Coforge Q4 FY26 profit jumps 136% to ₹612 crore

Key takeaway from the March-quarter print

Coforge reported a sharp jump in profitability for the quarter ended March 31, 2026 (Q4 FY26), supported by revenue growth, better operating leverage, and AI-led efficiencies. Consolidated net profit rose to ₹612.3 crore, more than doubling both year-on-year and sequentially. Revenue from operations increased to ₹4,450.4 crore, rising 30% year-on-year and 5.2% quarter-on-quarter. The company also reported stronger order intake, with five large deals contributing to quarterly bookings. Management linked the margin improvement to a mix of cost actions, favourable currency movement, and operating scale. The print comes as investors track how mid-tier IT services firms balance growth with profitability in a mixed demand environment.

Q4 FY26 financials: profit surge, revenue beats estimates

For Q4 FY26, Coforge’s net profit climbed 135.7% to ₹612.3 crore, and rose 144.8% sequentially. Another disclosure in the reported coverage pegged year-on-year profit growth at 134.4% to ₹612 crore, from ₹261 crore a year earlier, reflecting minor rounding across sources. Revenue for the quarter came in at ₹4,450.4 crore, up 30% year-on-year and 5.2% sequentially, and was reported as topping street expectations. In US dollar terms, quarterly revenue was $189.1 million, up 1.7% sequentially, and 2% sequentially in constant currency. Profit before exceptional items and tax stood at ₹678.6 crore, up 27.6% quarter-on-quarter and 72.54% year-on-year. Coforge also reported exceptional items of ₹53.6 crore during the quarter.

Margin story: operating leverage and cost tailwinds

Coforge’s margin expansion was a central feature of the quarter. The company reported Q4 operating margin at 16.6%, expanding 430 basis points year-on-year. It also reported EBIT margin at 15.6% versus 13.1% in the previous quarter, alongside EBIT of ₹696 crore versus ₹554 crore in Q3 FY26. EBITDA rose to ₹916.8 crore, up 18.5% sequentially, with EBITDA margin at 20.6% after expanding 232 basis points quarter-on-quarter. Management attributed margin gains to multiple levers, including SG&A leverage contributing 100 basis points, currency tailwinds of 80 basis points, direct cost reduction of 50 basis points, and lower marketing spends of 40 basis points, among other factors. The company also said the rise in profitability was supported by using AI at scale and operating discipline.

AI-led efficiencies and management commentary

On the post-earnings call, CEO Sudir Singh framed AI as a new source of downstream opportunities for technology services, similar to what cloud adoption created earlier. He said Coforge’s ability to grow in a challenging environment has been driven by increasing wallet share, particularly across key accounts. The company positioned AI-led efficiencies as part of its margin improvement toolkit, alongside inorganic contributions from acquisitions. CFO Saurabh Goel said the margin outlook is also supported by the planned closure of a $10 million low-margin portfolio in the India business. Separately, one report noted that Q4 reported profit also received a one-off boost from reversal of deferred tax liability related to the Cigniti merger. Coforge said normalised PAT for the quarter would have been $17 million, against reported PAT of $17.3 million.

Deal momentum: quarterly bookings and 12-month order book

Coforge reported order intake of $148 million in Q4 FY26, up from $193 million in the previous quarter. The company said the quarter included five large deals, helping lift total bookings. Its executable order book for the next 12 months stood at $1,750 million, representing a 16.4% year-on-year increase. Management said the order book positions the company to enter FY27 with momentum. The combination of bookings and higher revenue conversion remains a key driver for near-term visibility for IT services companies, particularly amid client scrutiny on discretionary spending. Coforge’s disclosures point to continued demand in select accounts and service lines.

FY26 performance: revenue up 35.9%, profit up 91.6%

For the full year FY26, Coforge reported revenue of ₹16,402.7 crore, up 35.9% year-on-year, compared with ₹12,073 crore in FY25. Net profit for FY26 was ₹1,555.7 crore, versus ₹812.1 crore last year, translating to a 91.57% rise. Another disclosed view of the year highlighted dollar revenue of $1.87 billion and PAT of $177.4 million, though Coforge’s statutory reporting is in rupees. Management also pointed to expanded profitability during FY26, stating EBIT margin expanded by 370 basis points to 14.4% for the year. These numbers underscore a year of strong topline expansion, with improving margins through cost actions and operating leverage.

Segment and geography drivers: healthcare, Americas lead

Revenue growth was led by the healthcare and hi-tech vertical, which accounts for 11.5% of Coforge’s revenue and grew 78.4% year-on-year. By geography, the Americas, the company’s largest market, grew 34.6% year-on-year and was cited as a key driver of overall revenue expansion. Europe, Middle East and Africa (EMEA) grew 14.3% year-on-year. Rest of the world grew 49.9%, the highest among regions disclosed. The mix indicates that growth is not uniform across markets, and that the Americas continues to be pivotal for near-term performance.

Encora acquisition and FY27 margin guidance

Coforge’s FY27 margin guidance was framed around the integration impact of Encora. The company guided FY27 operating margins at 15.5% including Encora, and between 16.5% and 17% excluding the acquisition. In December, Coforge agreed to buy AI firm Encora in a $1,350 million deal to strengthen AI capabilities and expand in the US and Latin America, and the deal was completed on April 23. Management also said it plans to deliver EBITDA of more than 20.5% on a consolidated basis in FY27. Brokerage views cited in the coverage differed, with CLSA expecting synergies and Morgan Stanley flagging valuation concerns and potential earnings dilution.

Workforce and integration updates: headcount, attrition, Cigniti record date

Coforge added 436 employees in Q4, taking headcount to 35,777. Attrition eased to 10.8%, down 10 basis points quarter-on-quarter, and was described as among the lowest in the industry. On the Cigniti amalgamation, the board set May 16, 2026, as the record date to determine eligibility of Cigniti shareholders to receive Coforge equity shares. Coforge also disclosed a share exchange ratio of 1:1 under the amalgamation scheme. These items matter for investors tracking integration progress, employee stability, and equity issuance linked to corporate actions.

Market reaction and what investors are watching

Coforge shares closed up about 1.4% on Tuesday ahead of the results announcement, and another report pegged the close at ₹1,168 on the NSE, up 1.42%. The stock has fallen 29.8% since the start of 2026, highlighting a tougher year for the counter despite improved quarterly profitability. Over the past year, the shares have declined more than 22%, slightly underperforming the Nifty IT index, which has slipped over 19% over the same period. Investors are likely to focus on the quality of Q4 earnings given the noted one-off tax-related benefit, along with the sustainability of margin gains as Encora is consolidated. Order intake and the $1,750 million executable order book will also remain key reference points for near-term demand visibility.

Snapshot table: key reported metrics

Conclusion

Coforge’s Q4 FY26 results combined strong year-on-year revenue growth with sharp margin expansion and a sizeable jump in reported profit. The quarter also showed higher deal intake and an expanded 12-month executable order book, adding to near-term visibility. At the same time, disclosures around one-off tax-related impacts and exceptional items provide context to the headline PAT number. The next key markers are FY27 margin delivery under Encora consolidation and execution against the $1,750 million order book. Separately, the May 16, 2026 record date for the Cigniti share swap is a defined upcoming corporate-action milestone.