Coforge shares rally 5% on strong Q4 show, brokerages see 47% upside

Coforge's shares have tumbled 22 percent so far this year.

Information technology player Coforge Ltd.'s shares run up five percent during the opening deals on Tuesday, May 6, after the IT firm reported a solid beat in its quarterly report for the January-March 2025 period.

Coforge posted a consolidated profit after tax of Rs 261 crore for the fourth quarter of FY25, marking a 17 percent rise compared to Rs 223.7 crore in the same period last year. Revenue from operations also saw strong growth, climbing 47 percent year-on-year to Rs 3,409.9 crore, up from Rs 2,318.4 crore in the corresponding quarter of the previous fiscal.

The company reported an order intake of $2.1 billion in Q4 with five large deals, resulting in a robust 12-month executable order book of $1.5 billion. The firm's executable order book remains a reliable indicator of short-term revenue growth outlook; it is up 47 percent YoY in FY25.

At 9.20 am, shares of Coforge were quoting Rs 7,726.5 apiece on the BSE, higher by three percent after trimming some intraday gains.

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Emkay Global upgraded Coforge to 'add' from 'reduce' with unchanged target price of Rs 8,200, given recent stock price correction (~22 percent CY25 TD), continued strong revenue growth momentum supported by robust deal intake and pipeline, and strong execution. Coforge reported steady operating performance in Q4, a tad better than expectations.

The underlying business momentum is healthy, driven by consistent deal wins and resilient client

spending across key verticals. Management also expects organic growth in FY26 to exceed FY25 (~15 percent cc YoY), reflecting continued confidence in the core business.

"Taken together, we believe revenue visibility over the next 12 months remains high," said Motilal Oswal, maintaining its buy rating, with a target price of Rs 11,000 per share, indicating an upside of 47 percent.

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