Coforge Share Price has been a focal point for investors following the company’s Q1 FY26 results announcement on July 23, 2025. Despite a remarkable 21.5% quarter-on-quarter (QoQ) and 138.4% year-on-year (YoY) surge in net profit to ₹317 crore, alongside a 56.5% YoY revenue increase to ₹3,689 crore, Coforge shares plummeted nearly 9% in a single trading session. This unexpected dip, even as the company declared an interim dividend of ₹4 per share, has left investors questioning the market’s reaction. For those tracking Coforge Share Price, this article provides a comprehensive analysis of the Q1 FY26 performance, the reasons behind the stock’s decline, and what it means for investors.
With insights into financials, strategic initiatives, and market sentiment, this guide aims to empower you with actionable information to navigate Coforge’s investment landscape.
Understanding Coforge Share Price Q1 FY26 Performance
Key Financial Highlights
Coforge’s Q1 FY26 results showcased significant growth, driven by strong operational performance and strategic deal wins. Here’s a breakdown of the key metrics:
- Net Profit: Rose 21.5% QoQ to ₹317 crore from ₹261 crore in Q4 FY25, and surged 138.4% YoY from ₹133 crore in Q1 FY25.
- Revenue: Increased 8.2% QoQ to ₹3,689 crore from ₹3,410 crore, and grew 56.5% YoY from ₹2,357 crore.
- Revenue in Constant Currency (CC): Grew 8% QoQ and 56.5% YoY, reflecting robust demand across verticals.
- EBITDA Margin: Improved by 61 basis points QoQ to 17.5%, though EBIT margin contracted slightly to 11.3% from 11.8%.
- Order Intake: Secured $507 million in new deals, down from $2.1 billion in Q4 FY25 (which included the Sabre deal), but the executable order book for the next 12 months rose 44% YoY to $1.54 billion.
- Interim Dividend: Declared ₹4 per share, with a record date of July 31, 2025, payable within 30 days.
These figures highlight Coforge’s ability to deliver strong growth, though the results slightly missed analyst expectations, contributing to the stock’s decline.
Why Did Coforge Share Price Fall?
Despite the impressive financials, Coforge Share Price dropped 8.92% to an intraday low of ₹1,684 on July 24, 2025, from a previous close of ₹1,849.70. Several factors contributed to this:
- Missed Analyst Estimates: Analysts projected a net profit of ₹335 crore and revenue of ₹3,723 crore, but Coforge reported ₹317 crore and ₹3,689 crore, respectively. The EBIT margin of 11.3% also fell short of the 13.5% estimate.
- Profit Booking: After a 46% rally from April lows, investors likely engaged in profit booking, leading to the sharp decline.
- Lower Order Intake: The $507 million in new deals was significantly lower than Q4’s $2.1 billion, raising concerns about future growth momentum.
- Market Sentiment: Broader market caution and volatility in the IT sector, coupled with concerns over global economic uncertainties, may have amplified the sell-off.
CEO Sudhir Singh remained optimistic, stating, “The 9.6% sequential dollar growth, a 46% YoY rise in the order book, and a clear path to 14% EBIT in FY26 point to an exceptional fiscal year.”
Strategic Initiatives Driving Growth
AI and Digital Transformation
Coforge is leveraging artificial intelligence (AI) as a key growth driver, integrating it into business-critical infrastructure. The company launched two AI platforms in May 2025—Quasar GenAI Central and Quasar Marketplace—to accelerate responsible AI adoption. These platforms enhance productivity by providing centralized access to generative AI models and curated solutions, positioning Coforge as a leader in the AI-driven IT services space.
Case Study: Coforge’s multi-year contract with the national airline of Ireland demonstrates its ability to deliver AI-driven solutions for legacy modernization and autonomous operations, enhancing operational efficiency for global clients.
Robust Deal Pipeline
Coforge’s executable order book for the next 12 months grew to $1.54 billion, a 44% YoY increase, reflecting strong client demand. The company signed five large deals in Q1 across North America, the UK, and APAC, reinforcing its global footprint. The focus on Banking, Financial Services (BFS), and travel verticals has been a key growth driver, despite weaker performance in insurance.
Margin Expansion Strategy
Coforge’s EBITDA margin improved to 17.5%, driven by operational efficiencies and cost optimization. The company aims to achieve a 14% EBIT margin in FY26, supported by a disciplined execution strategy and investments in high-margin AI and digital services.
