Coforge’s shares surged to an eight-month peak as investor confidence grows around its AI-driven digital transformation services and strategic acquisitions, signalling strong future growth prospects amid a broader tech rally.
Coforge’s shares climbed to an eight-month high on Thursday as investors continued to pile into the mid-cap information technology name, which has rebounded sharply from a steep sell-off earlier this year. The stock touched ₹1,887.70 in intraday trade on the BSE, up about 4%, and was still holding firm in afternoon trading as volumes ran more than three times the recent norm.
The rally has been swift. Coforge has gained 7% across the past two sessions and roughly 31% over the last month, recovering 87% from its 52-week low of ₹1,008.50 reached on March 17. That low followed a bruising spell of weakness in March, when the shares came under sustained selling pressure and briefly marked the bottom of their 12-month trading range.
Even after the recent surge, the stock remains below its 52-week peak of ₹1,988.90, set in December last year. But the move back towards that level reflects a renewed belief that the company’s business mix and deal pipeline can support further earnings growth. Coforge, formerly NIIT Technologies, sells digital transformation services across banking, travel, healthcare and technology sectors, with a growing emphasis on cloud, data and artificial intelligence-led offerings.
Management has kept its FY27 guidance unchanged, including targets for Ebitda margin, standalone and consolidated Ebit margin, and free cash flow conversion above profit after tax. Analysts at Axis Securities, Choice Institutional Equities and ICICI Securities have all stayed positive, pointing to the company’s AI-led engineering platform, the integration benefits from Encora, a strong balance sheet and healthy cash generation. Axis has a target price of ₹2,050, while ICICI Securities and Choice have also highlighted the stock’s record order book and improving visibility.
According to brokerage commentary, AI-led engineering, cloud and data services now account for 86% of Coforge’s revenue, supported by more than 11,000 data and AI practitioners, eight AI platforms and over 100 reusable AI agents. Analysts say that combination leaves the company well placed to benefit from enterprise spending on artificial intelligence, even after the sharp rerating seen in recent weeks.
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