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.
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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