Indian equity markets opened nearly flat on Tuesday, January 27, amid mixed cues from Asian markets. Investor sentiment remained cautious ahead of a formal announcement on the India–EU trade agreement, following fresh tariff-related remarks by US President Donald Trump, and due to the weekly Nifty expiry.
Against this backdrop, brokerage firms have maintained a favourable view on Coforge Ltd, citing the company’s recent quarterly performance, order book visibility, and business diversification. Brokerages stated that these factors differentiate Coforge from other information technology sector peers.
Brokerage reports noted that the company’s growth trajectory during the first nine months of FY26 has supported expectations of continued revenue expansion. The company has been diversifying its business mix and expanding its client base, according to the reports.
Brokerages added that the strength of the order book indicates limited pressure on revenue in the coming quarters. Several brokerage firms have accordingly reiterated a BUY rating on the stock.
Nuvama Equities has maintained its BUY rating on Coforge and raised its target price to Rs 2,500 from Rs 2,250. Coforge shares closed at Rs 1,636 on Friday, implying an upside of about 53% from the closing level, as per the brokerage.
Nuvama stated that the company is focused on building a sustainable business model alongside revenue growth, supported by improvements in cash flow and diversification of the revenue base.
Motilal Oswal has also reiterated a BUY rating on Coforge with a target price of Rs 2,500. The brokerage stated that Coforge is expected to remain the fastest-growing company within its coverage universe and reiterated the stock as its top pick.
According to Motilal Oswal, estimates remain largely unchanged, except for FY27. The brokerage expects the acquisition of Cigniti to support earnings per share.
Other brokerage firms have also maintained positive ratings on Coforge. Antique Stock Broking has issued a BUY recommendation with a target price of Rs 2,100, while Choice Equities has set a target price of Rs 1,900.
For the third quarter of FY26, covering the October–December period, Coforge reported a net profit of Rs 250.2 crore, representing a year-on-year increase of 17.6%. On a quarter-on-quarter basis, net profit declined by 33.4%.
The company attributed the sequential decline in profit to a one-time expense of Rs 117.9 crore related to the new labour code, acquisition-related legal costs, and additional cybersecurity expenses of approximately Rs 16.2 crore.
Revenue for the quarter rose 28.5% year-on-year to Rs 4,188.1 crore.
In December 2025, Coforge announced the acquisition of US-based AI-driven engineering company Encora in an all-cash transaction valued at approximately $2.35 billion. The company estimates integration costs in the range of $10 million to $15 million.
