Coforge Shares Jump 5% After Securing $158 Million Deal with UK-Based Client

Synopsis: Shares of this IT stock rose 5% after securing a $158 million five-year contract from a UK-based client. The deal, starting April 2026, strengthens its European presence and reflects growing demand for AI-led digital transformation services.

IT stocks are witnessing positive sentiment today following news of Anthropic’s partnerships with several SaaS firms. The development has boosted investor confidence in the technology space, particularly around AI-driven innovation, leading to renewed buying interest across IT counters.

The shares of this IT services company provide end-to-end software solutions and services and is among the top-20 Indian software exporters are now in focus after it jumped by 5% after securing a $158 million five-year contract from a UK-based client. 

With a market capitalisation of Rs. 41,250 cr, the shares of Coforge Ltd were trading at Rs. 1,228 per share, increasing 5% in today’s market session, making a high of Rs. 1,266.60, up from its previous close of Rs. 1,207.65 per share. The stock has declined 20% over the past year, is down 26% year-to-date, has fallen 31% in the last six months, and slipped 26% in the past month.

About the order 

On February 25, 2026, Coforge Limited informed that it has secured a $158 million (approx Rs. 1,400 cr) five-year contract from a UK-based client. The contract will commence in April 2026, with revenue to be recognized evenly over the five-year tenure. The company also indicated that it expects additional ancillary revenue opportunities to arise from this core engagement over the contract period. 

Commenting on the development, John Speight, President and Europe Business Leader at Coforge, highlighted that AI-led discussions around innovation, governance, and resiliency are driving larger deal sizes across Europe. He noted that the company’s AI platforms including Forge-X, EvolveOps.AI, BlueSwan, Quasar, and Data Cosmos are positioned strongly to capitalise on such opportunities.

Coforge Limited is a global digital services and solutions provider that helps businesses drive transformation through emerging technologies and deep domain expertise. The company specialises in select industries and leverages its product engineering approach along with AI, cloud, data, integration, and automation capabilities to deliver real-world business impact. Coforge operates 33 global delivery centers and has a presence across 25 countries worldwide.

It reported year-on-year growth in Q3FY26, with revenue rising 29% to Rs. 4,188 crore compared to Rs. 3,258 crore in Q3FY24. EBITDA surged 68% to Rs. 730 crore from Rs. 435 crore, while net profit increased 16% to Rs. 297 crore from Rs. 256 crore last year. EPS grew 16% year-on-year to Rs. 7.47 from Rs. 6.45.

Coforge Ltd expects its proposed acquisition of Encora to be EPS accretive, with the transaction likely to close around Q1FY27. On a pro forma FY27 basis (assuming 15% revenue growth for illustration and $20 million in cost synergies), the combined entity is projected to report revenue of $2.83 billion and EBITDA of $533 million, translating into an improved EBITDA margin of 18.9%, up nearly 90 basis points due to synergy benefits.

EBIT for the combined entity is estimated at $399 million, with profit after tax projected at $283 million, resulting in a PAT margin of 10%. The acquisition assumes an enterprise value of $2.35 billion, with around 20% allocated to customer relationships amortised over 12 years. 

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Coforge Shares Jump 5% After Securing $158 Million Deal with UK-Based Client appeared first on Trade Brains.