Coforge Limited (IN:COFORGE)
:COFORGE
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Coforge Limited
(COFORGE)
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Rating:73Outperform
Price Target:
₹1,692.00
▲(2.46% Upside)
Action:Upgraded
Date:05/09/26
The score is driven primarily by solid financial quality (notably low leverage and improved 2026 profitability/revenue momentum), partially offset by margin volatility and inconsistent cash-flow signals. Technicals are supportive but somewhat stretched and still below longer-term moving averages, while valuation is only average due to a mid-20s P/E and modest dividend yield.
Positive Factors
Conservative, improving leverage
Very low and falling debt-to-equity gives the company durable financial flexibility. With a strengthened equity base, Coforge can absorb demand shocks, fund investments or inorganic growth, and maintain service delivery without near-term refinancing risk—supporting stability over months.
Negative Factors
Sharp gross-margin decline
A sudden halving of gross margin signals meaningful cost pressures or adverse revenue mix changes that reduce earnings quality. If driven by structural pricing pressure, higher subcontracting, or unfavorable mix, this can compress sustainable operating profit and weaken long-term margin leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative, improving leverage
Very low and falling debt-to-equity gives the company durable financial flexibility. With a strengthened equity base, Coforge can absorb demand shocks, fund investments or inorganic growth, and maintain service delivery without near-term refinancing risk—supporting stability over months.
Read all positive factors
Coforge Limited (COFORGE) vs. iShares MSCI India ETF (INDA)
Market Cap
₹617.16B
Dividend Yield0.88%
Average Volume (3M)67.87K
Price to Earnings (P/E)31.0
Beta (1Y)1.32
Revenue Growth33.81%
EPS Growth89.36%
CountryIN
Employees13,297
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)34.91
Shares Outstanding429,999,940
10 Day Avg. Volume58,454
30 Day Avg. Volume67,870
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)3.92
Price to Sales (P/S)2.28
P/FCF Ratio38.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,860.00Price Target Upside12.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)57.36
Revenue Forecast (FY)₹225.44B
Coforge Limited Business Overview & Revenue Model
Company Description
Coforge Limited provides information technology (IT) and IT enabled services in India, the Americas, Europe, the Middle East and Africa, and the Asia Pacific. It offers digital process automation services, including workflow/process management, ar...
How the Company Makes Money
Coforge makes money primarily by delivering IT services to enterprise customers under commercial contracts that bill clients for (1) ongoing managed services and application/IT operations (recurring revenue), and (2) project-based work such as dig...
Coforge Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 144.02B | 164.03B | 120.51B | 90.09B | 80.15B | 64.32B |
| Gross Profit | 57.51B | 31.02B | 47.18B | 35.38B | 30.64B | 23.40B |
| EBITDA | 21.83B | 30.46B | 15.23B | 13.20B | 11.91B | 10.40B |
| Net Income | 11.70B | 15.56B | 8.12B | 8.08B | 6.94B | 6.62B |
Balance Sheet | ||||||
| Total Assets | 135.90B | 148.81B | 124.91B | 61.08B | 56.83B | 49.54B |
| Cash, Cash Equivalents and Short-Term Investments | 5.71B | 10.99B | 10.29B | 3.35B | 5.76B | 4.54B |
| Total Debt | 9.71B | 7.28B | 10.70B | 7.26B | 5.62B | 4.90B |
| Total Liabilities | 46.68B | 52.01B | 41.62B | 23.81B | 25.14B | 21.23B |
| Stockholders Equity | 68.95B | 95.38B | 63.79B | 36.27B | 30.82B | 27.33B |
Cash Flow | ||||||
| Free Cash Flow | 1.34B | 9.58B | 6.23B | 6.38B | 7.92B | 6.12B |
| Operating Cash Flow | 7.87B | 17.01B | 12.37B | 9.03B | 9.51B | 7.66B |
| Investing Cash Flow | -5.53B | -4.72B | -24.48B | -2.48B | -2.72B | -9.56B |
| Financing Cash Flow | -5.04B | -9.65B | 16.75B | -8.87B | -5.58B | -1.56B |
Coforge Limited Technical Analysis
Positive
1651.40
Price Trends
1281.23
Positive
1357.29
Positive
1553.75
Negative
Market Momentum
49.31
Negative
58.14
Neutral
32.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:COFORGE, the sentiment is Positive. The current price of 1651.4 is above the 20-day moving average (MA) of 1387.31, above the 50-day MA of 1281.23, and above the 200-day MA of 1553.75, indicating a neutral trend. The MACD of 49.31 indicates Negative momentum. The RSI at 58.14 is Neutral, neither overbought nor oversold. The STOCH value of 32.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:COFORGE.
