Coforge Shares Soar 11.1% as FY27 EBITDA Forecast Tops 20.5%
Coforge's stock jumped as much as 11.1%, set for its best session in over a year, trading 9.1% higher by mid-morning. The company forecast over 20.5% consolidated EBITDA growth for FY27 and reported a 230-basis-point sequential EBIT margin increase to 16.6% after quarterly profit more than doubled.
1. Stock Price Surge
Coforge shares climbed as much as 11.1% on May 6, marking the biggest single-day gain in over a year. By 11:15 a.m. IST, the stock was trading 9.1% higher, outperforming the broader Nifty IT index.
2. Robust Earnings Outlook
The firm projected consolidated EBITDA growth exceeding 20.5% for FY27, a sharp contrast to subdued forecasts from larger peers. This outlook follows a March-quarter profit that more than doubled year-on-year.
3. Margin Improvement Drivers
EBIT margin rose to 16.6%, up 230 basis points sequentially, driven by lower costs, operating leverage and portfolio clean-up. Increased use of AI across delivery and operations also supported the efficiency gains.
4. Analyst Upgrades and Valuation
Jefferies lifted its target price to 1,860 rupees and reiterated a buy rating, while Prabhudas Lilladher raised its target to 2,020 rupees. Twenty-two of 30 brokerages now rate the stock as buy or higher, with a median target of 1,870 rupees.