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Coforge delivered a robust Q2FY26 performance, prompting Emkay Global Financial Services to raise its share price target to Rs 1,850 from Rs 1,750 while maintaining an ‘ADD’ recommendation. The stock closed at Rs 1,760 on October 25, 2025, implying a potential upside of 5%, as per Emkay’s report.Revenue grew 4.5% sequentially to $462.1 million (5.9% in constant currency), ahead of expectations, while EBIT margins surged by 240 basis points to 14%. Reported net profit jumped 18.4% quarter-on-quarter to ₹3.8 billion, aided by higher other income.“We retain ADD on the stock while revising our target price up by ~6% to ₹1,850 at 32x Sep-27E EPS,” said analysts Dipeshkumar Mehta, Jimit Gandhi, and Shivang Bagla of Emkay Global.Broad-Based Growth and Deal Wins Boost OutlookCoforge’s revenue expansion was broad-based across verticals, Travel, Transport & Hospitality (6.4%), BFSI (4%), and Healthcare & Hi-Tech (5.9%). The company signed five large deals worth $514 million in total contract value, lifting its next-12-month executable order book to $1.63 billion, a 27% year-on-year increase.The management remains optimistic about H2FY26 outperforming H1, citing healthy deal momentum and a strong order pipeline. The company targets maintaining EBIT margins at or above 14% and expects free cash flow to PAT conversion of 75–80%.AI-Led Transformation Strengthens Competitive EdgeCoforge continues to leverage AI-driven productivity and automation, with annualised revenue per employee up 17% year-on-year to $70,000.The company has embedded multiple proprietary AI platforms, including CodeInsightAI, BlueSwan, Forge-X, and Quasar AI, which are enabling clients to shift from pilot to enterprise-scale AI adoption.According to management, AI will remain a key revenue driver as the company transitions towards platform-led digital transformation. Healthcare, for instance, is expected to reach a $100 million business size by the year-end, driven by AI-based automation and patient data platforms.Outlook: Solid Pipeline and Margin Stability AheadDespite macroeconomic uncertainties, demand remained resilient across banking, insurance, and travel, aided by real-time transaction adoption and regulatory shifts. The ‘Government outside India’ vertical has surpassed $150 million in quarterly revenue and is projected to move towards a $200 million run-rate soon.Read More - 16 Stocks To Trade Ex-Divididend Next Week - Check Full ListEmkay Global forecasts Coforge’s revenue to rise 33.6% in FY26 to ₹1.61 lakh crore, while earnings per share (EPS) are expected to grow 80.6% to ₹43.9.The brokerage values Coforge at 32x FY27 earnings, reflecting confidence in its sustained execution and margin discipline.Disclaimer: The views expressed in this article are purely informational, and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks, and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds.