Coforge Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹617.16B | 30.99 | ― | 0.88% | 33.81% | 89.36% | |
69 Neutral | ₹341.01B | 26.62 | ― | 1.19% | 8.97% | 0.85% | |
69 Neutral | ₹795.37B | 42.26 | ― | 0.55% | 23.53% | 31.95% | |
68 Neutral | ₹213.02B | 33.22 | ― | 0.69% | 10.49% | -24.27% | |
67 Neutral | ₹1.19T | 23.79 | ― | 1.08% | 11.31% | 9.00% | |
63 Neutral | ₹444.58B | 23.85 | ― | 1.94% | 11.59% | 8.85% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
IN:COFORGE
Coforge Limited
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-19.42%
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Coforge Limited Corporate Events
Coforge posts Q4 FY26 earnings call transcript for investors
May 12, 2026
Coforge Limited has notified the stock exchanges that the transcript of its earnings conference call for the fourth quarter of FY26, held after the board meeting on May 5, 2026, has been made available to investors. The document, accessible via th...
Coforge Clears FY26 Results With Clean Audit, Sets Record Date for Cigniti Share Swap
May 5, 2026
Coforge Limited’s board has approved the audited standalone and consolidated financial results for the quarter and full year ended March 31, 2026, along with the statutory auditors’ report. The audit, conducted by S R Batliboi Associa...
Coforge–Cigniti Amalgamation Becomes Effective as NCLT Order Filed
May 4, 2026
Coforge Limited has announced that its court-approved Scheme of Amalgamation with Cigniti Technologies Limited has become effective following the filing of the National Company Law Tribunal’s order with the Registrar of Companies in Haryana....
Coforge closes Cigniti merger, boosts AI-led services scale and margins
Apr 30, 2026
Coforge Limited has received National Company Law Tribunal approval for the amalgamation of Cigniti Technologies into the company, formally closing the acquisition after meeting all regulatory requirements. The transaction strengthens Coforge̵...
Coforge Secures Funding and Completes Encora Acquisition via Large Share Allotment
Apr 23, 2026
Coforge’s board has approved key steps to complete and fund its acquisition of Encora US Holdco, Inc. and Encora Holdings Limited, including a second amendment to the share subscription and purchase agreement to clarify the timing and struct...
Coforge Secures USD 550 Million Funding, Issues New Equity to Complete Encora Deal
Apr 23, 2026
Coforge’s board has approved key steps to finance and consummate its acquisition of Encora US Holdco, Inc. and Encora Holdings Limited, including a second amendment to the share subscription and purchase agreement, a loan facility of up to U...
Coforge Closes Encora Deal With ₹17,000-Crore Share Swap and $550 Million Debt Plan
Apr 23, 2026
Coforge has completed the equity component of its Encora acquisition, issuing 93,796,508 equity shares on a preferential basis via a share-swap to Encora Holdco Limited and AI Altius Parent (Cayman) Limited, raising non-cash consideration of about...
Coforge Secures Funding and Completes Preferential Issue to Close Encora Acquisition
Apr 23, 2026
Coforge’s board has approved a second amendment to its share subscription and purchase agreement related to the Encora US Holdco and Encora Holdings acquisition, clarifying the timing and structure of funding to these entities. In line with ...
Coforge Closes Encora Acquisition, Raises USD 550 Million Debt and Issues ₹17,032 Crore in Equity
Apr 23, 2026
Coforge has completed the acquisition of Encora US Holdco Inc. and Encora Holdings Limited, following shareholder approval of a large share-swap based preferential issue worth over ₹17,032 crore to Encora Holdco Limited and AI Altius Parent ...
