Nomura retains a ‘Buy’ rating on Coforge, with a marginal revision of the target price to ₹10,250 from ₹10,280. The brokerage has adjusted its FY25-27 EPS estimates by 0-6% to account for higher ESOP costs and tax rates in the near term. Despite these adjustments, Nomura continues to favor Coforge as its top pick in the midcap IT sector, citing a strong executable order book that provides confidence in the company’s near- to medium-term outlook. Additionally, Nomura projects that Coforge’s operating margin will expand to 12.9-14% in FY26-27, reflecting expectations of improved profitability.
Coforge’s Q3FY25 Financial Highlights
In the third quarter of FY25, Coforge reported a total income of ₹2,323.3 crore, marking a 2.07% increase from the previous quarter and a 13.01% rise year-over-year. The company’s operating profit stood at ₹314 crore, a significant 19.07% sequential growth and a 5.69% increase compared to the same period last year. Net income reached ₹238 crore, up 31.49% quarter-over-quarter and 4.29% year-over-year. The operating margin was reported at 13.52%, reflecting a sequential improvement. These results underscore Coforge’s strong financial performance and its ability to maintain growth momentum in a competitive market.
