Coforge Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Sep 19
- 2 min read
by KarNivesh | 19 September, 2025
Coforge Limited: Short Overview
Coforge Limited, formerly NIIT Technologies, has grown into one of India’s fastest-rising IT services companies with a market capitalization of ₹60,110 crore. The company has consistently delivered strong performance, marked by 33.8% revenue growth in FY25, a 46% year-over-year expansion in its order book, and a strategic focus on AI-led digital transformation through platforms like Quasar and AgentSphere. Coforge recently crossed the milestone of ₹8,300 crore ($1 billion) in annual revenue, highlighting its strong execution and global presence.
Company Evolution and Strategic Moves
Founded in 1992 and rebranded in 2020, Coforge operates across 21 countries with 30 global delivery centers. Its growth has been fueled by acquisitions such as SLK Global (₹918 crore), Cigniti Technologies (54% stake in 2024), and recent takeovers of Rythmos (US) and TMLabs (Australia) in 2025. A landmark achievement was securing a ₹129,480 crore ($1.56 billion) 13-year contract with Sabre Corporation, providing AI-enabled travel solutions—nearly matching its annual revenue and securing visibility until 2038.
Business Model and Service Mix
Coforge derives 27.7% of revenue from Banking & Financial Services, 22.9% from Travel & Hospitality, 15.5% from Insurance, 26.7% from sectors like Healthcare and Manufacturing, and 7.2% from Government. Service offerings are led by Engineering (45.9%), followed by Data & Integration, Cloud, Intelligent Automation, and BPM. Geographically, Americas contribute 56.7%, EMEA 29.8%, and Asia-Pacific 13.5%.
Technology and Growth Strategy
Coforge’s AI-first approach is central to its future. Platforms like Quasar (integrating 23 LLMs) and AgentSphere (over 100 AI agents) are being deployed across industries. Its Forge-X delivery platform and Microsoft partnership (with 10,000+ developers trained on GitHub Copilot) enhance productivity, showing up to 30% coding efficiency gains.
Looking ahead, Coforge targets ₹16,600 crore ($2 billion) revenue by FY27, driven by healthcare vertical expansion, Asia-Pacific growth (especially Japan), and investments in AI, quantum computing, and cybersecurity (₹50 million).
Risks
The biggest risks are its high valuation, client concentration (notably the Sabre deal), travel sector exposure, and talent challenges. Currency fluctuations, regulatory changes, and competition from larger IT players like TCS and Infosys also remain concerns.
Conclusion
Coforge has emerged as a high-growth mid-tier IT leader with a diversified business model, strong financials, and innovative AI-led offerings. While valuation is steep, its growth trajectory, order book strength, and future-ready strategy make it a compelling but high-risk investment in India’s technology growth story.
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