Coforge Q4FY26 profit jumps 145%, stock up 11%

Coforge shares surge after Q4FY26 earnings beat

Coforge Ltd shares rallied sharply in early trade on Wednesday, May 6, after the mid-tier IT services firm reported a strong set of Q4FY26 results. The move was led by a multifold jump in consolidated net profit and an operating performance that brokerages said came in above expectations on revenue growth and margins. The stock was also supported by a string of positive brokerage notes that upgraded ratings or reiterated bullish calls.

In parallel, shares of Cigniti Technologies, which has merged into Coforge, also saw strong buying interest during the same session. The earnings release and related disclosures brought focus back to Coforge’s margins, deal intake and the near-term revenue visibility indicated by its executable order book.

Stock moves: upper circuit, revised limits, and early prices

Coforge shares rose as much as about 10% in early deals and hit an upper circuit of ₹1,285.60 per share on the NSE, before trading resumed after the exchange revised the upper circuit limit to ₹1,344 per share. In another early snapshot, the stock was reported up 10.77% at ₹1,294.15 versus the prior close of ₹1,168.30. Around 09:48 AM, the stock was also quoted at ₹1,268, up 8.49% from the previous close of ₹1,168.80.

The company’s market capitalisation was reported at ₹42,562 crore during the session. Sentiment in the broader market was mixed to positive in different snapshots, with the Nifty 50 quoted up 109 points (0.45%) at 24,141 levels in early trade.

Q4FY26 financial snapshot: profit, revenue and EBITDA

Coforge reported a 144.8% rise in Q4FY26 net profit. Profit for the March quarter rose to ₹612.3 crore on a quarter-on-quarter basis from ₹250.2 crore in the December 2025 quarter. On a year-on-year basis, profit rose 134% from ₹261.2 crore a year ago.

Revenue from operations rose 5.2% quarter-on-quarter to ₹4,450.4 crore in Q4FY26 from ₹4,231.5 crore in Q3. On a year-on-year basis, revenue increased 30%.

EBITDA rose 18.5% quarter-on-quarter to ₹916.8 crore in Q4FY26 from ₹773.6 crore in Q3. The company’s total expenses in Q4FY26 were also reported higher, rising 24% year-on-year to ₹3,794 crore from ₹3,060 crore.

One-time tax impact and disclosed expenses

Coforge said the reported Q4FY26 PAT reflects the reversal of deferred tax liability due to the Cigniti merger, as per a regulatory filing. It added that the effective tax rate for the quarter was impacted by the release of deferred tax liabilities aggregating ₹181 crore, recognised in the profit and loss account pursuant to the merger.

The company also disclosed acquisition and integration-related expenses for Encora of ₹50.1 crore, along with legal expenses related to a cybersecurity case of ₹3.5 crore. These items provide context to the quarter’s profitability and the reconciliation between operating performance and reported earnings.

Margins: EBIT margin at 16.6%

On profitability, brokerages highlighted margin performance during the quarter. Motilal Oswal Financial Services (MOFSL) said EBIT margin stood at 16.6%, above its estimate of 15% adjusted. The margin print was also cited by analysts as evidence of cost control during the quarter.

MOFSL also pointed to constant-currency growth. It said Coforge reported Q4 revenue growth of 2% quarter-on-quarter in constant currency terms, above its estimate of 1.5% quarter-on-quarter.

Deal intake and executable order book

MOFSL said the company reported order intake of USD 648 million in Q4, down 69.5% year-on-year, with five large deals. Despite the lower year-on-year intake figure, the brokerage highlighted a 12-month executable order book of USD 1,750 million.

The company’s management also referenced the executable order book as a key indicator of near-term momentum. Coforge CEO and Executive Director Sudhir Singh said the company enters FY27 with “strong momentum and confidence” backed by an order executable of USD 1.75 billion.

What brokerages said: targets from ₹1,380 to ₹1,900

Brokerage commentary was a key driver of sentiment after results. MOFSL assigned a price target of ₹1,800 and said this implied about 54% upside for the stock.

Elara Capital upgraded its rating to ‘Accumulate’ from ‘Reduce’ and set a target price of ₹1,380, based on 21x (unchanged) FY28E P/E. Elara cited stronger Q4 growth in healthcare, travel and emerging verticals, while noting BFSI revenue growth was muted due to a client-specific issue.

Choice Institutional Equities reiterated its ‘Buy’ rating with a target price of ₹1,900, based on FY28E EPS of ₹67.8, implying an upside potential of 47.79% from the then-current market price cited in the note.

Cigniti shares rise after merger into Coforge

Cigniti Technologies shares also moved higher during the session. The stock surged 12% to ₹1,298.70 versus the previous close of ₹1,160.70. The move came alongside Coforge’s results and disclosures that referenced deferred tax impacts linked to the Cigniti merger.

FY26 full-year numbers and FY27 margin guidance

For the full fiscal year FY26, Coforge’s net profit came in at ₹1,555.7 crore, a 91.5% increase from ₹812.1 crore in FY25. Revenue from operations for FY26 was reported at ₹16,402.7 crore, up 35.8%.

On outlook, Sudhir Singh said the company expects “robust revenue growth” in FY27 and plans to deliver consolidated EBITDA of more than 20.5% in FY27. The statement was linked to the company’s order executable of USD 1.75 billion.

Key numbers at a glance

Market impact: what changed immediately

The immediate market impact was visible in the sharp price reaction and the circuit filter adjustment on the NSE as buying interest intensified. Coforge’s rally also spilled over into Cigniti shares, reflecting investor focus on integration outcomes and financial reporting impacts.

For investors, the key takeaways from the quarter were the jump in reported profit, the margin print cited by brokerages, and management’s FY27 EBITDA guidance. At the same time, the disclosed one-time tax reversal and specific expense line items were important for interpreting the quality and sustainability of the quarter’s earnings.

Analysis: why the Q4FY26 print mattered

Coforge’s Q4FY26 results combined three elements that typically move IT services stocks in the short term: revenue growth versus expectations, margin delivery, and commentary on forward visibility through the executable order book. MOFSL’s note specifically framed the constant-currency growth and EBIT margin as above estimates.

Brokerage targets also provided an anchor for sentiment, with published price objectives spanning ₹1,380 to ₹1,900 and MOFSL indicating a 54% upside via a ₹1,800 target. Separately, management’s stated plan for more than 20.5% consolidated EBITDA in FY27 set a measurable marker that markets can track in subsequent quarters.

Conclusion

Coforge’s sharp early-trade rally followed a Q4FY26 earnings report that showed profit rising to ₹612.3 crore, revenue reaching ₹4,450.4 crore, and EBITDA increasing to ₹916.8 crore. Brokerages highlighted better-than-expected constant-currency growth and an EBIT margin of 16.6%, while also focusing on the USD 1.75 billion executable order book.

The next set of cues for investors will come from how Coforge tracks its FY27 growth and EBITDA targets, alongside updates on deal wins and integration progress after the Cigniti merger.