Coforge , a leading global IT solutions organization, has outlined its financial projections for the upcoming fiscal year and reported strong September quarter results, driving a 4% increase in its stock price.

Financial Projections and Performance

Coforge has set a target of 14.00% EBIT (Earnings Before Interest and Taxes) margin for the fiscal year 2026 (FY26), indicating a stable profitability outlook. The company plans to maintain this rate moving forward, providing investors and analysts with a clear benchmark for assessing future financial performance.

In the September quarter, Coforge demonstrated robust growth:

• Revenue increased by 4.5% sequentially to $462.1 million, outpacing tier I peers who recorded below 3% growth.
• Net profit grew 18.4% to Rs375.8 crore.
• Operating margin expanded 260 basis points to 14%.
• New deals worth $514 million were secured, marking the fifth consecutive quarter with total contract value above $500 million.
• The 12-month executable order book reached a record high of $1,635 million.

Seasonal Patterns and Growth Expectations

The company has provided guidance on its expected business patterns:

Coforge's management expects particularly robust growth in the second half of FY26, with the fourth quarter projected to be especially strong.

Cash Flow and Tax Rate Projections

Coforge has also shared projections for two key financial metrics:

Operational Highlights

• The $1.6 billion deal with Sabre Corporation signed in March began contributing to revenue.
• Headcount increased to 34,896 with attrition remaining low at 11.4%.

Market Response

Following the strong quarterly results and positive outlook:

• Coforge's stock rose 4%, closing at Rs1,830.3 on Monday.
• Analysts raised 12-month price targets by an average of 7%.
• IDBI Capital set a target of Rs2,030, while Elara Capital projected Rs2,010.

The company's forward-looking statements and strong quarterly performance provide a comprehensive view of its financial strategy and operational expectations. However, investors should note that these projections are based on current expectations and may be subject to change depending on various internal and external factors affecting the business environment.

Coforge Limited , a global digital services and solutions provider, has announced strong financial results for the second quarter, showcasing significant growth across key metrics.

Financial Highlights

Coforge delivered a robust performance in the second quarter, with consolidated net profit rising to ₹376.00 crore from ₹317.00 crore in the previous quarter, marking an impressive growth of 18.6% quarter-on-quarter. This result nearly matched analyst estimates of ₹377.00 crore.

Revenue Growth and Operational Performance

The company's revenue grew to ₹3,985.00 crore from ₹3,690.00 crore in the previous quarter, representing a solid 8.05% increase. This growth in revenue underscores Coforge's ability to expand its business and capture market opportunities.

Coforge's operational efficiency was evident in its EBIT (Earnings Before Interest and Taxes) performance. The EBIT increased significantly to ₹560.00 crore from ₹417.00 crore in the previous quarter, though it fell slightly short of the estimated ₹575.00 crore.

Margin Expansion

One of the standout aspects of Coforge's Q2 results was the substantial expansion in its EBITDA margin. The margin grew to 14.07% from 11.33% quarter-on-quarter, aligning closely with the 14% estimate. This 274 basis points improvement in EBITDA margin reflects the company's focus on operational efficiency and cost management.

Year-over-Year Performance

When compared to the same quarter of the previous year, Coforge's performance shows even more impressive growth:

The year-over-year comparison highlights Coforge's strong growth trajectory, with net profit nearly doubling and revenue increasing by over 30%.

Outlook

The strong Q2 performance positions Coforge well for continued growth. The significant improvements in profitability and operational efficiency suggest that the company's strategic initiatives are yielding positive results.

Investors and analysts will likely keep a close eye on Coforge's ability to maintain this growth momentum and further expand its margins in the coming quarters, especially given the dynamic nature of the global IT services market.