Coforge shares surged 31% in just 4 weeks, hitting an 8-month high of ₹1,887.70 on Thursday, marking a significant turnaround from earlier declines. According to Business Standard, the stock gained 4% in Thursday's intraday trading and has bounced back 87% from its 52-week low of ₹1,008.50 touched on March 17, 2026. The stock is trading at its highest level since December 12, 2025, with average trading volumes jumping over three-fold as a combined 3.6 million equity shares changed hands on NSE and BSE. This bullish momentum follows the company's formal launch of a dedicated Private Equity (PE) Business Unit, designed to help PE funds drive operational transformation and value creation across their portfolio investments.
The IT services company has launched a dedicated Private Equity business unit to help funds drive operational transformation and value creation across portfolio companies. As reported by The Economic Times, the new vertical will leverage Coforge's acquisition integration expertise and AI capabilities to support portfolio optimisation, EBITDA growth and technology-led transformation. The company is bringing its tested acquisition integration playbook, which successfully executed turnaround operations for brands such as NIIT Technologies, Incessant Technologies, SLK Global, Cigniti Technologies, and Encora LLC directly to institutional investors.
Coforge has demonstrated robust financial performance with consolidated revenue reaching ₹16,402.70 crore in March 2026, representing a significant increase from ₹12,050.70 crore in March 2025, marking a 36.12% year-over-year growth. As reported by Moneycontrol, the company's quarterly revenue for June 2026 stood at ₹5,527.70 crore, up from ₹4,450.40 crore in March 2026. Net profit showed strong momentum, climbing to ₹1,674.50 crore in March 2026 from ₹963.50 crore in March 2025, representing a 73.79% increase. The company maintains strong guidance with FY27 EBITDA margin target of 20.5-21.0% and standalone EBIT margin of 16.5-17.0%. Analysts at Axis Securities expect sustained earnings growth driven by deal ramp-ups, AI monetisation and Encora synergies.
Coforge maintains a record executable order book of USD 2.23 billion (+44% YoY), providing strong FY27 earnings visibility according to Choice Institutional Equities. The company's AI-led engineering, cloud and data services now contribute 86% of revenues, positioning it well to capture the next wave of enterprise AI operationalisation. With 11,000+ data/AI practitioners, eight AI platforms and 100+ reusable AI agents, Coforge appears well positioned to sustain above-industry growth alongside margin expansion. The company's debt-to-equity ratio improved to 0.04 in March 2026, indicating low debt reliance, while cash flow from operating activities improved to ₹1,791 crore from ₹1,237 crore in March 2025.
Multiple brokerages maintain positive ratings on Coforge with Axis Securities maintaining a 'Buy' rating with a target price of ₹2,050, based on 28x FY28E EPS. ICICI Securities also recommends a 'Buy' rating with a target price of ₹1,950, valuing it at 27x FY28E EPS. The strong performance is attributed to better-than-guided margin performance despite Encora integration and robust large-deal pipeline. The company's operating margin improved to 14.18% in March 2026 from 11.87% in March 2025, indicating enhanced operational efficiency. With its global digital services across BFSI, TTH, Healthcare, and Hi-Tech sectors, Coforge is well-positioned to capitalize on the growing AI transformation market.
