Financial Performance Highlights
Coforge Limited reported exceptional FY26 results with consolidated revenue of ₹164,027 million (USD 1.87 billion), representing 35.9% YoY growth in INR terms and 29.2% in USD terms. The company achieved EBIT margin expansion of 370 basis points to 14.4% and profit after tax growth of 91.6% YoY to ₹15,557 million. Free cash flow surged 68.4% to USD 135.4 million, demonstrating strong operational efficiency.
Strategic Acquisitions and Mergers
The company completed two major strategic transactions: the acquisition of Encora through a share swap arrangement valued at ₹17,032.60 crore (allotting 93,796,508 equity shares at ₹1,815.91 per share) and the amalgamation with Cigniti Technologies effective April 1, 2025, approved by NCLT with a 1:1 share exchange ratio. These moves significantly expanded Coforge's AI engineering capabilities, with the combined entity expected to derive over USD 2 billion in revenue from AI-led engineering, Data and Cloud services.
Corporate Actions and Capital Structure
Coforge implemented a 1:5 stock split reducing face value from ₹10 to ₹2 per share effective June 4, 2025, to enhance liquidity and retail participation. The board recommended interim dividends aggregating ₹15.8 per equity share (post-split), involving cash outflow of ₹5,291 million. CRISIL upgraded the company's long-term issuer rating to 'CRISIL AA+/Stable' from 'CRISIL AA/Positive', reflecting strengthened financial position.
Operational and Business Metrics
The company maintained industry-low attrition of 10.8% while growing its workforce to 35,777 professionals. Coforge secured 21 large deals during FY26 with an executable order book of $1.75 billion (16.4% YoY increase), providing strong visibility for FY27. Revenue mix showed Americas contributing 56.9%, EMEA 28.9%, and Rest of World 14.2%, with Banking and Financial Services being the largest vertical at 26.5%.
Risk Management and Financial Position
The company disclosed significant interest rate and foreign currency risk exposures, with sensitivity analyses showing potential profit impacts from rate changes. Trade receivables grew to INR 39.7 billion while borrowings reduced to INR 4.0 billion from INR 7.0 billion. Cash equivalents stood at INR 10.9 billion, providing strong liquidity. The company maintained 99.87% shares in demat form and disclosed ₹42.9 million in unclaimed dividends scheduled for IEPF transfer.
Corporate Governance and Compliance
Coforge maintained robust corporate governance with a 9-member board comprising 55.56% independent directors. The company complied with all regulatory requirements, with no material penalties from SEBI or other authorities. Key appointments included John Robert Speight as Executive Director and Vivek Sharma as Independent Director. The 34th Annual General Meeting is scheduled for August 24, 2026, with e-voting available from August 21-23, 2026.
ESG Initiatives and Outlook
The company implemented significant environmental initiatives including transitioning its Greater Noida campus to 100% renewable electricity and water conservation programs. CSR projects included establishing public libraries and partnerships with IIT (BHU) for AI research. Coforge enters FY27 with strong visibility supported by the $1.75 billion executable order book and expects continued growth momentum from the expanded capabilities post-acquisitions.