Coforge’s Stock Rockets After Announcing Split and Expansion Moves
Things got seriously exciting for Coforge Ltd on March 5, 2025. Its stock shot up by nearly 10%, hitting ₹7,924.50 at one point and pulling the IT player’s market cap close to ₹53,000 crore. This surge wasn’t just random investor enthusiasm—there’s a lot happening behind the scenes that’s reshaping the company.
The big trigger? The Coforge board approved a 1:5 stock split. In simple terms, every share worth ₹10 will be split into five shares, each carrying a face value of ₹2. For regular folks looking to invest, this move means the shares become much cheaper per piece, letting more people join the party. The company’s calling it their first-ever stock split, and it’s a clear sign they want to broaden their shareholder base and up the trading activity around their stock.
But the excitement doesn’t end there. Coforge isn’t sitting still. Alongside the split, the board announced two bold acquisitions that position the company for bigger things in IT services.
Targeted Acquisitions for a Sharper Edge
The first big news: Coforge is acquiring Rythmos Inc., a US-based expert in data and cloud solutions mainly for the airline sector. The deal has Coforge putting $30 million on the table upfront, with up to $18.7 million more if the acquired business hits strict performance goals over 2025 and 2026. This isn’t just about expanding for the sake of it—the travel and data space has been exploding, especially with digital transformation sweeping airlines and airports.
The second deal adds an Australian flavor. Coforge is snapping up TMLabs, a ServiceNow implementation partner, for AUD 20 million (about ₹112 crore). There’s more on the table if TMLabs performs well through 2026 and 2027, thanks to earnout clauses. ServiceNow is huge for workflow automation, and this move should bulk up Coforge’s cloud and service management chops.
Earlier, Coforge had already signaled its ambitions with a $1.56 billion, 13-year contract with Sabre Technologies. The huge deal is set to power AI-driven travel solutions and new product enhancements, setting the company apart in the fast-evolving travel IT market. Sabre’s a big deal in airline technology, so landing this contract is a major reputation boost.
Not all of Coforge’s recent headlines are about expansion, though. Their numbers have everyone paying attention. In the third quarter of FY25, revenue jumped a whopping 42% year-on-year to ₹3,318 crore. Net profit went up by 10%, crossing ₹256 crore. That kind of growth isn’t common in the sector, and it’s a clear indicator that Coforge’s strategy is driving results.
Analysts say this combination of savvy deals and strong financials explains why investors are piling in. These moves let Coforge beef up its expertise in data analytics, cloud engineering, and service management while also making its stock far more attractive to everyday investors. It’s a rare mix of long-term strategy and short-term results—with no sign of slowing down just yet.
