Coforge-Cigniti merger: Shares of Coforge Ltd have been on a roll lately, since the announcement of quarterly earnings. The stock has surged nearly 18 per cent in the last 3 sessions, since the announcement of results. Beside a strong quarterly show, the company has announced the record date and swap ratio for shareholders for the amalgamation of Cigniti Technologies Ltd into it.

Cigniti stands amalgamated with Coforge and the equity shareholders of Cigniti are entitled to receive equity shares of Coforge in the share exchange ratio 1:1, said Coforge in the exchange filing. It is hereby informed that May 16, 2026, has been fixed as the Record Date for determining such eligibility of Cigniti shareholders, it added.
 

What will happen to Cigniti Tech shareholders

Shareholders of the Cigniti Technologies will get one share of Coforge for every share of the company held by them as on the record date. Thus shares of Cigniti Technologies and Coforge have been moving in Tandem since the announcement of amalgamation and its record date.

The company stands amalgamated with the transferee company (Coforge) and dissolved without being wound up, said Cigniti Technologies in an exchange filing. It means that the company will not be traded on the exchange post the record date and only Coforge shares will be available to trade. The company also cancelled its quarterly results meeting, which were included in Coforge earnings itself.
 

Coforge Q4 results

Coforges reported a 145 per cent jump in the net profit on a quarter-on-quarter (QoQ) basis to Rs 612.3 crore, while revenue surged 30 per cent on a year-on-year (YoY) basis to Rs 4,450.4 crore for the March 2026 quarter. Its Ebitda margins improved to 16.6 per cent, while order intake stood at $648 million with 5 large deals. It had a total contract value of $1.75 billion.
 

Coforge and Cigniti Tech share price

Coforge shares jumped as much as 6 per cent to Rs 1,359.40 on Friday, commanding a market capitalization of more than Rs 45,000 crore. The stock has surged 18 per cent since its Q4 earnings on May 5 from Rs 1,152 levels. Despite this rise, it is still 32 per cent below its 52-week high at Rs 1,994, hit in July 2025.

On the other hand, shares of Cigniti Technologies jumped nearly 6 per cent to Rs 1,352.85 on Friday, with its market capitalization nearing Rs 3,700 crore mark. The stock has soared nearly 18 per cent from its price around Rs 1,150-1,155 on May 05, since the announcement of Coforge results.
 

What analysts said on Coforge-Cigniti Tech merger

A deferred tax liability was reversed due to the Cigniti merger following the effective implementation of the amalgamation scheme in FY26, said ICICI Securities. "Deferred tax balances on the merged entity were re-measured, resulting in a reversal of a Rs 181 crore deferred tax liability, which was credited to the provision for tax in Q4FY26.

FY26 had one extra quarter of Cigniti as it was consolidated from 2QFY25, said BoB Capital Markets. "Our estimate is that Coforge delivered organic growth of 25 per cent in FY26 with a very large part of it coming from execution of the Sabre deal and cross sell to Cigniti’s clients which were only buying Testing services from it," it added.

The Cigniti Technologies merger has been implemented. The effective tax rate for the quarter was negative 7 per cent due to a one-time, non-cash reversal of a deferred tax liability (Rs 181 crore) related to the Cigniti merger, said Axis Direct.

Cigniti integration has delivered strong operational outcomes. Top two Cigniti clients have scaled up significantly, expanding from a combined $25– 30 million run-rate to about $75 million in revenue, said Elara Capital.

"Encora is expected to become a key growth driver in the hitech vertical, while past acquisitions such as Cigniti have demonstrated strong cross-sell success and margin improvement (Ebitda improving from 19 per cent), reinforcing confidence in the company’s acquisition-led scaling strategy," said ICICIDirect.

Management highlighted that the acquisition of a minority stake in Cigniti is underway, with share allotment expected shortly, which will reduce minority interest going forward. While this will increase reported PAT attributable to shareholders, it will also lead to equity dilution, said PL Capital.
 

Coforge target price

Brokerages remain largely positive on Coforge, with most maintaining ‘buy’ or equivalent ratings despite varied target prices. PL Capital has the highest target price on the stock at Rs 2,020. ICICI Securities and Axis Securities have assigned ‘buy’ ratings with target prices of Rs 1,430 and Rs 1,690, respectively. ICICIDirect also recommended a ‘buy’ with a target price of Rs 1,540.

On the other hand, Elara Capital has an ‘accumulate’ rating on Coforge with a target price of Rs 1,380, while JM Financial has given an ‘add’ rating with a target price of Rs 1,330. Meanwhile, BoB Capital Markets and IDBI Capital have maintained ‘hold’ ratings on the stock, both with target prices of Rs 1,300.