Coforge (COFORGE IN) – Q3FY26 Result Update – Order book strength supports strong FY27 outlook – BUY
Published on 23 Jan 2026
The revenue growth performance (+4.4% QoQ CC) exceeded our estimates (+3.0% QoQ CC), aided by broad-based growth across verticals and service lines. BFS growth was slightly volatile due to ongoing transition of business head and partly on account of furloughs. The management was confident to derive growth within BFS and TTH on the back of 2 large wins in BFS out of the 6 large deal wins in Q3. The cumulative large deal wins in 9MFY26 stood at 16 vs 14 deals reported for the full year FY25. The order intake was robust at USD1.6b for 9MFY26 (+21% YoY), even the NTM executable order book stands healthy at USD1.7b (+26% YoY). We believe the cumulative large wins, strong revenue conversion and elevated order intake setting up solid foundation for organic USD growth of 17%/14% in FY27E/FY28E. On margins, the numbers were largely in line, while the company re-iterated to keep a tight band at ~14% operating level. We are passing on Q3 revenue beat, revising our FY26 organic revenue to ~25% (24.5% earlier). We are largely keeping our revenue and margin estimates unchanged for FY27E/FY28E. We assign 32x to FY28E EPS that translates a TP of 2,150. Maintain BUY.
