The shares of Coforge surged over 6 percent on October 27, following the company's impressive results for the second quarter of the financial year 2026. Trading at Rs 1,866.60 per share during early hours, Coforge emerged as the top gainer in the Nifty IT index, which recorded a moderate rise of around half a percent. The strong financial performance, revealed after market hours on October 24, prompted several brokerages to increase their target prices, indicating significant potential for further growth.

In its Q2 financial report, Coforge announced a consolidated net profit of Rs 376 crore, reflecting a remarkable 77.5 percent year-on-year increase from Rs 212 crore in the same quarter of the previous year. Revenue from operations also saw robust growth, climbing approximately 32 percent YoY to Rs 3,985.7 crore, up from Rs 3,025.6 crore in Q2 FY25. In addition to these results, the company declared a second interim dividend of Rs 4 per equity share, with October 31 set as the record date for determining eligible shareholders.

Brokerages like Morgan Stanley and JPMorgan have both issued 'overweight' ratings for Coforge, with target prices of Rs 2,030 and Rs 2,500 per share, respectively. Morgan Stanley highlighted an upside potential of over 15 percent, praising Coforge's comprehensive performance that mitigated investor concerns. The brokerage also expressed confidence in the firm's growth and margins for the second half of the financial year. Meanwhile, JPMorgan noted that Coforge had exceeded margin expectations with a 14 percent margin, despite previously facing challenges. Although the total contract value (TCV) of new deals remained below the $500 million mark for the fifth consecutive quarter, JPMorgan acknowledged improved demand and anticipates strong growth driven by recent deal wins and a healthy pipeline.