Coforge Q4 Review: UBS, Citi, Jefferies Split On Growth Outlook, Upto 60% Upside Seen — Check New Targets

Coforge Ltd. is in focus, after a phenomenal bottom-line was reported for the March quarter, according to an exchange filing on Tuesday. The net profit for the fourth quarter of FY26 has more than doubled to Rs 612 crore, compared to Rs 250 crore in the previous quarter. Brokerages, however, remain split on the growth outlook.

Analysts had estimated profit to come in at Rs 445 crore, as per Bloomberg. Revenue rose 5.2% to Rs 4,450 crore compared to Rs 4,232 crore in the previous quarter. Earnings before interest, taxes, depreciation surged nearly 26% to Rs 696 crore, against Rs 554 crore in the third quarter of FY26. Margin expanded to 15.6% from 13.1%. 

Jeffferies, by far, was the most bullish, maintaining its Buy rating, and hiking the target price to Rs 1,860 from Rs 1,620. This implies a nearly 60% upside from current levels. UBS  maintained a Neutral rating with a target price of Rs 1,240. Citi was the most cautious, with a Sell rating and a target price of Rs 1,115.

ALSO READ: Coforge Q4 Results: Net Profit More Than Doubles, Dividend Deferred; Shares Swap For Cigniti Deal Declared

Here are the key takeaways by the brokerages.

UBS on Coforge

• UBS maintains a Neutral rating with a target price of Rs 1,240.
• FY27 outlook remains robust.
• Q1FY27 growth is expected to remain flattish due to deal closure timing.
• The company expects FCF-to-PAT conversion above 100% in FY27.

Citi on Coforge

• Citi maintains a Sell rating with a target price of Rs 1,115.
• Q4 revenue growth remained slower despite margin outperformance.
• Executable order book growth moderated to 16% YoY.
• Management continues to guide for industry-leading growth despite a challenging environment.

Jefferies on Coforge

• Jefferies maintains a Buy rating and hikes the target price to Rs 1,860 from Rs 1,620.
• Q4 results beat expectations, driven by stronger margins and robust free cash flow conversion.
• Strong deal wins and a 16% YoY rise in executable order book provide growth visibility.
• The brokerage expects double-digit organic growth and 23% EPS CAGR over FY27–29.
• Valuations remain attractive at 19x one-year forward PE.

ALSO READ: Coforge Completes Encora Acquisition; Secures $550-Million Loan, Drops QIP Plan

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