Synopsis: Shares of the IT company remained in focus after it secured a large multi-year AI transformation contract from a major European client, strengthening its order book and reinforcing its enterprise AI capabilities.
The shares of this mid cap company majorly engaged in providing end-to-end software solutions and services across the globe which includes US, Singapore, Australia, UK and many more in focus after the company wins major deal.
With the market capitalization of Rs. 64,535 Crores, the shares of Coforge Ltd, were trading at around Rs. 1458 per share which is 26 percent discount from its 52 week high of Rs. 1990 per share and is trading at a P/E of 39.3 whereas industry P/E stands at 21
What is the NEWS
Coforge has secured a five-year deal with a large European customer for its AI-enabled business transformation program with a value in excess of $230 million (approximately Rs. 1,990 crore). This is among the biggest deals for Coforge that has been awarded in Europe with AI at its core, and will entail transformation of the operations of the client through Low Code / No Code Platforms, AI-driven Automation, and AI-enabled software development.
This deal comes in the wake of the increased interest for implementing enterprise-wide AI as organizations look to go beyond the trial phase. Coforge will leverage its strengths in functional knowledge, platform engineering, and an AI-first strategy to help the client in their innovation journey through future-proofing services.
As per the company’s business head for Europe, the pipeline of big AI-led transformation deals is increasing due to the increasing interest of enterprises in finding suitable partners for delivering AI-led solutions with tangible results.
About the Company and Financials
Coforge Limited is an international company providing IT services and artificial intelligence solutions for digital transformation, cloud, data, automation, and software engineering in BFS, travel, healthcare, insurance, government, retail, and manufacturing sectors. During FY26, growth in revenue was widespread, with 98% increase in healthcare and high tech, 62% increase in travel, 12% increase in BFS, 17.5% increase in government (outside India), and 27% in retail/ manufacturing.
Its top 5 accounts grew 45.8%, accounts ranked 6–10 grew 30%, while the top 10 clients contributed 30.8% of revenue and grew 40.4% YoY. The company closed FY26 with 21 large deals, a $1.75 billion executable order book (+16.4% YoY), while signed framework agreements provide additional revenue potential for FY27.
Year on Year analysis: Revenue from operations has increased from Rs. 3422 Crores in Q4 FY25 to Rs. 4450 Crores in Q4 FY26, up 30 percent. Operating profit has increased from Rs. 527 Crores to Rs. 876 Crores, up 66 percent and net profit has increased from Rs. 307 Crores to Rs. 666 Crores, up 117 percent
Quarter on Quarter analysis: Revenue from operations has increased from Rs. 4232 Crores in Q3 FY26 to Rs. 4450 Crores Q4 FY26, up 5 percent. Operating profit has increased from Rs. 723 Crores to Rs. 876 Crores, up 21 percent and net profit has increased from Rs. 297 Crores to Rs. 666 Crores, up 124 percent
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