Dividend Policy
Coforge has a strong history of rewarding shareholders, with four interim dividends of ₹19 each in 2023 and 2024, and two in 2025 (January and May) at ₹19 each, alongside the recent ₹4 per share dividend. The current dividend yield stands at 0.76%.
Industry Context and Peer Comparison
IT Sector Performance
The IT sector has faced mixed sentiment in 2025, with global economic uncertainties impacting client spending. However, Coforge’s 56.5% YoY revenue growth outperforms peers like Infosys (7.5% YoY) and TCS (11% YoY), reflecting its strong positioning in high-growth verticals.
| Company | Q1 FY26 Net Profit (YoY) | Q1 FY26 Revenue (YoY) | Dividend |
|---|---|---|---|
| Coforge | +138.4% (₹317 cr) | +56.5% (₹3,689 cr) | ₹4/share |
| Infosys | +9% (₹6,921 cr) | +7.5% (₹42,279 cr) | Not specified |
| TCS | +2% (₹1,418 cr) | +11% | Not specified |
Coforge’s aggressive growth contrasts with larger peers, though its smaller market cap (₹62,168 crore) makes it more sensitive to market volatility.
Market Reaction and Analyst Outlook
The 9% drop in Coforge Share Price reflects short-term market disappointment, but analysts remain optimistic. Morgan Stanley maintained an “Overweight” rating with a target price of ₹1,880, citing strong revenue growth driven by travel and BFS verticals. Nuvama and Antique also upheld “Buy” ratings, with target prices of ₹9,400 and ₹9,650, respectively, for FY26, based on robust deal wins and margin expansion potential.
Challenges and Opportunities
Challenges
- Margin Pressure: The EBIT margin contraction to 11.3% signals challenges in balancing wage inflation and operational costs.
- Lower Deal Wins: The drop in order intake to $507 million from $2.1 billion raises concerns about sustaining growth momentum.
- Attrition: While improved to 10.9% in Q4 FY25, attrition remains a concern for talent retention in a competitive IT market.
- Global Macro Risks: Client caution in discretionary spending, particularly in insurance, could impact future quarters.
Opportunities
- AI Leadership: Investments in AI platforms like Quasar GenAI Central position Coforge to capitalize on growing demand for AI-driven solutions.
- Strong Order Book: The $1.54 billion executable order book ensures revenue visibility for FY26.
- Emerging Markets: Growth in APAC and the UK, alongside North America, diversifies revenue streams.
- Dividend Appeal: A consistent dividend policy enhances Coforge’s attractiveness to income-focused investors.
FAQ Section
Why Did Coforge Share Price Drop After Q1 FY26 Results?
The Coforge Share Price fell nearly 9% to ₹1,684 on July 24, 2025, despite a 21.5% QoQ and 138.4% YoY profit surge to ₹317 crore. The decline was driven by the company missing analyst estimates, which projected a net profit of ₹335 crore and revenue of ₹3,723 crore. The EBIT margin of 11.3% also fell short of the expected 13.5%, raising concerns about profitability. Profit booking played a significant role, as the stock had rallied 46% from April lows, prompting investors to lock in gains. Additionally, the order intake of $507 million was lower than Q4’s $2.1 billion, sparking worries about growth momentum.
However, the $1.54 billion executable order book (up 44% YoY) and a positive FY26 outlook, with a target EBIT margin of 14%, suggest the dip may be temporary. Investors should monitor deal wins and margin trends for long-term clarity.
What Were the Key Highlights of Coforge’s Q1 FY26 Results?
Coforge’s Q1 FY26 results, announced on July 23, 2025, demonstrated robust growth. Net profit surged 21.5% QoQ to ₹317 crore from ₹261 crore, and 138.4% YoY from ₹133 crore. Revenue grew 8.2% QoQ to ₹3,689 crore from ₹3,410 crore, and 56.5% YoY from ₹2,357 crore. In constant currency terms, revenue increased 8% QoQ, driven by strong performance in travel and BFS verticals. The EBITDA margin improved to 17.5%, up 61 basis points QoQ, though the EBIT margin contracted to 11.3%.
