Coforge is expanding its automotive engineering footprint to approximately 300 professionals, focusing on connected, electric, and software-defined vehicles.

Strategic focus on automotive engineering

Coforge is deepening its capabilities in the automotive engineering segment under the new Telecom, Media, Automotive, and Energy Solutions (TMAE) industry vertical. The company's expansion targets key areas reshaping the global mobility landscape: connected vehicles, electric vehicles (EVs), and software-defined vehicles (SDVs).

The automotive engineering practice now comprises approximately 300 professionals across Argentina, Brazil, Colombia, India, Europe, and the United States, with plans for further expansion. This footprint brings together engineering capabilities in mobility software, connectivity, cloud, cybersecurity, vehicle systems, and AI.

Key areas of focus

The following areas form the foundation of Coforge's expanded automotive engineering initiative:

• Connected vehicles: Engineering solutions aimed at enhancing vehicle connectivity, V2X features, and data-driven capabilities
• Electric vehicles: Technology and engineering support for the growing electric mobility ecosystem, including EV fleet management
• Software-defined vehicles: Development of software-centric architectures that underpin next-generation vehicle platforms

Capabilities and AI integration

Coforge’s offerings span the vehicle lifecycle, from concept and architecture through software development, integration, simulation, validation, and deployment. The company applies AI across the engineering lifecycle to improve efficiency and accelerate software development.

Key capabilities include:

• Vehicle software development and system architecture
• Simulation, validation, and OTA management
• Vehicle cybersecurity and authentication
• AI-enabled engineering for predictive maintenance and intelligent inspection
• Physical AI applications in automotive manufacturing

What the Numbers Show

The expansion of the practice to 300 professionals across six geographies signals a significant scaling of resources dedicated to the TMAE vertical. By integrating AI-native engineering with hyperspecialized industry expertise, Coforge is positioning itself to address the increasing convergence of software and physical systems in next-generation vehicle platforms.

Coforge has reaffirmed its financial guidance for FY27, signaling confidence in sustained earnings and cash-flow generation despite recent board-level changes.

The IT services company confirmed that its operations and financial outlook remain unaffected by the quick backfilling of two independent director vacancies and the appointment of a permanent chairperson. Management assured stakeholders that these governance enhancements would not disrupt ongoing business activities or strategic execution.

Financial Guidance and Brokerage View

Nomura maintained a Buy rating on Coforge, setting a target price of ₹1,860. The brokerage highlighted that the swift resolution of board vacancies strengthens corporate governance without impacting operational metrics.

Key elements of the retained FY27 guidance include:

• EBIT Margin: Expected to exceed 15.5%
• Free Cash Flow Conversion: Targeted at greater than 100% of PAT
• Valuation: Stock trades at 24.9x FY28F EPS of ₹74.1

What the Numbers Show

The commitment to a free cash flow (FCF) conversion ratio exceeding 100% of profit after tax (PAT) indicates a strong focus on cash efficiency. This metric suggests that for every rupee of net profit reported, the company aims to generate more than one rupee in free cash flow, reflecting disciplined working capital management and capital expenditure controls typical of mature IT services firms.

Governance Updates

The appointment of a permanent chairperson and the filling of independent director roles address previous regulatory requirements. Nomura noted that these steps are critical for maintaining investor confidence and ensuring robust oversight, particularly as the company navigates its growth trajectory in the competitive IT landscape.