The Coforge share price has seen a sharp jump in the past two sessions. This is after the company’s June quarter performance reinforced Street confidence in the IT services company, with leading brokerages maintaining their positive stance after the company delivered better-than-expected revenue growth, margins and order wins.
Analysts said strong execution, a healthy executable order book and early benefits from the Encora acquisition have strengthened the company’s growth visibility, prompting earnings upgrades and higher target prices.
Coforge June quarter earnings
For the quarter ended June 2026, Coforge reported 22.3% quarter-on-quarter constant currency revenue growth, supported by two months of Encora consolidation. Organic constant currency growth stood at 1.1% quarter-on-quarter, while the company closed the quarter with an executable order book of more than $2.2 billion. Margins also exceeded expectations despite acquisition-related costs, encouraging brokerages to remain constructive on the stock.
Jefferies on Coforge: ‘Buy’
Jefferies maintained its ‘Buy’ rating and raised its target price to Rs 2,040 from Rs 1,860, implying an upside of around 21%.
The brokerage said Coforge delivered a clear earnings beat, with stronger-than-expected organic growth and margins. While reported organic growth was 1.1% quarter-on-quarter, Jefferies noted that underlying growth rose to 5.2% after adjusting for the exit of the low-margin India government business and the data centre divestment. It added that Encora made a stronger-than-expected contribution during the quarter, particularly across healthcare, hi-tech and AI-led engineering services.
Jefferies believes the company’s growth trajectory remains intact, backed by robust deal momentum and a rising order pipeline.
“Strong deal wins and 45% YoY growth in executable order book provide visibility for mid-teens organic growth over FY27-29.”
The brokerage highlighted that fresh organic order bookings reached $691 million, while the 12-month executable order book expanded to $2.2 billion. It also pointed to the ramp-up of a recently won $230 million contract, which was not included in the June quarter bookings, and cross-selling opportunities with Encora customers as additional growth drivers.
On margins, Jefferies said Encora’s profitability exceeded expectations and integration synergies were progressing faster than anticipated.
“Management highlighted that cost synergy from Encora acquisition is tracking ahead of their plans.”
Factoring in the stronger quarter, the brokerage raised its earnings estimates by 3-5% and expects Coforge to deliver 23% recurring EPS CAGR over FY27-FY29.
Nomura on Coforge: ‘Buy’
Nomura retained its ‘Buy’ rating and increased its target price to Rs 1,860 from Rs 1,740, implying an upside of 21.7%.
According to the brokerage, Coforge reported a strong all-round quarter, with revenue growth, profitability and cash generation exceeding expectations.
Organic constant currency growth came in at 1.1% quarter-on-quarter, while growth excluding the exited India government and data centre businesses stood at 5.1%. Organic EBIT margin improved to 16.7%, ahead of Nomura’s estimates.
Nomura believes the company’s order pipeline provides confidence that growth will remain healthy through the rest of the financial year.
“Strong, executable order book gives comfort on revenue growth outlook.”
The brokerage noted that Coforge reported $691 million in deal wins during the quarter and ended the period with an executable order book of $2.22 billion, up 45% year-on-year. It added that these numbers do not include framework agreements from the UK public services business, which could provide additional revenue over time. Nomura expects the company to deliver nearly 4% quarter-on-quarter growth over the remaining three quarters of FY27 and has raised its FY27 organic growth estimate to around 13%.
The brokerage also sees further room for profitability to improve.
“We see potential upside to Coforge’s guidance of 15.5% (total) margin for FY27E given that there is still scope of synergy extraction in the Encora entity and leverage coming from revenue growth.”
Nomura raised its FY27-FY28 EPS estimates by 1-7%, citing stronger growth and better margin assumptions, while continuing to identify Coforge as its preferred mid-cap IT stock.
Nuvama on Coforge: ‘Buy’
Nuvama reiterated its ‘Buy’ rating and increased its target price to Rs 2,350 from Rs 2,200, the highest among the brokerages reviewed.
The brokerage said Coforge delivered a broad-based earnings beat, supported by healthy deal wins, improving margins and strong free cash flow.
“Coforge delivered an all-round beat to estimates with a strong deal pipeline and scope for further margin expansion.”
Nuvama highlighted that the company recorded $691 million in order intake during the quarter, while the 12-month executable order book rose 44.2% year-on-year to $2.3 billion. It also noted that the recently announced $230 million deal will be booked in the September quarter, with management expecting an even stronger deal flow in the coming months.
The brokerage said Encora integration continued to improve profitability through lower SG&A costs and operating efficiencies, while cash generation also remained healthy.
“Strong earnings growth ahead; attractive valuations.”
Nuvama upgraded its FY27 and FY28 EPS estimates by 4.7% and 3.4%, respectively, on the back of stronger margins. It said the company’s focus on earnings, cash generation and execution keeps it among its preferred ideas within the IT services sector.
Conclusion
Across the three brokerage reports, analysts see Coforge entering FY27 with one of the strongest growth pipelines in the sector, supported by a large executable order book, sustained deal momentum, improving margins and continued integration benefits from Encora.
Disclaimer: Investment decisions should not be based solely on third-party brokerage recommendations, ratings, or target prices featured in this report. The projections and analyst commentary cited do not constitute an offer, solicitation, or personal recommendation to buy, sell, or hold any security. Equity investments carry market risks, and past performance or order book expansion does not guarantee future financial returns. Readers are advised to evaluate their risk profile and consult a SEBI-registered financial advisor before making any investment decisions.
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