Analysts update ratings on Coforge following strong Q4 results 

The shares of Coforge Limited were trading at ₹7,624.50 up by ₹128 or 1.71 per cent on the NSE at 11 am.

Investment firms have updated their ratings on Coforge after the company’s strong Q4 financial performance announced yesterday. Jefferies maintained its “Buy” recommendation on the IT solutions provider while raising its target price significantly to ₹9,000 from the previous ₹7,860. The firm cited Coforge’s constant currency revenue growth of 3.4 per cent quarter-on-quarter as a key positive surprise and believes strong growth is likely to sustain.

Jefferies maintained its FY26-27 estimates for Coforge and expects a 23 per cent EPS CAGR over FY26-28. The firm noted that consistent execution and a strong growth outlook should support the company’s valuations.

Meanwhile, HSBC took a more conservative approach, maintaining a “Hold” rating on Coforge while actually reducing its target price to ₹8,035 from ₹8,765 previously.

These rating updates follow Coforge’s announcement of exceptional FY25 results yesterday. The company announced exceptional financial results for FY25, with annual revenue growing 32.0 per cent year-over-year in constant currency terms to reach $1.45 billion. The IT solutions provider reported particularly strong performance in Q4, with revenue increasing 3.4 per cent quarter-on-quarter and 43.8 per cent year-over-year in constant currency.

The company secured a record $1.56 billion total contract value deal during Q4, alongside four other large deals across North America, UK and APAC regions. This contributed to an order executable book worth $1.5 billion for the next twelve months, representing a 47.7 per cent increase compared to the previous year.

EBITDA for Q4 stood at $68 million, growing 12.2 per cent quarter-on-quarter and 32.7 per cent year-over-year, with margins improving to 16.9 per cent. The board has recommended an interim dividend of ₹19 per share, with May 12, 2025, set as the record date.

“FY25 was an exceptional year driven by 14 large deals and broad-based growth in all our verticals and geo-based businesses,” said Sudhir Singh, CEO and Executive Director. “The growing large deals pipeline positions us well for strong growth in FY26.”

The company maintained a low attrition rate of 10.9 per cent while expanding its workforce to 33,497 employees, a 35.5 per cent increase since the beginning of the fiscal year. Coforge also launched a GenAI Center of Excellence in collaboration with ServiceNow focused on developing AI solutions for financial services and travel industries.

Published on May 6, 2025