Synopsis:
The IT firm posted strong Q2 results with 32% revenue and 82% profit growth, supported by margin expansion and robust deal wins. A major brokerage maintained a bullish view, projecting up to 36% upside amid improving demand, steady margins, and strong execution momentum.
The shares of the digital service provider gained up to 6 percent in today’s trading session after the company’s net profit and revenue zoomed by 82 percent and 32 percent, respectively, in Q2FY26.
With a market capitalization of Rs 61,617.54 crore, the shares of Coforge Ltd were trading at Rs 1,842.00 per share, increasing around 4.62 percent as compared to the previous closing price of Rs 1,760.65 apiece.
Q2FY26 Highlights
The shares of Coforge Ltd have seen significant movement after announcing its financial performance in Q2FY26, in which revenue increased by 32 percent on a year-on-year basis from Rs 3,026 crore in Q2FY25 to Rs 3,986 crore in Q2FY26. However, on a Quarter-on-Quarter basis, revenue zoomed by 8 percent from Rs 3,689 crore in Q1FY26 to Rs 3,986 crore in Q2FY26.
Moreover, net profit increased by 82 percent on a yearly basis from Rs 234 crore in Q2FY25 to Rs 425 crore in Q2FY26, meanwhile, on a quarter-on-quarter basis, net profit jumped by 19 percent from Rs 356 crore in Q1FY26 to Rs 425 crore in Q2FY26.
Along with the Q2 results, Coforge announced a second interim dividend of Rs 4 per equity share for the ongoing financial year 2026 and has fixed October 31 as the record date to determine the eligibility of the shareholders set to receive the payment.
Operational Highlights
The company reported strong quarterly performance with an order intake of $514 million and an executable order book of $1.63 billion, up 26.7% YoY. It secured five large deals across North America and APAC, added 709 employees, and maintained low attrition at 11.4%.
On the partnership front, it was recognized by Salesforce as the “Market Expansion Partner of the Year” for 2025 and formed strategic alliances with Workato and SnapLogic to enhance its integration and API management capabilities, strengthening its digital transformation portfolio.
Guidance & Brokerage recommendations
Additionally, Coforge’s revenue growth was in line with expectations, while margin expansion exceeded estimates. Management remains optimistic, expecting robust growth in the second half, with Q4 likely to be the strongest quarter seasonally.
JPMorgan, one of the well-known brokerages globally, maintained an ‘Overweight’ rating on this IT stock with a target price of Rs 2,500 apiece, indicating a potential upside of 36 percent from Monday’s price of Rs 1,838.25 per share.
JPMorgan stated that the company successfully delivered on its margin and cash flow goals, posting a 14% margin that exceeded estimates by 50 basis points. Revenue rose 5.9% QoQ in constant currency, aligning with expectations, though deal TCV stayed below $500 million for the fifth straight quarter.
The brokerage noted management’s optimism about improving demand and expects strong growth in H2 driven by solid deal wins and a healthy pipeline. The company remains focused on sustaining 14% EBIT margins for FY26, reflecting disciplined execution and improving business momentum despite earlier challenges.
Coforge is an IT services company providing end-to-end software solutions and services. It is among the top 20 Indian software exporters. Prominent global customers include British Airways, the ING group, SEI Investments, Saber, and SITA. Over the years, Coforge has set up subsidiaries in the US, Singapore, Australia, the UK, Germany, and Thailand, mainly to market and mobilize projects for the software division.
Written by Abhishek Singh
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