Coforge Limited (formerly NIIT Technologies) is a leading global IT services and digital transformation company with deep domain expertise in travel, transportation, banking, financial services, and insurance. Headquartered in Noida, India, Coforge has evolved into a high-growth mid-tier IT player under private equity ownership (EQT Partners). Despite reporting a sharp 46.8% decline in profit growth in FY2025—largely due to one-time restructuring costs and wage inflation—the company maintains strong revenue momentum, healthy client retention, and consistent dividend payouts. This article provides a fact-based outlook on its share price target for each year from 2026 through 2030.
Coforge Limited: Company Overview
- Incorporated: 2004 (demerged from NIIT Ltd); rebranded as Coforge in 2020
- Core Business Segments:
- Travel, Transportation & Hospitality (TTH): Global leader in airline and airport IT solutions
- Banking & Financial Services (BFS): Core banking, payments, and risk platforms
- Insurance: End-to-end solutions, including commercial insurance via AdvantageGo
- Emerging Verticals: Healthcare, public sector, and retail
- Key Strengths:
- Premium pricing due to vertical specialisation
- Strong client relationships with Fortune 500 companies
- High repeat business and low attrition
- Ownership: 0% promoter holding; controlled by private equity (EQT/Baring PE). Institutional ownership dominates: DII 53.67%, FII 34.53%
Coforge Limited: Key Financial Snapshot
| Metric | Value |
|---|---|
| Market Capitalization | ₹39,819.19 Cr |
| Current Share Price | ₹1,186 (as of Feb 2026) |
| P/E (TTM) | 58.64 |
| P/B (TTM) | 6.53 |
| Book Value (TTM) | ₹181.48 |
| EPS (TTM) | ₹20.22 |
| ROE | 11.96% |
| ROCE | 14.56% |
| Dividend Yield | 1.28% |
| Sales Growth (TTM) | 14.60% |
| Profit Growth (TTM) | -46.81% |
| Cash Reserves | ₹138.10 Cr |
| Debt | ₹446.90 Cr |
| Face Value | ₹2 |
Note: The steep profit drop is attributed to one-time restructuring charges, higher wage costs, and client-specific project delays—not a structural decline in demand.
Coforge Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹1,250 – ₹1,450 |
| 2027 | ₹1,350 – ₹1,600 |
| 2028 | ₹1,450 – ₹1,800 |
| 2029 | ₹1,550 – ₹2,000 |
| 2030 | ₹1,650 – ₹2,200 |
Targets assume normalisation of margins, sustained double-digit revenue growth, and continued leadership in travel-tech and BFSI.
Coforge Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹1,250 | ₹1,450 |
- High P/E (58.6x) reflects past growth; near-term upside depends on profit recovery
- Strong order book and Q4 FY2025 commentary suggest margin stabilisation
- Risk: Wage inflation and global IT spending caution may delay earnings rebound
Coforge Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹1,350 | ₹1,600 |
- Expected benefit from AI/cloud-led deals and insurance platform expansion
- Dividend consistency (1.28% yield, ~75% payout) adds income support
- Institutional dominance (88% combined DII+FII) ensures liquidity
Coforge Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹1,450 | ₹1,800 |
- By 2028, the cumulative effect of digital transformation contracts should reflect in margins
- Valuation may stabilise if ROCE sustains above 14%
- Execution risk: Client concentration in travel sector (~40% revenue)
Coforge Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹1,550 | ₹2,000 |
- Long-term tailwinds from global outsourcing, AI adoption, and cloud migration
- Debt-to-equity remains manageable despite ₹447 Cr debt
- No promoter pledging or governance concerns
Coforge Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹1,650 | ₹2,200 |
- If Coforge returns to 15%+ profit growth and expands in healthcare/public sector, ₹2,100+ is achievable
- However, targets beyond ₹2,300 require a breakthrough in non-travel verticals—not currently visible
- Brand strength and niche leadership remain key differentiators
Coforge Limited: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Domestic Institutions (DII) | 53.67% |
| Foreign Institutions (FII) | 34.53% |
| Public (Retail) | 11.80% |
| Promoters | 0% |
| Others | 0% |
The company is fully institutionalised, with no promoter involvement since EQT’s acquisition.
Coforge Limited: Strengths vs Risks
Strengths
- Leadership in travel-tech IT—serves 10 of the top 15 global airlines
- Consistent dividend payer with a high payout ratio (~75%)
- Strong revenue growth (14.6%) despite macro headwinds
- High client retention and deal wins in BFSI/insurance
Risks
- Profit volatility: -46.8% drop in FY2025 raises near-term concerns
- Low ROE (11.96%) limits valuation upside
- Client concentration in the travel sector increases cyclicality risk
- No promoter alignment—purely institutional ownership
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Moderate |
| Time Horizon | Long-term (5+ years) |
| Volatility | Moderate |
| Dividend/Income | Moderate (1.28% yield) |
| Ideal Investor | Growth-focused investor comfortable with IT sector cyclicality and institutional-only ownership |
FAQs
A: A realistic range is ₹1,250 to ₹1,450, assuming margin recovery and stable revenue growth.
A: Credible estimates suggest ₹1,650 to ₹2,200 by 2030, based on vertical diversification and digital demand.
A: Reliable forecasts beyond 2030 are not possible. Such long-term projections are speculative and not based on verifiable data.
A: Coforge has 0% promoter holding. It is owned by private equity firm EQT (formerly Baring PE) and institutional investors.
A: Yes. It has a strong dividend history with a current yield of 1.28% and a payout ratio of ~75%.
A: The stock corrected due to sharp profit decline (-46.8%), wage inflation, and broader IT sector de-rating in late 2025.
A: No. It carries ₹446.90 crore in debt, though this is offset by operating cash flows and strong client receivables.
Final Verdict
Coforge is a high-quality, niche IT player with unmatched strength in travel and BFSI technology. While its recent profit crash is concerning, underlying revenue trends remain healthy. Our 2026–2030 price targets (₹1,250–₹2,200) reflect cautious optimism—rewarding domain leadership but capping upside due to margin pressure and ownership structure. Best suited for investors with a 5-year horizon who believe in India’s global IT services edge.
Disclaimer: This article is for educational purposes only. It is not investment advice. Please consult a SEBI-registered advisor before making any investment decision.
Sources
- Screener.in – Coforge Ltd (Consolidated Financials)
- Finology.in – Company Essentials
- BSE India – Shareholding Pattern (Q3 FY2026)
- Coforge Annual Report FY2025
- Investor Presentation – Q2 FY2026 Results
Hi, I’m Raj Mittal, a stock market content writer focused on company analysis, share price trends, and fundamental research. I create simple, research-based insights to help investors make smarter market decisions.
