Coforge Ltd. shares surged as much as 9.2% to Rs 1,669.70 on Tuesday after the company approved a plan to expand into China and reported June-quarter earnings that showed strong revenue growth despite lower profit.
The stock recorded its biggest intraday gain since May 6, 2026.
The board has given in-principle approval to set up an entity in China as part of the company's expansion strategy, Coforge said in an exchange filing.
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The announcement came alongside the company's financial results for the quarter ended June 30, 2026.
Coforge reported a mixed performance for the April-June quarter. Consolidated revenue increased 24.2% quarter on quarter to Rs 5,528 crore from Rs 4,450 crore. EBIT rose 16% to Rs 817 crore from Rs 704 crore.
However, the EBIT margin narrowed to 14.8% from 15.8% in the previous quarter.
Consolidated net profit declined 15.3% sequentially to Rs 519 crore from Rs 612 crore after the company recorded a one-time loss of Rs 55 crore during the quarter.
The board also approved an interim dividend of Rs 4 per equity share.
Coforge (Q1, Consolidated QoQ)
- Revenue up 24.2% to Rs 5,528 crore versus Rs 4,450 crore.
- EBIT up 16% to Rs 817 crore versus Rs 704 crore.
- EBIT margin at 14.8% versus 15.8%.
- Net profit down 15.3% to Rs 519 crore versus Rs 612 crore.
- Reported one-time loss of Rs 55 crore in Q1.
- Board declared interim dividend of Rs 4/share.
The board approved an interim dividend of Rs 4 per equity share.
Trading activity also picked up sharply. Volume was nearly eight times the stock's 20-day average, according to Bloomberg data.
Analyst sentiment remained largely positive. Of the 40 analysts tracked by Bloomberg, 33 recommend buying the stock, four have a hold rating and three recommend selling.
The consensus target price compiled by Bloomberg stands at Rs 1,684.62, implying a potential upside of about 3.6% from the stock's last regular trading price.
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