Coforge shares hit a day’s high of ₹1,680 on the NSE on Tuesday, rising over 10% after strong Q1 results and a broader IT sector rally.

The stock climbed as much as 10% in early trade, making it the top gainer on the Nifty IT index, which itself jumped over 3.5% during the session.

TCS, Persistent Systems, LTIMindtree, Infosys, Tech Mahindra and HCLTech all traded firmly higher too, so this wasn’t a Coforge only story.

Part of the move came down to global investors rotating out of AI linked chip stocks in South Korea, Japan and Taiwan, which sold off sharply, and into Indian IT companies instead, since these firms earn most of their revenue from services rather than AI hardware or semiconductors.

But Coforge had its own reasons to rally too. Revenue for the quarter came in at ₹5,527.7 crore, up 49.2% year on year, though a large chunk of that growth traces back to the Encora acquisition, which closed on May 1 and alone added over $100 million to the topline.

Strip that out, and organic growth was a much smaller 1.1% in constant currency terms, improving to 5.2% once two planned business exits are factored in. Profitability held up well despite the acquisition.

EBITDA rose 73.6% to ₹1,123.3 crore, with margin expanding to 20.3%. Net profit from continuing operations more than doubled to ₹518.6 crore, though it did dip 15.3% sequentially due to higher interest costs tied to the acquisition financing.

Investors also took comfort from the order book. Coforge’s 12 month executable order pipeline grew 44.2% year on year to $2.23 billion, backed by fresh order wins of $691 million during the quarter. The board also declared an interim dividend of ₹4 per share.

By 14:51 pm, the stock is trading around ₹1,685 on the NSE, still up over 10.25% for the day.

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