Jefferies has maintained its buy rating on Coforge with a target price of ₹2,180 per share, noting that Q2FY26 results were in line with expectations on revenue growth but ahead on margins and cash flow generation. The brokerage said revenue rose 6% quarter-on-quarter in constant currency, while EBIT margins expanded by 80 basis points sequentially to 14%, surprising positively.
Jefferies added that the company’s strong free cash flow conversion, at 75–80% of PAT, reinforces confidence in its operational efficiency. The brokerage said the management’s commitment to maintaining at least 14% EBIT margins and healthy cash generation should help allay investor concerns about profitability and the quality of growth.
The firm raised its earnings estimates by 2–5% and now expects Coforge to deliver a 20% EPS CAGR over FY26–28, supported by a strong order pipeline, steady client retention, and improving demand environment in key verticals.
Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.