Coforge Q3 Profit Jumps 16% to ₹297 Crore for FY26

Introduction to Coforge's Q3 Performance

IT services company Coforge Limited announced a robust financial performance for the third quarter of fiscal year 2026, ending December 31, 2025. The company reported a significant 16% year-on-year increase in its consolidated net profit, which stood at ₹296.7 crore. This marks a healthy improvement from the ₹255.9 crore profit recorded in the corresponding quarter of the previous fiscal year. The results underscore the company's sustained growth momentum despite operating in what is traditionally considered a seasonally weak quarter for the IT industry.

Detailed Financial Breakdown

Coforge's revenue from operations witnessed substantial growth, climbing 28.5% to reach ₹4,188.1 crore during the reported quarter. This is a notable increase from the ₹3,258.1 crore in revenue generated in the December 2024 quarter. On a sequential basis, the company posted a strong 5.1% growth, signaling resilient demand for its services. This consistent top-line expansion, coupled with healthy profitability, highlights the company's effective execution and strategic positioning in the market.

Operational Highlights and Business Momentum

The third quarter was marked by strong business development and operational efficiency. Coforge secured six large deals, contributing to a total order intake of USD 593 million. This robust deal-making activity has significantly strengthened the company's future revenue visibility. The executable order book for the next 12 months saw a remarkable 30.4% year-on-year growth, reaching USD 1.72 billion. This healthy pipeline provides a solid foundation for continued growth in the upcoming fiscal years.

Management Commentary and Future Outlook

Sudhir Singh, Chief Executive Officer of Coforge, expressed strong confidence in the company's trajectory. He highlighted the impressive sequential growth in a challenging quarter and the substantial year-on-year increase in the order book as key indicators of sustained momentum. Singh stated that the robust large deals pipeline gives the company confidence in maintaining its growth through both FY26 and FY27. He also emphasized the strategic importance of the integration with Encora, which is expected to create a USD 2 billion core business focused on Data, Cloud, and AI-led engineering, setting the stage for long-term outperformance.

Workforce and Attrition Trends

In a positive sign for operational stability, Coforge's attrition rate declined to 10.9% in Q3 FY26, down from 11.4% in the preceding quarter. A lower attrition rate is a crucial metric in the IT services industry, as it indicates better employee satisfaction and reduces the costs associated with recruitment and training. During the quarter, the company's total headcount also increased by 445 employees, bringing the global workforce to 35,341 people. This expansion reflects the company's growth and its ability to attract and retain talent.

Key Financial Metrics Summary

To provide a clear overview of the quarterly performance, the key financial figures are summarized below.

Market Context and Strategic Positioning

Coforge's strong performance comes at a time when the broader IT sector is navigating global macroeconomic uncertainties. The company's focus on high-growth areas such as artificial intelligence, cloud services, and data analytics appears to be paying off. The strategic acquisition of Encora is a key part of this strategy, aimed at bolstering its capabilities in these domains and expanding its global footprint. This forward-looking approach allows Coforge to differentiate itself from competitors and capture emerging market opportunities, positioning it for resilient growth even in a challenging environment.

Conclusion

Coforge's third-quarter results for FY26 demonstrate a company on a solid growth path. With a 16% rise in profit, a 28.5% increase in revenue, a strong order book, and declining attrition, the company has delivered a well-rounded performance. The management's optimistic outlook, backed by a robust deal pipeline and strategic initiatives, suggests that Coforge is well-equipped to continue its growth trajectory and deliver value to its stakeholders in the coming years.