Coforge Q2 Review: IDBI Capital Maintains 'Buy', Hikes Target Price — Here's Why

Coforge drives enterprise transformation through AI-led platforms like Code Insight AI, BlueSwan, and Quasar AI, enabling intelligent automation, scalable AI deployment, and operational efficiency..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Coforge Ltd. reported a strong Q2 FY26 with consolidated revenue of Rs 3,855 crore ($462 million), growing 8.1%/26.7% QoQ/YoY in INR terms, driven by robust growth in Travel (+6.4%), Healthcare, Retail and Hi-Tech (+5.9%), Insurance (+1.8%), and BFSI (+4%) sectors. Ebit margin expanded 251bps QoQ to 14%, supported by lower ESOP costs and operating leverage, despite higher hedge losses. PAT margin improved to 9.4%. Order intake reached $514 million with five large deals, lifting the executable order book to $1.63 billion, up 26.7% YoY. Employee strength increased to ~35,000 with a low attrition rate of 11.4% and utilization at 82.3%. Free cash flow was strong at $37 million, with a healthy FCF to PAT ratio of 86%. Management reaffirmed FY26 guidance targeting 14% Ebit margin and 70-80% FCF conversion, with FY27 revenue aimed at $2 billion.Company’s distinctive AI-led solutions, including proprietary platforms across automation and software engineering, fuel its ongoing enterprise transformation work and margin expansion. We reiterate our Buy rating, valuing the stock with an upgraded target price of Rs 2,030, implying 38.1x FY27E EPS..Click on the attachment to read the full report:.Coforge Q2 Review: Target Price Hiked By Three Top Brokerages — Here's Why.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Coforge Q2 Review: IDBI Capital Maintains 'Buy', Hikes Target Price — Here's Why

Coforge’s distinctive AI-led solutions, including proprietary platforms across automation and software engineering, fuel its ongoing enterprise transformation work and margin expansion.

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