Coforge Surges Over 6% as Q2 Profit Jumps 77%; Morgan Stanley, JPMorgan Turn Bullish

Shares of Coforge Ltd jumped more than 6% to Rs.1,866.60 apiece in early Monday trading after the company’s stellar Q2 FY26 earnings surpassed market expectations. The stock emerged as the top gainer in the Nifty IT index, which was up around 0.5% overall. The rally came after Coforge released its quarterly results post-market hours on October 24.

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Q2 FY26 Results Overview

Coforge reported a consolidated net profit of Rs.376 crore for the July–September quarter of FY26 — a massive 77.5% year-on-year increase compared to Rs.212 crore in the same quarter last year. Revenue from operations also saw a 32% YoY growth, reaching Rs.3,985.7 crore, up from Rs.3,025.6 crore in Q2 FY25. Alongside the strong results, the company declared a second interim dividend of Rs.4 per equity share for FY26, with October 31 as the record date.

Morgan Stanley Raises Target

Global brokerage Morgan Stanley maintained an ‘Overweight’ rating on Coforge while raising its target price to Rs.2,030 per share, indicating a 15% upside from its previous closing price of Rs.1,760. The brokerage praised the company’s all-round performance, noting that Coforge has eased investor concerns by showcasing steady growth and margin stability. It added that the firm is well-positioned for continued momentum in H2 FY26 and aims to sustain strong revenue growth beyond FY26.

JPMorgan’s Bullish Outlook

JPMorgan also reiterated an ‘Overweight’ stance on the stock, lifting its target price to Rs.2,500 per share, suggesting a potential 42% upside. The brokerage highlighted Coforge’s margin improvement to 14%, exceeding its estimates by 50 basis points. While quarterly revenue growth of 5.9% QoQ (in constant currency) was in line with expectations, JPMorgan noted that deal wins remained below the $500 million mark for the fifth straight quarter. Despite this, it emphasized that management expects stronger H2 growth, supported by a robust deal pipeline and consistent execution.

Nuvama Maintains ‘Buy’ Rating

Brokerage Nuvama maintained a ‘Buy’ call on Coforge, revising its target price to Rs.2,250 per share, signaling an upside of nearly 28%. It lauded Coforge’s robust Q2 performance, noting continued strength in revenue growth and operating metrics. The firm’s solid earnings and clear growth trajectory are seen as key factors driving investor optimism.

Outlook: Strong Momentum Ahead

With a sharp rise in profits, improved margins, and positive commentary from global brokerages, Coforge appears set for a strong second half of FY26. The company’s steady deal pipeline, rising demand environment, and focus on sustaining 14% EBIT margins indicate a positive growth trajectory for the quarters ahead.

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