Coforge (COFORGE IN) – Event Update – Accelerating AI stack to scale production – BUY

We attended Coforge’s webinar on Enterprise Autonomy, where management outlined its vision of moving from AI-assisted services to Enterprise Autonomy, marking the continued shift in services delivery model. Management highlighted that while ~2/3 of the company’s clients have adopted agentic AI capabilities, only 5% are currently able to orchestrate autonomy, reflecting gaps in enterprise context, data readiness, security and control/cost. Coforge is addressing these gaps through its integrated Nuuron, AgenticOps, AI-ready data and Momentuum Blue/FDE offerings, enabling clients to move from individual AI use cases towards production-scale autonomous workflows. Management highlighted that clients are increasingly adopting a multi-model architecture, including open-source models (now at ~35% token consumption), as the capability gap between models narrows, creating opportunities around model optimization, token economics, security and governance. Coforge expects AI to expand wallet share through greater consolidation of client workflows, while continuous agent creation, reskilling, retraining and workflow redesign could create a multi-year revenue opportunity as enterprises scale autonomy. As autonomy moves into production, security, guardrails, compliance and human-in-the-loop controls are becoming increasingly important, creating incremental services opportunities and driving continued investment in AI capabilities. Coforge invested US$58mn in AI innovation in FY26 and has built 100+ reusable agent archetypes, while Momentuum Blue (FDE operating unit) currently has ~70–75 FDEs and targets 150 by March 2028, supported by an in-house FDE academy and structured training and shadowing program before deployment. We maintain our BUY rating with a target price of INR 2,120, based on 28x FY28E EPS.