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Coforge shares rose nearly 3% after the IT firm announced a five-year, $230+ million deal with a major European client.
What's the deal: Coforge will use AI-powered automation, low-code/no-code platforms and AI-driven software development to overhaul the client's business operations. The aim is to improve decision-making, reduce manual work and deliver services faster.
Why it matters: this is one of the biggest AI-led transformation deals Coforge has won in Europe. It also shows that companies are no longer just experimenting with AI, they're spending hundreds of millions of dollars to rebuild how their businesses operate.
Big theme: investors are increasingly betting on IT firms with strong AI, cloud and digital engineering capabilities. Between 2021 and 2025, Persistent Systems' market capitalisation grew from ₹375 billion to ₹936 billion, while Coforge's rose from ₹359 billion to ₹557 billion.
As businesses shift from traditional outsourcing to AI-led transformation, companies are winning larger, outcome-based contracts.
Nasscom estimates AI-related revenues reached $10-12 billion in FY26, highlighting how AI is becoming a major growth driver for India's IT sector.
