Synopsis:- The shares of the company slid 7% after announcing a board meeting to consider fresh fundraising, sparking dilution worries. Despite strong Q2 growth with 32% revenue and 82% profit rise, investors remain cautious given limited cash, a $2 billion revenue target, and free cash flow concerns.
The shares of the IT solution provider plummeted up to 7 percent in today’s trading session after the company announced a board meeting to consider another fund raise, raising dilution concerns.
With a market capitalization of Rs 59,675.23 crore, the shares of Coforge Ltd were trading at Rs 1,781.90 per share, decreasing around 4.62 percent as compared to the previous closing price of Rs 1,868.15 apiece.
Fundraising Concern
The shares of Coforge Ltd have seen bearish movement after the board scheduled a meeting this Friday to consider another fund raise, raising dilution concerns. With limited cash, a $2 billion revenue ambition, and weak cash conversion versus peers, investors worry that funding may signal acquisition plans and pressure free cash flow guidance despite strong stock gains post split.
Q2FY26 Highlights
The company’s financial performance has shown significant growth in Q2FY26, in which revenue rose 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 magnified significantly 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.
Operational Highlights
The company delivered a robust quarter, reporting order intake of $514 million and an executable order book of $1.63 billion, up 26.7% year-on-year. It won five large deals across North America and APAC, expanded its workforce by 709 employees, and kept attrition at a healthy 11.4%.
On the partnership side, the company was named Salesforce’s “Market Expansion Partner of the Year” for 2025 and entered strategic alliances with Workato and SnapLogic. These collaborations strengthen its integration and API management capabilities, further enhancing its end-to-end digital transformation offerings.
Brokerage recommendations
Recently, Motilal Oswal, one of the well-known brokerages in india, has given a ‘Buy’ recommendation on this IT stock with a target price of Rs 3,000 apiece, indicating a potential upside of 67 percent from the current price of Rs 1,786 per share.
Coforge is a mid-tier IT services company offering end-to-end digital, cloud, and software solutions to global clients. Ranked among India’s top 20 software exporters, it serves marquee customers such as British Airways and ING. Its international subsidiaries across the US, Europe, and Asia strengthen client engagement and support steady global project execution.
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