Shares of Coforge Ltd were down 3.96% at ₹1,776.40 on the NSE at 9:17 am on Wednesday following its Q1FY26 earnings, which came largely in line with Street expectations. The stock opened at ₹1,833 and hit a low of ₹1,775 in early trade, despite the company reporting robust growth across key financial metrics.
In Q1, Coforge posted revenue of ₹3,689 crore, reflecting a 56.5% YoY and 8% QoQ growth. Revenue in constant currency (CC) terms rose 8% QoQ, slightly above estimates of 6.5–7%. The company reported EBITDA of ₹644 crore, up 52% YoY and 12% sequentially, with operating margins improving by 61 bps QoQ to 17.5%.
Net profit stood at ₹317 crore, surging 138% YoY and 22% QoQ. The order intake for the quarter stood at $507 million, up 76% YoY, and the 12-month executable order book rose to $1.55 billion, a 47% YoY increase. The company also reported industry-low attrition of 11.3% and signed five large deals during the quarter.
Despite the strong operating performance, the stock saw pressure, possibly due to margin-related concerns flagged by Morgan Stanley. The brokerage retained its overweight call with a target price of ₹1,880, noting that while revenue growth at 8% in CC terms beat its 7.8% estimate, the EBIT and EBIT margins missed expectations. Growth was driven by the travel and other verticals, while BFS and insurance remained soft.
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