Overview
- Coforge posted Q2 revenue of Rs 3,985.7 crore, up 8.1% sequentially, with net profit up 18% to Rs 375.8 crore and EBIT margin improving to 14% with no one-offs.
- Free cash flow turned positive at $36.5 million, with several brokerages saying earlier worries over margin adjustments and cash generation were addressed.
- Jefferies, JPMorgan and Morgan Stanley raised target prices while retaining positive ratings, as Jefferies lifted EPS estimates by 2–5% and now models a 20% EPS CAGR.
- Deal momentum included 10 large wins in H1 and Q2 order intake of $514 million, taking the 12‑month executable order book to $1.63 billion, up 26.7% year on year.
- Management reiterated a 14% minimum EBIT margin for FY26 and indicated stronger H2 growth, though Motilal Oswal warned the target could be missed; shares rose more than 5% intraday.