The shares of Coforge jumped more than 6 percent on October 27 after the company released better-than-expected results for the second quarter of the financial year 2026. Brokerages have raised target prices for the stock, anticipating strong upside potential from the current levels.
The shares of the IT company were trading at Rs 1,866.60 apiece in the early trading hours of Monday. The stock is currently the top gainer of the Nifty IT index, which itself is up around half a percent. The company had released its results in the post market hours of October 24.
Coforge Q2 Results:
Coforge reported a consolidated net profit of Rs 376 crore for the July-September quarter of the financial year 2026. This marks a 77.5 percent year-on-year jump from the Rs 212 crore net profit reported in the same period of the previous financial year.
The firm’s revenue from operations meanwhile grew around 32 percent YoY to Rs 3,985.7 crore in Q2 FY26, from Rs 3,025.6 crore in Q2 FY25.
Along with the Q2 results, Coforge announced a second interim dividend of Rs 4 per equity share for the ongoing financial year 2026. The company has fixed October 31 as the record date to determine the eligibility of the shareholders set to receive the payment.
Morgan Stanley on Coforge:
Morgan Stanley held an ‘overweight’ call on the stock, while raising its target price to Rs 2,030 per share. This implies an upside potential of more than 15 percent from the stock’s previous closing price of Rs 1,760 per share. The international brokerage noted that Coforge delivered an all-round performance in Q2, allaying investor concerns.
The firm sees good visibility in the second half of the financial year in terms of both growth and margins. Beyond FY26, Coforge’s intent is to keep firing on revenue growth, Morgan Stanley added.
JPMorgan on Coforge:
JPMorgan also held an ‘overweight’ call on the stock, with a target price of Rs 2,500 per share. This implies an upside potential of more than 42 percent from the stock’s previous closing price. The international brokerage said that the company needed to deliver on margins and cash flows after facing challenges last time, and it did exactly that with margin at 14 percent beating the brokerage’s estimates by 50 basis points.
JPMorgan said that the firm’s 5.9 percent QoQ revenue growth in CC terms came broadly in-line with expectations. It however noted that the deal TCV continued to remain below the $500 million-mark for the fifth consecutive quarter.
The international brokerage noted that the management has highlighted that demand has improved somewhat, and expects H2 growth to be robust on the back of strong deal wins and pipeline. The firm’s management continues to target 14 percent EBIT margins for FY26.
Nuvama on Coforge:
Nuvama kept a ‘Buy’ call on Coforge, while raising the target price to Rs 2,250 per share. This implies an upside potential of nearly 28 percent from the stock’s previous closing price. The international brokerage said that the firm has yet again delivered a robust performance in Q2.
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