Coforge Secures $550 Million Facility and Completes Encora Share-Swap Deal
Apr 23, 2026
Coforge’s board has approved a series of financing and equity actions tied to its acquisition of U.S.-based Encora US Holdco, Inc. and Encora Holdings Limited, reinforcing its strategic expansion in digital engineering services. The company ...
Coforge Secures USD 550 Million Facility and Completes Encora Share-Swap Acquisition
Apr 23, 2026
Coforge’s board has approved a facilities agreement to raise up to USD 550 million in secured loans, backed by charges over certain present and future company assets, to fund the Encora US Holdco and Encora Holdings acquisition structure and...
Coforge Closes Encora Deal, Secures $550 Million Loan and Targets Synergistic AI-Led Growth
Apr 23, 2026
Coforge has completed its acquisition of Encora, allotting shares to Encora’s sellers and moving quickly to integrate operations and leadership across the combined group. Encora’s financials will be consolidated from May 1, 2026, with ...
Coforge Sees Senior M&A and Investor Relations Leaders Step Down After Major Expansion Drive
Apr 18, 2026
Coforge Limited has announced the resignation of Anup Kumar, Executive Vice President and Global Head of MA, and Manish Hemrajani, Head of Investor Relations, both effective at the close of business on April 17, 2026 in the U.S. The management cha...
Coforge Allots 39,681 Equity Shares Under ESOP, Boosting Paid-Up Capital
Apr 16, 2026
Coforge Limited has allotted 39,681 equity shares under its 2005 Employee Stock Option Plan following approval by its ESOP Allotment Committee on April 15, 2026. This issuance increases the company’s paid-up share capital to 33,58,50,618 equ...
Coforge Clears All Regulatory Hurdles for Encora Deal, Setting Stage for $2.5 Billion AI Services Powerhouse
Apr 13, 2026
Coforge has secured all required statutory and regulatory approvals across multiple jurisdictions for its acquisition of Encora, clearing the way to close the transaction and create a combined AI-native technology services firm with a run-rate rev...
Coforge Unveils Subscription-Based AI Mod Squads for Outcome-Driven Delivery
Apr 8, 2026
Coforge has launched AI Mod Squads, a subscription-based delivery model that combines pre-built AI agents with senior AI engineers to deliver outcome-based services rather than traditional time-and-materials contracts. Clients can assemble custom ...
Coforge Secures Key RBI Clearance for Over $1 Billion Encora Acquisition
Mar 31, 2026
Coforge has disclosed that it has received Reserve Bank of India approval for overseas direct investment exceeding USD 1 billion, a key regulatory clearance for its planned acquisition of Encora. The company had earlier secured antitrust clearance...
Coforge Nears Key Milestone as NCLT Reserves Order on Cigniti Amalgamation
Mar 27, 2026
Coforge Limited has announced that the National Company Law Tribunal has reserved its order for formal pronouncement on the proposed amalgamation of Cigniti Technologies Limited into Coforge. The move follows a series of prior disclosures and indi...
Coforge Sets Board Meet, Closes Trading Window Ahead of FY26 Results
Mar 27, 2026
Coforge Limited has announced the closure of its trading window for designated persons and their immediate relatives from April 1, 2026, in line with SEBI’s insider trading regulations, ahead of the approval of its financial results for the ...
Coforge adds AI and digital veteran Vivek Sharma as independent director
Mar 27, 2026
Coforge Limited has strengthened its board by appointing technology and AI specialist Vivek Sharma as an Additional Director in the capacity of Non-Executive Independent Director for a five-year term starting April 1, 2026, subject to shareholder ...
Coforge Publishes Notice on New Share Registrar, IEPF Transfers and Physical Share Window
Mar 21, 2026
Coforge Limited has announced that it has published a notice in leading English and Hindi newspapers regarding several shareholder-related matters, including a change in its Registrar and Transfer Agent, the transfer of certain equity shares to th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.