Coforge Q1 FY26 Results: $507 Mn Deal Wins, PAT Surges 138% YoY, Interim Dividend Declared

New Delhi, July 24, 2025: Coforge Limited (NSE: COFORGE), a prominent global digital services and solutions provider, has unveiled a stellar performance for the first quarter of the financial year 2026 (Q1 FY26). The company reported significant double-digit year-on-year growth across its key financial metrics, including revenue and profit, alongside an impressive surge in its order book. Demonstrating its commitment to shareholder returns, Coforge also declared an interim dividend of ₹4 per share.

Strong Financial Momentum

Coforge delivered robust financial results for the quarter ended 30th June 2025. The company reported a revenue of ₹3,689 crore (US$ 442 million). This represents a healthy 9.6% sequential growth in USD terms and a remarkable 54.5% year-on-year (YoY) growth. This topline expansion was complemented by a strong improvement in operating profitability.

Key financial highlights are as follows:

• Revenue (INR): ₹3,689 crore, reflecting an 8.2% quarter-on-quarter (QoQ) growth and a substantial 56.5% YoY growth.
• Revenue (USD): US$442 million, with a 9.6% QoQ increase and a 54.5% YoY surge.
• EBITDA (USD): US$77.3 million, showcasing a 13.6% QoQ growth and a 50.1% YoY increase.
• EBITDA Margin: Achieved 17.5%, expanding by 61 basis points QoQ, highlighting improved operational efficiency.
• Profit After Tax (PAT) (INR): ₹317 crore, marking a robust 21.5% QoQ increase and an exceptional 138.4% YoY surge.
• P/E Ratio (TTM) is 76.16 against an industry P/E of 26.84.

In recognition of this strong performance, the Board of Directors has recommended an interim dividend of ₹4 per share, with the record date for this payout set for 31st July 2025.

Order Book & Deal Pipeline

Coforge’s growth trajectory is strongly supported by its robust order book and successful deal acquisitions. During Q1 FY26, the company secured a significant $507 million in TCV (Total Contract Value). This included the signing of five large deals spanning crucial geographic markets across North America, the UK, and the Asia-Pacific (APAC) region.

The company’s future revenue visibility remains exceptionally strong, with the executable order book for the next 12 months surging to $1.55 billion. This reflects an impressive 46.9% year-on-year jump, underscoring sustained client demand and Coforge’s ability to secure substantial new business.

Operational and Strategic Highlights

Coforge continued to demonstrate operational excellence during the quarter. The headcount increased to 34,187, with a net addition of 1,164 professionals in Q1. Furthermore, the company maintained an impressively low attrition rate of 11.3%, which is among the best in the IT services industry, indicating strong employee retention and a healthy work environment.

A key strategic highlight was Coforge’s continued leadership in Artificial Intelligence. The company launched Forge-X, an advanced AI-powered delivery platform designed to enhance efficiency and effectiveness. Additionally, it introduced AgentSphere, a comprehensive library comprising over 100 foundational AI agents. These agents are specifically developed for targeted industry applications in high-growth sectors such as travel, BFSI (Banking, Financial Services, and Insurance), and healthcare, signifying Coforge’s commitment to real-world AI deployments.

Recognitions and Partnerships

Coforge’s industry standing was further solidified through various recognitions and partnerships during the quarter. The company was acknowledged as a ‘Leader’ in several influential analyst reports, including those from Avasant and ISG RadarView.

Strategic collaborations included a partnership with Zscaler for secure cloud access through the Microsoft Azure Marketplace. Coforge also attained Microsoft Solution Partner status across all six capability areas, highlighting its broad expertise within the Microsoft ecosystem. The company’s commitment to best practices was recognised through multiple accolades, including “Sustainable Organization 2025” and “Breakthrough Partner of the Year” awards.

CEO Commentary

Sudhir Singh, CEO and Executive Director, Coforge Ltd., expressed strong confidence in the company’s trajectory. “The 9.6% sequential dollar growth in Q1, a next twelve-month signed order book which is 46% higher YoY, and a pathway to 14% EBIT in FY’26 are all pointers to what we believe will be an exceptional fiscal,” he stated. Mr. Singh further added, “We are leading from the front with our Quasar AI Marketplace and real-world AI deployments across sectors where we have hyper-specialisation.”

Share Performance Recap

On July 23, shares of Coforge closed 0.47% or ₹8.70 at ₹1,849.70. The shares made an intraday high of ₹1,869.10 and a low of ₹1,839. It remains to be seen at what price the shares open and how they perform throughout the day.

Insights For Investors

Coforge’s Q1 FY26 results reflect a strong growth trajectory, both operationally and financially. A 138% YoY jump in PAT and over $500 million in new deal wins underline the company’s ability to convert demand into profitable growth. The robust 54.5% YoY revenue surge in USD terms and expanded EBITDA margins further enhance earnings quality. Importantly, a 46.9% increase in its 12-month executable order book ($1.55 billion) offers solid revenue visibility going forward.

With continued leadership in AI, low attrition, and strategic global partnerships, Coforge is positioning itself as a digital transformation leader. Investors may view this performance as a strong signal of long-term value creation, especially in the high-growth mid-cap IT space. However, valuations and sectoral headwinds should be monitored for near-term positioning.

About Coforge

Coforge Limited is a global digital services and solutions provider dedicated to transforming businesses into intelligent, high-growth enterprises by leveraging cutting-edge technologies like AI, cloud, data, and automation. The company operates across 23 countries with 30 global delivery centres and is listed on both the NSE and BSE.

REF:

https://nsearchives.nseindia.com/corporate/COFORGE_23072025215045_outcomeJuly23.pdf

https://nsearchives.nseindia.com/corporate/COFORGE_24072025000723_PR_Intimation.pdf

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