revenue was reported as growing 30% to ₹4,450.4 crore. The order book was cited at $1.75 billion. These two data points were repeatedly referenced as the basis for constructive brokerage commentary around visibility and execution.

The management commentary referenced in the provided text included margin guidance for FY27. The company was said to have already given guidance of 20.5% to 21% for EBITDA margin for FY27 and spoke about building on it in FY28 with strategic steps.

Key numbers and brokerage targets at a glance

Market impact: why targets cluster above the traded price

The post-result move and the spread of targets indicate that brokerages largely viewed the Q4 FY26 performance as a confirmation of execution. In the provided data set, the stock’s sharp early-session rise to ₹1,285.60 and the subsequent circuit revision to ₹1,344 reflected strong near-term sentiment after the numbers.

Broker notes also focused on margin trajectory and deal wins. References to AI-led managed services and improving margin profiles appeared in multiple broker comments, including Motilal Oswal and CLSA. According to the LSEG-compiled data cited, 22 of 30 brokerages rated the stock “buy” or higher, and the median price target was ₹1,870.

Analysis: what investors should track next

From the information provided, two monitorables stand out. First is delivery versus the stated FY27 EBITDA margin guidance of 20.5% to 21%, along with any incremental commentary on how FY28 could build on that base. Second is whether the order book figure of $1.75 billion translates into consistent revenue conversion and execution momentum.

The broker target range also highlights dispersion around valuation and assumptions. Notes cited 26x FY28E EPS (Motilal Oswal) and 32x FY27E P/E (Nuvama), suggesting different approaches to looking at earnings and the margin path. CLSA’s FY27 and FY28 EPS estimate upgrades (9% and 5%, respectively) add another lens on how earnings expectations are being reset.

Conclusion

Coforge’s Q4 FY26 results triggered a strong share-price reaction and a new round of bullish brokerage notes, with targets cited up to ₹2,200. The key pillars in the commentary were revenue momentum, the $1.75 billion order book, and management’s FY27 EBITDA margin guidance of 20.5% to 21%.

Near-term attention is likely to remain on follow-through from the Q4 performance and any additional disclosures from investor interactions that clarify how the company plans to sustain margins and execution into FY27 and FY28.