Coforge Share Price Outlook After Stellar Q1 Results, Dividend & Sabre Deal Momentum
Coforge Ltd, a leading mid-tier IT services company, delivered a blockbuster performance in its Q1 FY26 earnings, leading to a surge in investor interest. The stock is now in focus on both NSE and BSE following an impressive profit growth, robust order wins, and a healthy interim dividend declaration. Here's a deep dive into the company’s performance, share price action, and what to expect going forward.
Coforge Q1 FY26 Highlights: Outperformance Across Metrics
On July 23, 2025, Coforge announced its Q1 FY26 results post market hours, and the numbers surpassed market expectations. The company reported a Profit After Tax (PAT) of ₹317 crore, a sequential growth of 21.5% and an eye-popping 138.4% year-on-year (YoY) growth.
Revenue stood at ₹3,689 crore, marking an 8.2% QoQ and a whopping 56.5% YoY rise. In dollar terms, the revenue rose to $442 million, a 9.6% sequential and 54.5% YoY increase—significantly outperforming peers like LTIMindtree (0.8%) and Persistent Systems (3.3%) in constant currency revenue growth.
Sabre Deal Ramp-Up Powers Travel Segment
The standout growth driver was the ramp-up of the massive $1.6 billion Sabre deal, which led to a 31% sequential growth in Coforge’s travel, tourism, and hospitality segment. This validates the company’s strong execution capabilities and relationship management.
Dividend Declaration: Shareholders Cheer ₹4 Interim Dividend
The Board of Directors declared an interim dividend of ₹4 per share (i.e., 200%) with a record date of July 31, 2025. This signals the company's robust cash flow and commitment to shareholder returns.
Robust Deal Wins & Strong Pipeline
During Q1, Coforge secured $507 million worth of new orders, bringing its executable order book over the next 12 months to $1.55 billion, a 46.9% YoY rise. These included five large deals across North America, the UK, and Asia-Pacific.
EBITDA Margin Expansion and Stability in EBIT
EBITDA stood at $77.3 million, rising 13.6% QoQ and 50.1% YoY. The EBITDA margin improved to 17.5% from 16.9% last quarter. However, EBIT margin remained stable at 13.2%, slightly below analyst expectations of 13.5%.
Employee Growth and Retention
Coforge added 1,164 employees during the quarter, taking its total headcount to 34,187. Attrition remained low at 11.3%, among the best in the Indian IT industry, highlighting employee satisfaction and organizational stability.
AI-Led Offerings Driving Future Growth
CEO Sudhir Singh emphasized Coforge’s strategic push toward AI platforms such as the Quasar AI Marketplace and the AgentSphere library, which are seeing strong traction across BFSI, travel, and insurance verticals.
BFSI Segment Mixed, But Insurance Holds Steady
The BFSI vertical saw a marginal decline of 1.1%, while insurance registered a modest 1% sequential growth. This was expected due to a temporary slowdown in the BFS sector, which is likely to rebound in the coming quarters.
Stock Performance: Coforge Share Price Trend on NSE & BSE
Despite robust earnings, Coforge share price ended 0.7% lower at ₹1,846.20 on the NSE on the day of results, as early gains were erased due to profit booking. The stock has remained flat over the past month, showing consolidation after a previous rally.
Technical Analysis & Future Outlook
Based on the latest stock chart analysis, Coforge appears to be in a consolidation phase with support near ₹1,820 and resistance at ₹1,880. If it breaks out above ₹1,900 with volume, the next upside target could be ₹2,050 in the near term. Investors are closely watching the Coforge share price target tomorrow for short-term cues.
The medium- to long-term trend remains bullish given the strong fundamentals, order wins, and digital transformation tailwinds.
Should You Buy Coforge Shares Now?
With consistent profit growth, a strong order book, impressive margin expansion, and dividend yield, Coforge remains one of the most promising mid-cap IT stocks. Its outperformance compared to larger peers adds to its appeal for long-term investors.
That said, near-term price action may be choppy due to broader market volatility. Investors can consider accumulating on dips, especially if the stock approaches ₹1,800 levels.
Final Thoughts
Coforge's Q1 FY26 results have reinforced its positioning as a high-growth IT services company with a focus on execution, innovation, and stakeholder returns. The Sabre deal ramp-up, order wins, AI-led platforms, and stable margins make Coforge Ltd a stock to watch in the coming quarters.
As global IT spending recovers and digital transformation accelerates, Coforge is well-positioned to deliver its ninth consecutive year of growth. Investors looking for quality mid-cap exposure in tech should keep this stock firmly on their radar.
Disclaimer: This article is for informational purposes only and not a recommendation. Please consult your financial advisor before making investment decisions.
Join WhatsApp Group
