Coforge FY26: Revenue +29.2%, EBIT margin at 14.4%

A strong close to FY26 for Coforge

Coforge reported a sharp improvement in scale and profitability for the fiscal year ended March 31, 2026, supported by a large order book and what it described as AI-led delivery efficiencies. In USD terms, revenue grew 29.2% year-on-year to $1.87 billion, while the company also reported the full-year revenue at ₹164,207 million. Profitability strengthened, with EBIT margin expanding by 370 basis points to 14.4%. Net profit for FY26 rose 82% year-on-year to $177.4 million. The company said it is entering FY27 with an executable order book of $1.75 billion, providing near-term execution visibility. Management also indicated an intent to take EBITDA margin above 20.5% on a consolidated basis in FY27.

FY26 revenue growth and scale in INR terms

For FY26, Coforge reported revenue of ₹164,207 million (also stated as $1,870 million), representing 35.9% growth in INR terms and 29.2% growth in USD terms. The company framed the year as a continuation of its growth run, describing it as the ninth consecutive year of growth. While the article does not detail segment-wise contributions for the full year, it links performance to large deal wins and improved execution. The company also highlighted the role of AI-led efficiencies in supporting delivery and margins. For investors, the core takeaway from the FY26 headline numbers is that revenue acceleration was paired with a material step-up in operating profitability.

Margin expansion led the profitability story

Coforge reported that EBIT margin for FY26 expanded by 370 bps to 14.4%. The article attributes margin improvement to operating leverage and AI-driven delivery efficiencies, and also references lower ESOP costs and favourable forex movement as supporting factors in a quarterly context. Separately, management commentary in the article flags a historical 100-150 bps margin impact from annual wage hikes, while suggesting other levers could offset part of that pressure. The stated approach was to prioritise growth while maintaining at least a 14% EBIT level once achieved.

Net profit surge and full-year EBITDA

Net profit (PAT) for FY26 rose 82% year-on-year to $177.4 million. The company also reported EBITDA for FY26 at ₹30,464 million (also stated as $147 million), with EBITDA up 68.2% in USD terms and 76.9% in INR terms. While an FY26 EBITDA margin is not explicitly provided in the article, the company’s commentary focuses on further margin progression in FY27. The combination of higher revenue and sharp profitability gains suggests stronger operational throughput versus the prior year.

Q4 FY26: strongest quarter, record EBIT margin

The March quarter was described as the strongest in the company’s history. Q4 revenue was reported at ₹44,504 million (₹4,450.4 crore) and $189.1 million, with a fresh order intake of $148 million. EBIT margin in Q4 reached an all-time high of 16.6%, up 231 bps sequentially. EBITDA for the quarter rose 18.5% quarter-on-quarter to ₹9,168 million (also stated as $100.8 million), with an EBITDA margin of 20.6%, up 232 bps quarter-on-quarter. Q4 EBIT was reported at ₹7,368 million (also stated as $11 million). PAT for Q4 was ₹6,123 million (also stated as $17.3 million), up 144.8% quarter-on-quarter in INR terms.

Q3 and Q2: deal wins, order visibility, and margin progression

In Q3 FY26, revenue reached ₹41,881 million (also stated as $178.2 million), up 28.5% year-on-year and 5.1% quarter-on-quarter. The company signed six large deals in Q3, and added nine new clients. The next 12-month signed order book was reported at a record $1.72 billion, up 30% year-on-year.

For Q2 FY26 (ended September 30, 2025), the company reported revenue of ₹39,857 million, with USD revenue stated at $162.10 million. EBIT was ₹5,563 million with an EBIT margin of 14.00%. PAT was reported at ₹3,758 million, up 86% year-on-year. The company reported five large deals in Q2 and order intake of $114 million, alongside a 12-month executable order book of $1.63 billion, up 26.7% year-on-year.

Order book strength and what it signals

Coforge ended FY26 with an executable order book of $1.75 billion. In addition, the article references a next 12-month signed order book of $1.72 billion in Q3, and $1.63 billion in Q2. While these measures are reported at different points in time and described with slightly different labels, they collectively point to continued momentum in large-deal signings through FY26. The Q4 fresh order intake of $148 million adds another data point on the demand environment and the company’s sales conversion.

Key numbers at a glance

FY27 focus: margin target and execution priorities

A central forward marker in the article is management’s plan to deliver an EBITDA margin of more than 20.5% on a consolidated basis in FY27. The company links the margin pathway to AI-led efficiencies, and prior commentary in the article notes that wage hikes can create a 100-150 bps headwind, implying that the net outcome will depend on how efficiently Coforge offsets cost pressures through operating levers. The company has also highlighted internal choices around balancing growth and profitability, suggesting it does not want margin expansion to come at the expense of revenue momentum.

Conclusion

Coforge’s FY26 numbers show a year where growth and profitability improved in tandem, supported by a rising order book and a record Q4 margin outcome. The company’s near-term narrative now shifts to execution against the $1.75 billion order book and delivery of its stated FY27 EBITDA margin ambition of more than 20.5%, alongside maintaining the 14%+ EBIT profile it established in FY26.