Coforge Ltd Q2FY26 | ₹3,986 Cr Revenue, ₹425 Cr Profit – From NIIT Tech to GenAI Preacher, The IT Midcap That Refuses To Sit Still
1. At a Glance
Coforge — the ex-NIIT Tech kid who grew up, rebranded, and now walks around talking about AI like it invented ChatGPT. Q2FY26 results are loud and proud: Revenue ₹3,986 crore, up 31.7% YoY, and PAT ₹425 crore, up a thundering 75.9% YoY. At ₹1,760/share, this midcap maverick now commands a ₹58,900 crore market cap with a P/E of 51.7, a number that screams “I’m priced like an influencer with a tech certificate.”
It’s been raining dividends — ₹4 interim dividend just declared (after a ₹76 monster earlier this year) — because nothing says confidence like paying your shareholders to ignore your book value of ₹191.
And if that wasn’t enough, they’re currently in the process of absorbing Cigniti Technologies, because apparently one IT company wasn’t chaotic enough.
2. Introduction
Once upon a time, there was NIIT Technologies — a modest IT exporter living in TCS and Infosys’s shadow. Then came 2019, when Hulst B.V. swooped in like a private equity messiah, bought 70%, renamed it Coforge, and set it on a caffeine drip of acquisitions, rebranding, and PowerPoint slides titled “Digital Transformation.”
Five years later, Hulst exited completely in FY24, leaving the company to fend for itself — and surprisingly, it’s thriving. The new Coforge has evolved from a project-based IT vendor into a domain-led digital transformation firm, working across BFSI, insurance, travel, and manufacturing verticals — basically wherever there’s legacy code begging for a cloud migration.
The company operates in 21 countries and partners with every major cloud deity — Microsoft, AWS, Google, Salesforce, Pegasystems, and Appian — like a tech priest with multiple gods.
But here’s the real twist: while the big IT boys (TCS, Infosys) yawn through low-single-digit growth, Coforge is sprinting like it has something to prove — posting 40%+ YoY growth for the last twelve months. Not bad for a ₹58,000 crore company with no promoter left to blame.
3. Business Model – WTF Do They Even Do?
Coforge’s business model is simple yet dramatic: take complex client problems, add buzzwords, and bill in dollars.
They focus on digital transformation, product engineering, data analytics, and automation — the holy trinity of modern IT services. Essentially, they’re the consultants companies call when they want to say “cloud-native” but don’t know how.
Their vertical mix is balanced enough to survive multiple economic tantrums:
Banking & Financial Services (BFS): 32%
Insurance: 22%
Travel & Logistics: 18%
Manufacturing & Others: 28%
Geographically, Coforge is diversifying faster than NRIs with second passports:
US: 48%
EMEA: 40%
APAC: 7%
India: 5%
Service-wise, Intelligent Automation is the new darling (11%), while Data & Integration (25%) and ADM (27%) carry the bulk of the load.
The company’s order book of US$ 1.9 billion ensures that their coffee machines will stay busy for the next few years. Add to that 61+ Global 1000 clients, and you’ve got a midcap IT firm punching above its weight — and charging like a heavyweight.
4. Financials Overview
Source table
Metric
Latest Qtr (Q2FY26)
YoY Qtr (Q2FY25)
Prev Qtr (Q1FY26)
YoY %
QoQ %
Revenue
₹3,986 Cr
₹3,026 Cr
₹3,689 Cr
+31.7%
+8.0%
EBITDA
₹732 Cr
₹423 Cr
₹577 Cr
+73.1%
+26.8%
PAT
₹425 Cr
₹234 Cr
₹356 Cr
+75.9%
+19.4%
EPS (₹)**
11.23
6.06
9.49
+85.3%
+18.3%
Commentary: Coforge is on fire — and not the bad kind like a data center meltdown. Margins expanded to 18% OPM, a solid recovery after pandemic-era volatility. PAT nearly doubled YoY, driven by operating leverage and strong order execution. If you’re wondering how they manage this — just remember, every digital transformation pitch comes with a 40-slide deck and a 60% gross margin.
5. Valuation Discussion – Fair Value Range
(a) P/E Method: EPS (annualized) = ₹35.2 × 4 = ₹140.8 (TTM basis already) Peer average (Midcap IT) = 33x – 38x Fair Value Range = ₹1,550 – ₹1,850
📘 Educational Fair Value Range: ₹1,550 – ₹1,950 per share (This range is purely educational and not investment advice.)
6. What’s Cooking – News, Triggers, Drama
Q2FY26 Results: Revenue ₹3,986 Cr, PAT ₹425 Cr, and interim dividend ₹4/share.
Cigniti Acquisition: NCLT approved scheme; 54% stake acquisition for ₹2,000 Cr, expected to close FY26. This creates new verticals in Retail, Tech, and Healthcare — a ₹2B revenue ambition by FY27.
Subsidiary Wind-up: Two UK subs — Coforge SF and Coforge DPA — to be shut for “efficiency.” Translation: no one remembers what they did.
