Street View- Brokerages flag AI-driven revenue deflation at India's Coforge

Coforge

18/09/2026 05:43

** India's Coforge COFO.NS on Thursday outlined its enterprise AI strategy, saying it is shifting from effort-based services to outcome-based work as AI agents take on a greater share of tasks
** Shares of co fall as much as 2.16% to 1,754.20 rupees
     
AI-LED DEFLATION, SHIFT TO OUTCOME-BASED PRICING
** HSBC ("Buy" TP:2,000 rupees) says AI will drive deflation in existing services as agents take over work currently performed by humans, but expects savings to fund new AI and legacy-modernisation projects
** Kotak (Buy", TP:2,000 rupees) says implementation of agentic AI will lead to revenue deflation in existing services, though it expects clients to reinvest savings into new AI projects
** Nomura ("Buy", PT:1,860 rupees) says cheaper AI models are putting pressure on effort-based pricing, increasing importance of enterprise-specific and outcome-based services
** JM Financial("Add",TP: 1,980 rupees) says Coforge's AI strategy could decouple revenue growth from headcount as it shifts from traditional wage-based delivery to reusable intellectual property and outcome-based pricing

(Reporting by Surbhi Misra in Bengaluru)
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