Coforge shares gain ahead of Q2 results; earnings preview by stock analysts

Shares of Coforge Ltd were trading marginally higher in Friday's trade ahead of its September quarter results. A host of brokerages expects the IT firm to report over 60 per cent surge in September quarter profits on 30 per cent growth in sales. Margin is seen expanding 50-60 basis points YoY. Any update on large deal pipeline and demand environment will be keenly watched, analysts said.

Centrum Broking expects Coforge to report 65.5 per cent YoY rise in profit at Rs 334.70 crore compared with Rs 202.20 crore in the same quarter last year. Sales are seen at Rs 3,999 crore, up 30.6 per cent YoY.

"We expect cc revenue growth of 5.6 per cent QoQ, led by ramping of the Sabre deal and improving traction in BFS vertical We expect EBIT margin to improve by 52 bps QoQ led by positive operating leverage and rupee depreciation," Centrum said.

Coforge shares were trading 0.25 per cent higher at Rs 1,759.30 on BSE. The stock is down 8.55 per cent in 2025 so far against 18.31 per cent drop in the BSE IT index.

Coforge's Q2 margins may rise to 14 per cent, up 80 bps QoQ, as ESOP costs taper and D&A normalised, MOFSL said. This brokerage noted that the company management focuses on closing 20 large deals in FY26 against 14 in FY25. It is confident about the supporting pipeline.

"Demand in BFS remains healthy, while growth in TTH is driven by the Sabre deal ramp-up. We expect revenue to grow 6 per cent QoQ in CC terms, driven by strong organic momentum and steady ramp-up of the Sabre deal. We expect 80 bps expansion in reported EBIT margin," the brokerage said. This brokerage sees adjusted net profit to rise 63.5 per cent YoY to Rs 380 crore.

Nuvama sees profit at Rs 351 crore, sales at Rs 4,090 crore and dollar revenues at $470 million.

"We expect revenue growth of +6 per cent QoQ in CC/+6.1 per cent QoQ in dollar terms—strong growth on the back of Sabre deal ramp-up and other verticals. We reckon margin shall expand by 40 bps QoQ driven by lower ESOP expense and operating leverage. Deal-wins are likely to stay strong again," it said.