Shares of information technology stock, Coforge jumped over 5% in early trade today. May 6, after the company posted a strong earnings report for the quarter ended March 2025. The firm’s net profit rose nearly 17% YoY to Rs 261.2 crore, and revenue surged 47% to Rs 3,410 crore. The company’s board has announced an interim dividend of Rs 19 per share for FY25, with May 12 set as the record date. Alongside this, Coforge has also declared a 1:2 stock split, meaning every one share will be split into two, with June 4 marked as the record date.
But what is really driving the optimism on Dalal Street is not just the quarterly performance. Top brokerage houses such as Nomura, Motilal Oswal, and Nuvama have all given a ‘Buy’ rating on the stock, with target prices ranging from Rs 9,400 to Rs 11,000, indicating an upside potential of up to 65% from current levels.
Let’s take a look at what they are saying –
Nomura: “Coforge is our top pick among midcap IT stocks”
The brokerage firm, Nomura has set a target price of Rs 9,730, predicting a nearly 30% upside from current levels. According to the brokerage, Coforge delivered 3.4% quarter-on-quarter growth in constant currency terms in Q4FY25, beating its own expectations. Growth was mainly fuelled by the Banking & Financial Services segment, which rose 11.6% in USD terms.
EBITDA margins stood at 16.9%, rising by 130 basis points sequentially, and EBIT margins improved by 140 bps to 13.2%.
“Management is targeting 18% EBITDA margin and 14% EBIT margin by FY27E,” the brokerage said, adding that margin expansion will be supported by lower ESOP costs and scale-driven operating leverage.
It also tweaked its earnings forecast slightly higher for the next two years, stating, “We tweak FY26–27F EPS by 1–2% following the 4QFY25 results. Coforge is our top pick in the mid-cap Indian IT services space.”
Motilal Oswal: “Reaching $2 billion revenue by FY27 is within reach”
The brokerage house Motilal Oswal has the most bullish outlook with a target price of Rs 11,000, suggesting a 47% potential upside.
The firm expects Coforge to post strong revenue, EBIT, and PAT growth in the coming quarters, particularly pointing to a 66.6% YoY jump in adjusted PAT for Q1FY26.
“The underlying business momentum is healthy, driven by consistent deal wins and resilient client spending,” the brokerage noted.
“This deal not only validates Coforge’s large-deal execution capabilities but also reinforces its ability to scale without materially impacting profitability,” it added.
Nuvama: “Expect over 25% earnings CAGR from FY25-27”
Nuvama Institutional Equities also maintained its ‘Buy’ rating, setting a 12-month target of Rs 9,400. The key highlight for the brokerage was the 174% jump in total contract value and a 48% rise in the 12-month executable order book.
“This lays the foundation of a very strong FY26 and reaffirms its growth leadership in the sector,” the brokerage said.
Margins have also improved, thanks to better operating leverage and a reduction in ESOP expenses. EBIT margins improved 123 bps sequentially, and ESOP-related costs dropped significantly.
The management’s target of $2 billion in revenue and 18% EBITDA margin by FY27 remains intact.
“Coforge reported 32% constant currency YoY growth in FY25, about 16% organic a solid industry-leading performance,” the brokerage said. It expects the company to deliver 20% revenue growth in FY26 and over 25% earnings CAGR over FY25–27, aided by strong bookings and execution.