JPMorgan has maintained its overweight rating on Coforge with a target price of ₹2,500 per share following a solid Q2FY26 performance that beat expectations on margins and cash flows. The brokerage said the company needed to deliver after recent challenges — and it did so convincingly.
EBIT margins came in at 14%, beating consensus and JPMorgan estimates by 30 basis points and 50 basis points, respectively. Revenue grew 5.9% quarter-on-quarter in constant currency and came broadly in line with expectations, while deal total contract value (TCV) remained above $500 million for the fifth consecutive quarter.
Free cash flow turned positive during the quarter, with FCF-to-PAT conversion at 86%, comfortably above its 75–80% target range. Management indicated that demand trends have improved modestly and expects robust growth in the second half on the back of strong deal wins and a healthy pipeline.
JPMorgan added that Coforge continues to target a 14% EBIT margin for FY26 and remains well-placed among mid-tier IT peers due to its consistent execution and financial discipline.
Disclaimer: The views and recommendations above are those of JPMorgan. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
