Coforge shares witnessed a sharp rally on Wednesday, surging over 10% in early trade after the IT services company reported a massive jump in its fourth-quarter net profit. The stock opened at Rs 5,200 on the BSE and quickly climbed to an intraday high of Rs 5,380, up 10.5% from the previous close.
Strong Q4 performance
The Noida-based IT firm posted a consolidated net profit of Rs 612 crore for the quarter ended March 2026, a significant increase compared to Rs 45 crore in the same quarter last year. The company's revenue from operations also rose sharply by 18% year-on-year to Rs 2,800 crore, driven by robust demand across its key verticals.
Key financial highlights
- Net profit: Rs 612 crore vs Rs 45 crore (YoY)
- Revenue: Rs 2,800 crore, up 18% YoY
- EBITDA margin: Improved to 22.5% from 18.2%
Factors behind the growth
The company attributed the strong performance to higher deal wins, especially in the banking, financial services, and insurance (BFSI) vertical. Additionally, operational efficiencies and cost optimization measures contributed to margin expansion. Coforge also reported a strong order book of Rs 4,500 crore, providing visibility for future growth.
Management commentary
Commenting on the results, Coforge CEO Sudhir Singh said, "We are delighted with the quarter's performance, which reflects our focused execution and client-centric approach. The strong deal wins and pipeline give us confidence in sustaining this momentum."
Market reaction
Analysts have maintained a positive outlook on the stock, citing the company's strong fundamentals and growth trajectory. Several brokerages have revised their target prices upward post the results. At 10:30 am, the stock was trading at Rs 5,340, up 9.8% on the BSE.
The broader IT sector also witnessed buying interest, with the Nifty IT index gaining 1.5% in early trade.
