Buy Coforge Ltd For Target 2,120 by Prabhudas Liladhar Capital Ltd
Accelerating AI stack to scale production
We attended Coforge’s webinar on Enterprise Autonomy, where management outlined its vision of moving from AI-assisted services to Enterprise Autonomy, marking the continued shift in services delivery model. Management highlighted that while ~2/3 of the company’s clients have adopted agentic AI capabilities, only 5% are currently able to orchestrate autonomy, reflecting gaps in enterprise context, data readiness, security and control/cost. Coforge is addressing these gaps through its integrated Nuuron, AgenticOps, AI-ready data and Momentuum Blue/FDE offerings, enabling clients to move from individual AI use cases towards production-scale autonomous workflows. Management highlighted that clients are increasingly adopting a multimodel architecture, including open-source models (now at ~35% token consumption), as the capability gap between models narrows, creating opportunities around model optimization, token economics, security and governance. Coforge expects AI to expand wallet share through greater consolidation of client workflows, while continuous agent creation, reskilling, retraining and workflow redesign could create a multi-year revenue opportunity as enterprises scale autonomy. As autonomy moves into production, security, guardrails, compliance and human-in-the-loop controls are becoming increasingly important, creating incremental services opportunities and driving continued investment in AI capabilities. Coforge invested US$58mn in AI innovation in FY26 and has built 100+ reusable agent archetypes, while Momentuum Blue (FDE operating unit) currently has ~70–75 FDEs and targets 150 by March 2028, supported by an in-house FDE academy and structured training and shadowing program before deployment. We maintain our BUY rating with a target price of INR 2,120, based on 28x FY28E EPS.
3-layer autonomy enablement suite:
Management presented its 3-layer enterprise autonomy suite comprising of Coforge Nuuron, Mod squads & Momentuum blue to help organizations operationalize AI at scale. Coforge Nuuron serves as the intelligence layer, encompassing the broader intelligence framework and enabling AI capabilities; Mod Squads comprise AI-native delivery bots that combine human expertise with AI agents to drive measurable business outcomes; while Momentuum Blue forms the operating layer housing Coforge’s FDE capabilities.
Closing the autonomy gaps:
Management emphasized that <5% of enterprises can orchestrate unsupervised actions autonomously, identifying resiliency gaps, security gaps and control gaps as the three key gaps hindering enterprise autonomy. To address these gaps, management highlighted that its 28 agents now autonomously execute ~40% of enterprise AI Cloud operations, helping mitigate resiliency risks, while its unified security platform proactively closes ~80% of identified security risks. Management also noted that sovereign AI is approaching an inflection point as AI enters the “metered era,” increasing the need for greater control and governance.
Scaling production through talent & compounding flywheel :
Management articulated two scaling mechanisms that Coforge is invested in. The first is an in-house talent engine with a 12-week academy that trains AI-native engineers into FDEs, with 20–25 member cohorts launched every six weeks; and a flywheel model that captures learnings from client deployments to continuously enhance assets, enabling subsequent pods to deliver solutions faster, cheaper and with greater agentic automation.
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