Coforge shares climb 5%, still down 24% in six months; what lies ahead for the Noida-based IT stock?

Shares of Coforge Ltd settled 4.95 per cent higher at Rs 1,347, tracking a strong rebound in the Nifty IT index, which gained 2.43 per cent. Despite the sharp uptick, Coforge shares are still down 24.43 per cent over the past six months.

"Topline grew ~ 30 per cent YoY to Rs 4,450 crore in Q4 FY26, led by strong growth in Healthcare (+78.4 per cent YoY), Travel & Hospitality (+59.2 per cent YoY), Insurance (+14.5 per cent YoY), and Government performance (+31.3 per cent YoY). Broad-based geographic expansion reinforced its resilience and diversified growth momentum," Geojit stated.

"EBITDA grew ~56.2 per cent YoY to Rs 917 crore, while EBITDA margins expanded by 340bps YoY to 20.6 per cent in Q4 FY26, led by strong operational execution, cost efficiencies, and beneficial foreign exchange movement," the brokerage added.

"PAT grew ~134 per cent YoY to Rs 612 crore in Q4 FY26, led by one-time reversal of deferred tax liabilities associated with the Cigniti integration and robust operating performance. Deal momentum remained robust in FY26, with 21 large transactions closed. Q4 recorded a healthy order intake of $648 million, while the executable order book expanded to $1.75 billion, reflecting a 16.4 per cent YoY growth," it also said.

"As per market consensus, Coforge is trading at 1 yr fwd P/E of 23x (3 yr avg P/E of 34x), offering attractive valuation. Coupled with a strong executable order book, diversified vertical growth, and enhanced AI-led capabilities, the company is well-positioned to deliver sustained double-digit growth and margin expansion in FY27," Geojit further stated.

It has recommended a 'Buy' on the stock in the Rs 1,350–1,390 range, with a target price of Rs 1,670 over the next three to six months. The brokerage has suggested a stop loss at Rs 1,100 for the trade.

Separately, Axis Direct maintained a 'BUY' rating on the stock, assigning a target of Rs 1,690, citing the company's strong growth potential driven by robust deal wins and superior execution capabilities.

Coforge is a Noida-headquartered global IT services and digital transformation company. It offers solutions across digital engineering, cloud services, artificial intelligence (AI), data analytics and automation. The company caters to sectors, including banking, insurance, travel, healthcare and the public sector.