IT Shares Trade Ex-Split Post First-Ever 1:5 Split

On Wednesday, the Coforge shares were trading at Rs. 1,718 per share, which is trading 1.06 percent higher from the previous closing price on NSE. The shares are trading ex-split on June 4, 2025, following its board’s approval of a 1:5 stock split, where each existing share with a face value of Rs. 10 was subdivided into five shares with a face value of Rs. 2 each. The board decided on this split ratio to improve liquidity and price affordability for investors, and the record date for eligibility was set for June 4, 2025, making June 3 the last day for investors to purchase shares to qualify for the share split. This move marks Coforge’s first-ever stock split.

A stock split offers several benefits to investors. Primarily, reducing the price per share, making the stock appear more affordable and thus attracts a broader pool of investors, especially retail participants. It can lead to higher trading volumes, improving liquidity and narrowing bid-ask spreads, which benefits all shareholders by making it easier to buy and sell shares. While the overall value of an investor’s holding remains unchanged immediately after the split, the perception of affordability and increased liquidity can sometimes drive up demand and, consequently, the share price over time, which is subject to the company’s financial performance.

The recent results of Q4FY25 showcase the company’s growth. They reported a consolidated net profit of Rs. 307 crore for Q4 FY25, up 34.06% year-over-year. Revenue from operations surged 47.1 percent year-on-year to Rs. 3,410 crore. For the full fiscal year FY25, revenue climbed 31.28 percent to Rs. 12,051 crore, while net profit was at Rs. 936 crore.

The company’s performance was driven by strong deal momentum, securing five large deals worth $2.1 billion in Q4 alone. Their order executable book for the next twelve months jumped 47.7 percent year-on-year, reaching $1.5 billion, highlighting high revenue visibility.

Coforge’s management remains optimistic about the future. CEO Sudhir Singh described FY25 as an exceptional year and expects FY26 to be equally strong. The company is targeting further EBITDA margin improvements in the coming year. The company expects $2 billion in revenue by FY27. Strategic acquisitions, such as the purchase of Rythmos Inc. in the US, help to improve Coforge’s capabilities in big data, cloud, and AI or ML solutions, as well as strengthen its ServiceNow practice, particularly in the financial services and travel industries. The company has also launched a GenAI Center of Excellence in partnership with ServiceNow, focusing on the development of Agentic AI solutions.