Coforge Share Price Jumps Over 8% After Q4 FY26 Results; Revenue Up 29.2%, EBIT Margin at 14.4%, Order Book Reaches $1.75 Billion

Coforge reported strong year-on-year growth for the fourth quarter of FY26, alongside a material improvement in profitability and a strengthened order pipeline as it scaled AI-led engagements across sectors.

Revenue grew 29.2 per cent year-on-year in Q4 FY26, while EBIT margins expanded by 370 basis points to 14.4 per cent. Order intake during the quarter stood at USD 648 million, including five large deals. The executable Order Book for the next twelve months rose 16.4 per cent year-on-year to USD 1.75 billion, providing enhanced visibility entering FY27.

‘We delivered strong YoY growth at 29.2 per cent and expanded EBIT margins materially by 370 bps to 14.4 per cent. With an order executable of USD 1.75Bn, 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 per cent on a consolidated basis in FY27.’ Sudhir Singh, Chief Executive Officer and Executive Director, Coforge Ltd.

Growth during the quarter was broad-based across verticals. Travel, Transportation and Hospitality (TTH) expanded 59.2 per cent year-on-year, Healthcare & HiTech grew 78.4 per cent, and Government (outside India) rose 31.3 per cent. Insurance increased 14.5 per cent, while Banking and Financial Services (BFS) grew 5.5 per cent.

Across service lines, Engineering revenue rose 32.3 per cent year-on-year and Business Process Management (BPM) increased 33.7 per cent. Cloud and Infrastructure Management Services (CIMS) grew 37.7 per cent, Intelligent Automation advanced 23.7 per cent, and Data and Integration expanded 21.2 per cent.

Geographically, the Americas delivered 34.6 per cent year-on-year growth, EMEA rose 14.3 per cent, and Rest of World increased 49.9 per cent.

Coforge highlighted accelerating momentum in artificial intelligence-led engagements across industries. During the quarter, the company reported increased AI client deployments, including real-time conversational AI assistants for call centres, AI-powered model validation engines in BFS, AI-driven underwriting automation in insurance, GenAI-based contract intelligence platforms in travel, AI-enabled engineering platforms in HiTech, and AI-driven medical writing assistants for healthcare clients.

The company stated that AI initiatives are contributing to both revenue acceleration and measurable productivity gains. It is embedding AI across software development lifecycle processes and internal operations. Reported productivity improvements ranged from 25–35 per cent and 40–60 per cent in specific areas, while modernisation timelines were up to 10 times faster and certain migration use cases were completed nearly five times faster. Internally, AI-enabled systems reduced response time for employee support queries by 30–40 per cent, cut recruitment screening costs by around 30 per cent, and lowered manual effort in finance processes by 40–60 per cent.

Client metrics reflected continued traction. Repeat business increased to 95.5 per cent in Q4 FY26 from 93.5 per cent a year earlier. However, client concentration also rose, with the top five clients accounting for 21.8 per cent of revenue compared with 18.3 per cent in Q4 FY25. The top ten clients contributed 31.4 per cent versus 27.9 per cent in the prior-year quarter.

Headcount at the end of the quarter stood at 35,777, reflecting a net sequential addition of 436 employees. The last twelve months attrition rate was 10.8 per cent.

During the quarter, Coforge attained AWS Premier Tier Services Partner status in the Amazon Web Services Partner Network and received the 2026 ServiceNow Partner Award for Domain Expertise in CRM. The company was also recognised by ISG as a Leader in Managed Services and Consulting & Transformation Services in the ‘Multi Public Cloud Services 2025 ISG Provider Lens Quadrant Study,’ and by Everest Group as a Leader and Star Performer in the ‘Duck Creek Services PEAK Matrix® AssesSMEnt 2026.’

Coforge said its AI-led strategy has been further reinforced by the acquisition of Encora, which expands its presence in HiTech and Healthcare, strengthens AI-native product engineering capabilities, and enhances onshore and nearshore delivery. The combined entity has approximately USD 2.5 billion in revenue and a combined EBIT margin of 14 per cent.

Coforge Limited is a digital services and solutions provider focused on Banking & Financial Services, Insurance, Government, and Travel, Transport & Hospitality. The company partners with platforms including Microsoft, AWS, Google, Salesforce, Pegasystems, ServiceNow, and Appian, and operates an AI ecosystem branded ‘Quasar’ integrating more than 23 Large Language Models across over 200 industry use cases. As at March 31, 2025, the Group had 49 subsidiaries operating across the Americas, EMEA, and other global markets.

Disclaimer: The article is for informational purposes only and not investment advice.