Coforge shares drop 6% post Q1 earnings;should you buy the dip?

Coforge share price today: Shares of IT services provider, Coforge, slipped over 6 per cent on Thursday, July 24, 2025, hitting an intraday low of ₹1,723.50 per share.

At 9:40 AM, Coforge shares were trading at ₹1,745.60, down by 5.63 per cent on the National Stock Exchange. In comparison, NSE Nifty was trading at 25,185.90 level, down by just 34 points or 0.13 per cent. At the time of writing this report, around 3.08 million shares had changed hands on the counter, cumulatively, on the NSE and BSE.

The selloff on the counter came after the company announced its results for the first quarter of financial year 2025-2026 (Q1FY26).

Coforge Q1FY26 earnings

The IT company reported a strong rise of 138 per cent in its profit after tax (PAT) figure to ₹317.4 crore during the quarter ended June 30, 2025, from ₹133.1 crore recorded in the corresponding quarter of the previous fiscal year. Coforge's consolidated revenue figure advanced 56.5 per cent to ₹3,688.6 crore in Q1FY26 as against ₹2,357.1 crore recorded in the first quarter of FY25.

The total order intake for the quarter under review stood at $507 million. Large deals gained momentum as the IT company inked 5 such deals across North America, UK and the Asia-Pacific (APAC) region. That apart, the company's executable order book over the next twelve months stood at $1.55 billion, marking a 46.9 per cent year-on-year (Y-o-Y) rise. The company's earnings before interest, taxes, depreciation and amortisation (Ebitda) figure stood at $77.3 million, up 13.6 per cent quarter-on-quarter (Q-o-Q) and 50.1 per cent Y-o-Y. Ebitda margins also rose 61 basis points Q-o-Q to 17.5 per cent.

"We remain committed to sustaining an execution intensity that is uniquely our own and to turning in the ninth consecutive year of sustained and robust growth. Our industry is pivoting and AI is the biggest transformation lever of our times. Coforge is leading from the front with our Quasar AI Marketplace, AgentSphere library, and real-world deployments, executing at scale and making impact across sectors where we have hyperspecialisation," said Sudhir Singh, chief executive officer and executive director, Coforge.  Check List of Q1 results today

Time to buy the dip?

According to D-Street analysts, Coforge’s strong rally during the April–June quarter prompted investors to book profits following the release of its Q1FY26 earnings.  "Despite reporting a triple-digit jump in profits, the stock declined as investors chose to book profits after Q1 play. While the company’s outlook remains stable, long-term investors might consider the current drop a good opportunity to buy the dip, but ideally in a staggered manner. The ₹1,600 level is seen as a key support and could serve as a crucial entry point for those looking to accumulate the stock," said Kranthi Bathini, equity strategy at WealthMills Securities.

Ravi Singh, SVP-retail research at Religare Broking, advised investors to adopt a 'sell on rise' approach as the stock is moving below its 21-day moving average signalling weakness.  "On technical charts, the stock has formed a double bottom pattern in daily and weekly time frames with top considered at ₹2,000. For now, stock is likely to face selling on every rise with strong support at ₹1,710, while upside hurdles remains near ₹1,850. Traders are advised to consider 'sell on rise' strategy in this stock and investors are recommended to exit the position or place strict stop loss below," he said.