Tech Mahindra, OFSS, Persistent: NIFTY IT jumps 2%; two triggers behind the rally

The buying interest in IT stocks could be attributed to better earnings by mid-tier IT firm Coforge and a rally in tech stocks on Wall Street in the overnight trade.

How individual stocks are faring

At the time of writing this article, Coforge was up nearly 8% on the NSE, while Persistent Systems was trading 3.21% higher. Tech Mahindra shares were up 1.3%. Oracle Financial Services Software (OFSS) was up 0.10%.

Coforge earnings

Coforge reported a multifold surge in consolidated net profit to ₹612.3 crore for January-March FY26, driven by a major one-time tax benefit and strong operational growth.

The company had posted a net profit (attributable to owners of the company) of ₹261.2 crore in the year-ago period.

Revenue from operations grew 30% to ₹4,450.4 crore in Q4 FY26, from ₹3,422.2 crore logged a year ago.

On a quarter-on-quarter (QoQ) basis, profit more than doubled, and revenue grew 5.2% during the quarter under review.

Reported Q4 PAT reflects the reversal of deferred tax liability due to the Cigniti merger, the company said in a regulatory filing.

“Q4 FY26 includes acquisition and integration-related expenses for Encora of ₹501 million and legal expenses related to the cybersecurity case of ₹35 million. ETR for the quarter was impacted by the release of deferred tax liabilities aggregating ₹1,810 million, recognised in the P&L pursuant to the merger of Cigniti into Coforge Ltd,” Coforge said.

Coforge completed the acquisition of Silicon Valley-based AI firm Encora for an enterprise value of $2.5 billion in April 2026.

It has also completed the acquisition of Cigniti Technologies. The company added 436 employees in the March 2026 quarter, bringing the total headcount to 35,777.

For the full fiscal year of FY26, Coforge’s net profit came in at ₹1,555.7 crore, a 91.5% increase from ₹812.1 crore in FY25, primarily due to gains from the sale of a stake in Coforge Advantage Go in May 2025.

“With an order executable of $1.75 billion, we enter FY27 with strong momentum and confidence. We expect to deliver robust revenue growth in FY27 and plan to deliver an EBITDA of more than 20.5% on a consolidated basis in FY27,” said Sudhir Singh, Chief Executive Officer and Executive Director, Coforge.

Reacting to the numbers, shares of Coforge rallied as much as 10% to ₹1,285.60 apiece on the NSE.

Tech stocks on Wall Street rally

Technology stocks on Wall Street rallied strongly on Tuesday, May 5, powering the Nasdaq to record highs, led by sharp gains in semiconductor and megacap names.

Chipmakers such as Intel surged as much as 13%, while Advanced Micro Devices gained around 4%, and Micron Technology also saw strong buying interest amid continued optimism around AI-driven demand.

Among other movers, Apple rose about 2.5%, Pinterest jumped nearly 7% on strong earnings, and Dell Technologies extended gains, reflecting broad-based strength across the tech space.

The rally was supported by easing oil prices and improving investor sentiment, which helped risk appetite return after recent volatility.