OFSS Shares Jump Over 5%; Stock Gains 40% In One Month: Why Is This IT Stock Rising?

Shares of Oracle Financial Services Software Ltd (OFSS) surged over 5 per cent in early trade on Monday, April 27, extending their recent rally amid firm market sentiment and strong post-results momentum. The stock was trading at Rs 9,410 on the NSE in morning trade, compared with its previous close of Rs 8,949.

OFSS has delivered around 40 per cent returns over the past one month. The stock had touched its 52-week low of Rs 6,234 on March 17 during the peak of global risk-off sentiment linked to the US-Iran conflict.

Why Are OFSS Shares Rising?

The rally in OFSS came alongside a broad-based rise in Indian equities. The benchmark Nifty 50 was trading over 200 points higher at 24,104 in early trade, while the Nifty IT advanced around 1.6 per cent.

Investor sentiment in the

stock also remained supported by the company’s strong March quarter earnings announced earlier this month.

Strong Q4 Performance

OFSS reported a 38.1 per cent sequential jump in consolidated net profit to Rs 841.7 crore for the January-March 2026 quarter. Revenue rose 5.1 per cent quarter-on-quarter to Rs 2,065.2 crore.

Earnings before interest and tax (EBIT) climbed 29.5 per cent to Rs 1,040.9 crore, while EBIT margin expanded sharply to 51.2 per cent from 41.7 per cent in the previous quarter, indicating better operating leverage and efficiency.

Rs 270 Interim Dividend Announced

The company also approved a second interim dividend of Rs 270 per equity share of face value Rs 5 for FY26. It has fixed May 7, 2026 as the record date, while dividend payment is scheduled for May 21, 2026.

Brokerage View

Brokerage Choice Institutional Equities has reiterated its ‘buy’ rating on OFSS with a target price of Rs 10,890. The brokerage said it remains positive on the company due to improving deal momentum, a favourable high-margin product mix and strong cash generation.

It added that Remaining Performance Obligations (RPO) growth of 9.2 per cent quarter-on-quarter improves medium-term revenue visibility, while recent deal wins, cost efficiency and pricing discipline are supporting margin expansion.

Choice Institutional Equities expects Revenue, EBITDA and PAT CAGR of 10.3 per cent, 12.1 per cent and 13.1 per cent, respectively, over FY26-FY29E. “We remain constructive on OFSS, supported by strengthening deal momentum, a high-margin products mix and robust cash generation,” the brokerage said.

Oracle Financial Services Software Ltd is majority-owned by Oracle Corporation, the US-based software giant.

US-based Oracle recently laid off nearly 30,000 employees worldwide, with about 12,000 staff in India impacted. The layoffs were announced through an early morning email on March 31, informing employees that their roles had been eliminated as part of organisational changes.