Coforge jumps 10% on Q4FY26 profit surge; 47% upside

What triggered the sharp move in Coforge

Shares of Coforge saw heavy buying on Wednesday, May 6, after the mid-tier IT services firm reported a multifold jump in consolidated net profit for Q4FY26. The stock climbed as much as 10% in early trade to hit the upper circuit at ₹1,285.60 on the NSE. Trading later resumed after the exchange revised the upper circuit limit to ₹1,344 per share. The rally came at a time when broader markets were also positive, helping sentiment around IT counters. But the stock-specific trigger was the Q4FY26 earnings print and follow-up notes from brokerages.

Price action and broader market context

At 09:48 AM, Coforge shares were trading at ₹1,268, up 8.49% from the previous close of ₹1,168.80 on the NSE. The stock was described as continuing to see solid buying interest from investors after the circuit move. In the same window, the Nifty 50 was up 109 points, or 0.45%, at 24,141. The combination of a strong earnings headline and supportive market tone likely amplified the early momentum.

Q4FY26 results: profit jumps, revenue grows 30% YoY

Coforge reported consolidated net profit (attributable to owners of the company) of ₹612.3 crore in Q4FY26. This was a multifold jump from ₹261.2 crore in the same quarter of the previous fiscal year. Revenue from operations rose 30% year-on-year to ₹4,450.4 crore, compared with ₹3,422.2 crore a year earlier. Separately, the report noted that the Q4FY26 profit more than doubled on a quarter-on-quarter basis, while revenue grew 5.2% sequentially. Another detail highlighted in the coverage was that the profit jump was driven by a major one-time tax benefit along with strong operational growth.

Brokerage tone turns positive after the Q4 print

Brokerage commentary played a visible role in sustaining interest after the results. Elara Capital upgraded the stock to ‘Accumulate’ from ‘Reduce’, while Choice Institutional Equities reaffirmed its ‘Buy’ rating. Both firms issued target prices that implied upside from the then-current market price, though the magnitude differed sharply. The notes focused on growth visibility, deal momentum, and profitability signals.

Elara Capital upgrades to ‘Accumulate’, targets ₹1,380

Elara Capital raised its rating to ‘Accumulate’ from ‘Reduce’ and set a target price of ₹1,380. The brokerage said the target was based on 21x (unchanged) FY28E P/E. It pointed to stronger Q4 growth in healthcare, travel and emerging verticals. Elara added that BFSI revenue growth was relatively muted due to a client-specific issue. Based on the commentary in the report, the target price implied an upside potential of 7.34% from the current market price referenced in the article.

Order book commentary and FY27 growth view

Elara said the executable order book remains strong. It also stated that even with a conservative book-to-bill multiple, mid-teen growth is a possibility in FY27. The note also mentioned that Coforge shares had seen a 30% correction over the past three months. Elara linked that correction to concerns around an ongoing acquisition of a company with relatively low organic revenue growth.

Choice Institutional Equities reiterates ‘Buy’, sees ₹1,900

Choice Institutional Equities retained its ‘Buy’ rating with a target price of ₹1,900. The brokerage said this target was based on FY28E EPS of ₹67.8. In the same note, the target price was presented as implying an upside potential of 47.79% from the current market price. Analysts Dhanshree Jadhav and Shreya Mehra said Coforge’s Q4FY26 performance reinforced confidence in its growth and margin trajectory, supported by strong deal momentum, robust client mining, and a healthy executable order book.

Margin expansion, AI efficiency, and portfolio shifts

Choice highlighted margin expansion to 16.6%, describing it as evidence of effective cost control and early benefits from AI-led efficiency. The analysts also flagged that an exit from low-margin businesses may keep near-term growth (Q1FY27) subdued, but framed it as a strategic shift toward higher-quality, margin-accretive growth. The note cited continued traction in large deals, “Encora-led synergies”, and scaling up AI capabilities as drivers of visibility for FY27E. It also referenced outcome-based delivery through “Agentic AI” and “Mod Squads”, along with internal AI adoption.

Key numbers and targets at a glance

What analysts are projecting beyond Q4FY26

Choice said it expects revenue, EBIT and PAT to grow at a CAGR of 21.2%, 25.7% and 29.9% over FY26 to FY29E. The report also indicates that brokerages are watching execution signals such as order book strength, deal momentum, and the impact of portfolio exits on near-term growth. While targets differ, both notes link the stock’s re-rating potential to sustained delivery, margin discipline, and the mix of vertical performance.

Conclusion

Coforge’s sharp move on May 6 followed a strong Q4FY26 earnings print, with net profit rising to ₹612.3 crore and revenue growing 30% YoY to ₹4,450.4 crore. The stock also benefited from supportive brokerage actions, including Elara’s upgrade to ‘Accumulate’ and Choice reiterating ‘Buy’ with a higher target. Going forward, investors are likely to track how the company sustains growth after the quarter’s one-time tax benefit impact, and how near-term growth shapes up amid exits from low-margin businesses, as flagged in the brokerage notes.