Coforge shares surged by over 6 percent on October 27 following the announcement of its impressive second-quarter results for the financial year 2026. The stock was trading at Rs 1,866.60 in early trading on Monday, making it the top gainer on the Nifty IT index, which rose by approximately 0.5 percent. The company released its results in the post-market hours on October 24, revealing a consolidated net profit of Rs 376 crore, a remarkable 77.5 percent year-on-year increase from Rs 212 crore reported in the same quarter last year. Additionally, the company’s revenue from operations grew by 32 percent year-on-year, reaching Rs 3,985.7 crore.

In conjunction with its Q2 results, Coforge declared a second interim dividend of Rs 4 per equity share, with October 31 set as the record date for shareholder eligibility. Following the positive earnings, major brokerages have raised their target prices for the stock. Morgan Stanley upgraded its rating to ‘overweight,’ setting a target price of Rs 2,030, reflecting an upside potential of more than 15 percent from the previous closing price of Rs 1,760. The brokerage noted an all-around performance in Q2, alleviating investor concerns and indicating strong visibility for growth and margins in the second half of the financial year.

JPMorgan also maintained an ‘overweight’ rating, with a more ambitious target price of Rs 2,500, suggesting an upside potential of over 42 percent from the last closing price. The firm highlighted that while the company's margins were a concern in the past, Coforge successfully delivered a 14 percent margin, surpassing estimates by 50 basis points. Although deal Total Contract Value (TCV) remained below the $500 million mark for the fifth consecutive quarter, JPMorgan noted improved demand and robust growth expected in the second half of FY26, buoyed by strong deal wins and an optimistic pipeline. Meanwhile, Nuvama also echoed the positive sentiment, reinforcing expectations for sustained growth in the upcoming quarters.