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The market expects much less from Coforge than it has delivered before.
At today’s share price, buyers are assuming Coforge grows about 14% a year, forever. Over the last ten years it actually grew about 28% a year. That is a big step down from its own record. Either the market can see a problem that the published accounts do not show yet, or it is expecting a slowdown that has not happened.
- How it is valued: Discounted cash flow.
- What the price assumes: 14% growth, against 28% the model takes from its own record.
- Ten-year record: Between FY2018 and FY2026, Coforge's revenue went from ₹2,991 crore to ₹16,403 crore — it compounded at about 24% a year over 8 years.
- Biggest swing factor: Deal wins. Main risk: Integration.
01From NIIT Technologies to Coforge
Coforge was known as NIIT Technologies until 2020, when private-equity owner Baring renamed it. It provides IT services to banks, insurers and travel and transport companies, mainly in the US and Europe.
It has grown through large deal wins and acquisitions, including Cigniti Technologies, a software-testing firm, in 2024.
02What the market is assuming
Work backwards from today's share price and you can see what buyers are quietly taking for granted. Here is the growth that price implies for Coforge, next to what the model assumes from the company's own record.
The further apart these two numbers are, the bigger the bet a buyer at today's price is making.
03Coforge's record, in plain numbers
Between FY2018 and FY2026, Coforge's revenue went from ₹2,991 crore to ₹16,403 crore — it compounded at about 24% a year over 8 years. Net profit grew from ₹309 crore to ₹1,745 crore, about 24% a year — roughly in step with revenue. In FY2026 it kept 10.6% of revenue as net profit — against a low of 7.8% in FY2025 and a high of 11.5% in FY2019. The latest year added 36.1% to revenue, well ahead of its own long-run pace.
Revenue and earnings per share in ₹, return on equity and leverage as ratios — all from the filed statements.
Revenue and net profit by year (₹ crore)
| Year | Revenue | Net profit | Margin |
|---|---|---|---|
| FY2018 | 2,991 | 309 | 10.3% |
| FY2019 | 3,676 | 422 | 11.5% |
| FY2020 | 4,184 | 468 | 11.2% |
| FY2021 | 4,663 | 466 | 10.0% |
| FY2022 | 6,432 | 715 | 11.1% |
| FY2023 | 8,015 | 745 | 9.3% |
| FY2024 | 9,179 | 836 | 9.1% |
| FY2025 | 12,051 | 936 | 7.8% |
| FY2026 | 16,403 | 1,745 | 10.6% |
04How Coforge gets valued — and why
Discounted cash flowThis business is valued on the cash it is expected to generate, discounted back at its cost of capital — with growth taken from its own ten-year record rather than from guidance.
05What decides Coforge's value
Deal wins
Large contracts sustain fast growth.
Acquisition integration
Bought companies need to grow profitably.
Margins
Holding margins while growing through deals is the key test.
Industry focus
Insurance and travel clients drive demand.
06What could go wrong
- Integration. Acquisitions can dilute margins.
- Client concentration. A few large clients matter a lot.
- Slowing growth. A slowdown matters more for a company priced for growth.
07What the full Coforge valuation shows
Sign in free to see the complete Coforge valuation
- ✓Fair value per share — from a ten-year discounted cash flow, every step shown
- ✓The Workbench — change revenue growth, the discount rate or terminal growth and watch Coforge's value move
- ✓Bull, base and bear cases — and exactly which assumptions move between them
- ✓Peer comparison — against Persistent Systems, Infosys and TCS
- ✓Downloadable report — the full write-up, yours to keep
08Compare Coforge with peers
The same valuation, run side by side.
Coforge vs Persistent SystemsThe two fastest-growing mid-cap IT names, side by side.→Coforge vs InfosysA mid-cap challenger against a large-cap incumbent.→Coforge vs Tata Consultancy ServicesGrowth-led mid cap against the scale leader.→09Questions people ask about Coforge
What was Coforge called before?
NIIT Technologies, renamed Coforge in 2020.
Why did Coforge buy Cigniti?
To add software-testing capabilities and clients, in a deal completed in 2024.
Coforge or Persistent — which is better value?
The two fastest-growing mid-sized IT names, compared side by side on their own page.
Is Coforge overvalued?
At ₹2,028 the market is pricing in roughly 14% sustained growth, against the ~28% its own record supports. That is less than it has delivered — on these numbers the market is asking the business for less than its own record, which usually means it doubts the record repeats.
What is the intrinsic value of Coforge?
It is computed from the filed financial statements using the method that fits this business (discounted cash flow), with every assumption shown alongside the result. The per-share figure and the full working are in the report.