Coforge Shares Drop 6% Amid Q1 Earnings: Should You Buy the Dip?

Coforge's consolidated revenue rose 56.5% to ₹3,688.6 crore in Q1FY26, while total order intake for the quarter was $507 million. However, the company's share price dropped 6% to ₹1,723.50, with over 3 million shares traded on the NSE and BSE. The decline may be attributed to the broader market volatility. Despite this, Coforge's revenue growth indicates strong performance, making it a potential buying opportunity for investors.

Coforge Ltd., an IT services provider, reported its Q1FY26 earnings, showcasing a significant rise in consolidated revenue while experiencing a decline in share price. The company's revenue grew by 56.5% to ₹3,688.6 crore, compared to ₹2,357.1 crore in the first quarter of FY25 [2]. This growth was driven by a total order intake of $507 million during the quarter.

Despite the robust revenue performance, Coforge's share price dropped by 6% to ₹1,723.50 on July 24, 2025. Over 3 million shares were traded on the NSE and BSE, indicating substantial market activity. The selloff may be attributed to broader market volatility rather than specific issues with Coforge's performance.

The company's net profit rose by 21.5% to ₹317 crore, slightly missing analysts' estimates. Revenue growth of 8.2% to ₹3,689 crore was also reported, with analysts estimating revenue at ₹3,723 crore. Despite the contraction in margin from 11.8% to 11.3%, Coforge's financial results demonstrate strong performance in the quarter.

Coforge declared a dividend of ₹4 per share, providing additional value to shareholders. The company's share price has fallen significantly in the past year, declining by 80.86% in the last 12 months and 70.07% year-to-date. This makes Coforge an attractive potential buying opportunity for investors seeking undervalued stocks.

While the broader market volatility may have contributed to the share price decline, Coforge's revenue growth and financial performance indicate a strong underlying business. Investors should closely monitor the company's future earnings and market conditions to make informed decisions.

References:
[1] https://www.ndtvprofit.com/quarterly-earnings/coforge-q1-results-profit-rises-22-misses-estimates-dividend-declared
[2] https://www.business-standard.com/markets/news/coforge-shares-drop-6-post-q1-earnings-should-you-buy-the-dip-125072400311_1.html