The company secured $507 million in new deals, with a 12-month executable order book of $1.54 billion, up 44% YoY. Coforge also declared an interim dividend of ₹4 per share, reinforcing its shareholder-friendly approach. These results highlight Coforge’s growth trajectory, despite missing analyst estimates.
How Does Coforge’s Dividend Policy Impact Investors?
Coforge’s interim dividend of ₹4 per share, declared on July 23, 2025, with a record date of July 31, adds to its history of consistent shareholder rewards. The company paid four interim dividends of ₹19 each in 2023 and 2024, and two in 2025 (January and May) at ₹19 each, with a current dividend yield of 0.76%. This policy enhances Coforge’s appeal to income-focused investors, providing a steady income stream alongside capital appreciation potential.
The stock’s 34.27% YoY return as of July 2025 outperforms the Nifty 50’s 49.89% over three years, making it attractive for long-term investors. However, the recent 9% share price drop suggests short-term volatility. Investors should weigh the dividend yield against market risks and consult financial advisors before investing.
What Is Coforge’s Outlook for FY26?
Coforge’s management is optimistic about FY26, targeting a 14% EBIT margin, up from 13.2% in Q1, driven by operational efficiencies and high-margin AI services. The $1.54 billion executable order book, a 44% YoY increase, ensures revenue visibility, supported by five large deals signed in Q1 across North America, the UK, and APAC. The company’s focus on AI, through platforms like Quasar GenAI Central, positions it to capitalize on growing demand for digital transformation.
Despite a lower Q1 order intake of $507 million compared to Q4’s $2.1 billion, CEO Sudhir Singh emphasized a robust deal pipeline and broad-based growth across verticals. Analysts like Nuvama and Antique maintain “Buy” ratings with target prices of ₹9,400 and ₹9,650, respectively, citing strong fundamentals. However, risks like margin pressure and global economic uncertainties warrant caution.
Should You Invest in Coforge Shares After the Q1 FY26 Results?
Deciding whether to invest in Coforge shares post-Q1 FY26 requires balancing its strong fundamentals against short-term volatility. The 21.5% QoQ profit growth to ₹317 crore and 56.5% YoY revenue increase to ₹3,689 crore highlight Coforge’s growth potential. The $1.54 billion order book and AI-driven initiatives like Quasar GenAI Central position it well for FY26. However, the 9% share price drop reflects missed analyst estimates and profit booking after a 46% rally.
Analysts remain bullish, with Morgan Stanley’s ₹1,880 target and Nuvama’s ₹9,400 target, but risks like margin contraction (11.3% EBIT) and lower order intake ($507 million) suggest caution. The ₹4 per share dividend adds income appeal. Investors should assess risk tolerance, monitor deal wins, and consult financial advisors before deciding.
How Does Coforge Compare to Its Peers in Q1 FY26?
Coforge’s Q1 FY26 performance outshone larger peers like Infosys and TCS in revenue growth, with a 56.5% YoY increase to ₹3,689 crore compared to Infosys’ 7.5% and TCS’s 11%. Its 138.4% YoY profit growth to ₹317 crore also surpassed Infosys’ 9% and TCS’s 2%. However, Coforge’s smaller market cap (₹62,168 crore) makes it more volatile, as seen in the 9% share price drop. The company’s focus on AI and a $1.54 billion order book gives it a competitive edge in high-growth verticals like BFS and travel.
Unlike Infosys, which raised FY26 guidance to 1–3%, Coforge’s guidance remains aggressive, targeting a 14% EBIT margin. Investors should compare Coforge’s high P/E ratio (76.55) with peers and consider its growth potential against market risks.
Conclusion
The Coforge Share Price dip following its Q1 FY26 results, despite a 21.5% QoQ profit surge to ₹317 crore and a 56.5% YoY revenue increase to ₹3,689 crore, reflects short-term market dynamics like profit booking and missed analyst estimates. However, Coforge’s robust $1.54 billion order book, AI-driven growth strategy, and consistent dividend policy (₹4 per share interim dividend) underscore its long-term potential. With a focus on high-margin services and a 14% EBIT margin target for FY26, Coforge remains a compelling investment in the IT sector. Investors should stay informed through trusted sources like Coforge’s Investor Relations or Business Today. Share your thoughts on Coforge’s outlook in the comments or sign up for our newsletter for the latest market updates!