Coforge hits 10% upper circuit; targets up to ₹1,900

Stock rallies after Q4FY26 profit surprise

Shares of Coforge were in strong demand in early trade on Wednesday, May 6, after the IT services firm reported a multifold surge in consolidated net profit for Q4FY26. The buying rush pushed the stock to the upper circuit on the NSE during morning deals. The move came alongside a broader positive tone in the market, with the Nifty 50 trading higher at the time. Broker commentary also supported sentiment, with at least two firms reiterating or upgrading their stance after the quarterly print.

Price action: upper circuit hit, then revised

Coforge rose as much as 10 percent to hit the upper circuit of ₹1,285.60 per share in early trade on the NSE. Trading later resumed after the exchange revised the upper circuit to ₹1,344 per share. The counter continued to see buying interest after the revision.

At 09:48 AM, Coforge shares were trading at ₹1,268, up 8.49 percent from the previous close of ₹1,168.80 on the NSE. The sharp move, combined with the circuit action and the subsequent revision, highlighted the intensity of demand immediately after the Q4FY26 update.

Broader market context: Nifty 50 in the green

The broader market was also positive during the same window. The benchmark Nifty 50 was up 109 points, or 0.45 percent, at 24,141 levels. While the Coforge move was stock-specific, the supportive tape helped risk appetite for large moves in individual counters.

Elara Capital upgrades to Accumulate

Elara Capital upgraded Coforge to ‘Accumulate’ from ‘Reduce’ after the Q4 results. The brokerage set a target price of ₹1,380, based on 21x (unchanged) FY28E P/E. Elara pointed to stronger Q4 growth in healthcare, travel and emerging verticals.

It also noted that BFSI revenue growth was relatively muted due to a client-specific issue. Based on the then-current market price referenced in its note, Elara said its target implied an upside potential of 7.34 percent.

Choice Institutional Equities maintains Buy, sees ₹1,900

Choice Institutional Equities retained its ‘Buy’ rating on Coforge, assigning a target price of ₹1,900. The target was based on FY28E EPS of ₹67.8. Choice said the implied upside potential was 47.79 percent from the current market price.

According to analysts Dhanshree Jadhav and Shreya Mehra of Choice, Coforge’s Q4FY26 performance reinforced confidence in its growth and margin trajectory. The brokerage cited strong deal momentum, robust client mining, and a healthy executable order book as key support points.

Growth expectations highlighted by analysts

Choice outlined expected growth across key financial lines over the coming years. The brokerage expects revenue, EBIT, and PAT to grow at a CAGR of 21.2 percent, 25.7 percent, and 29.9 percent, respectively, over FY26 to FY29E.

These are forward estimates from the brokerage note and reflect how analysts are framing the company’s medium-term trajectory after the Q4FY26 results.

Key numbers at a glance

Broker targets: what the market is weighing

Conclusion: results-driven move with analyst support

Coforge’s sharp rise on May 6 was driven by a strong immediate reaction to its Q4FY26 performance, including a reported multifold surge in consolidated net profit. The stock hit the upper circuit early, and trading continued after the exchange revised the band. Brokerages added to the positive tone, with Elara upgrading to Accumulate and Choice maintaining a Buy, setting targets of ₹1,380 and ₹1,900, respectively. Investors are likely to watch how the post-results momentum sustains after the circuit-driven move and as updated views from the Street continue to come in.