India's Coforge beats second-quarter profit view on improved client spending

Mphasis

24/10/2025 12:54

Oct 24 (Reuters) - Indian IT services firm Coforge COFO.NS reported a better-than-expected 86% surge in second-quarter profit as client spending picked up across the sector.

Consolidated net profit rose to 3.76 billion rupees in the quarter ended Sept. 30, above analysts' average expectation of 3.71 billion rupees, according to data compiled by LSEG.

Revenue rose 31.7% to 39.86 billion rupees ($453.50 million), largely in line with analysts' estimate of 40.33 billion rupees.

However, Coforge's deal wins for the quarter were marginally lower at $514 million from $516 million last year.

KEY CONTEXT

Coforge's results come as larger rivals Tata Consultancy Services TCS.NS, Infosys INFY.NS and Wipro WIPR.NS beat estimates for quarterly revenue and expect to see improving demand in the second half of the fiscal year.

Strong deal wins and clients' growing willingness to invest in AI projects are seen as key drivers for the industry.

Analysts also attributed realisations from Coforge's $1.5 billion deal with U.S. client Sabre as a significant factor.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth(%)
Profit growth(%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Coforge
COFO.NS
35.97
19.38
23.88
42.63
Buy
32
0.93
0.89
Persistent Systems
PERS.NS
44.45
29.93
19.01
23.90
Hold
36
0.97
0.61
Mphasis
MBFL.NS
25.20
15.94
10.87
12.27
Buy
35
0.91
2.12
Tech Mahindra
TEML.NS
21.62
14.16
5.88
24.21
Hold
42
0.93
3.11

* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JULY-SEPT STOCK PERFORMANCE

($1 = 87.8950 Indian rupees)

COFO https://tmsnrt.rs/43glxee

 (Reporting by Aleef Jahan and Sai Ishwarbharath B; Editing by Ronojoy Mazumdar and Janane Venkatraman)

 ((aleefjahan.cs@thomsonreuters.com))