Coforge Q4 results: Brokerages see 70% profit rise

What to track as results near

Coforge Ltd is expected to report a sharp year-on-year jump in March-quarter profit, supported by strong growth in net sales, even as sequential growth is seen moderating. Brokerages cited in market notes are pencilling in a 60-70% YoY surge in net profit, alongside a 29-30% YoY rise in net sales. On the operating side, dollar revenue is expected to rise 1.1-1.5% sequentially. EBIT margin is seen expanding 150-160 basis points quarter-on-quarter (QoQ), with one report pegging Q4 margin at 15%. The company’s commentary on demand conditions and vertical performance is also expected to be a key input for investors.

Stock moves ahead of the announcement

Ahead of the results and a potential dividend announcement, Coforge shares were trading at ₹1,161.15, up 0.79%. Separately, in the company’s earlier Q4 FY25 result context, Coforge shares were cited closing at ₹7,501 on May 5, up ₹119 or 1.61% for the day, after opening at ₹7,420 and moving between ₹7,595 and ₹7,400. Another market update noted the stock rose 6.7% to an intraday high of ₹7,999, and was trading around ₹7,616, up 1.59% from the previous close of ₹7,496.5. The dataset provided contains multiple price points from different dates and contexts, so investors typically align price references with the specific reporting period and corporate actions.

MOFSL: Growth slows as travel faces uncertainties

Motilal Oswal Financial Services (MOFSL) expects 1.5% QoQ revenue growth in constant currency (CC) terms, which it described as a meaningful deceleration from recent quarters. The brokerage flagged that the travel vertical could be impacted by ongoing war-related concerns, with some engagements potentially facing delays. This matters for Coforge because the travel segment is one of the company’s key operating areas referenced in the preview notes. The brokerage view suggests near-term project timing, rather than a broad-based deterioration, may influence quarterly prints.

Elara: Project deferrals weigh on sequential growth

Elara’s note also points to softer sequential performance. It expects 1.1% QoQ growth for the quarter, which it said would be weaker than Coforge’s historical growth rates. Elara added that some projects have been pushed to the next quarter, which it expects to drag growth in the reported period. Even with the sequential moderation, Elara still expects strong YoY expansion in both revenue and profit.

Nomura: Margins, Encora acquisition, and demand commentary

Nomura India said the market’s focus would be on several operational and strategic updates. These include commentary on the recent Encora acquisition, the ramp-up of a recently won large deal in the travel vertical, and the demand environment in the banking vertical. Nomura also highlighted other monitorables such as large deal wins, the impact of AI and the Middle East war on business, and client discretionary spending trends. On profitability, Nomura expects EBIT margin to improve by 160 bps to 15%, citing cost efficiency projects.

Margin setup: Wage hikes behind, but watch one-offs

One brokerage note in the input expects margins at 15%, up 160 bps QoQ, stating that wage-hike headwinds are now behind the company. The same note cautioned that some one-offs may impact margins during the quarter. With several brokerages converging on a 150-160 bps QoQ margin expansion, the composition of the improvement will be important, particularly how much comes from structural cost actions versus temporary items.

Broker estimates: Profit and revenue expectations

The following table summarises brokerage expectations explicitly mentioned in the provided text.

What Q4 FY25 showed: Growth, order intake, and dividend

In an earlier quarter’s results snapshot included in the input, Coforge reported Q4 FY25 consolidated net profit of ₹261 crore, up 16.5% YoY from ₹224 crore, and up 21% sequentially. Revenue from operations rose 47% YoY to ₹3,410 crore from ₹2,318 crore, with 4.6% sequential growth. FY25 net profit was reported at ₹812 crore versus ₹808 crore in FY24, while annual revenue rose 33.7% to ₹12,051 crore from ₹9,009 crore. The company also disclosed an order intake of $1.1 billion in Q4 FY25, including a $1.56 billion total contract value (TCV) deal. The board announced an interim dividend of ₹19 per share, with a record date of 12 May 2025.

Dividend track record highlighted in previews

Dividend expectations have also been part of the run-up narrative. Coforge announced ₹4 per share dividend each in January, October 2025 and July 2025, and an interim dividend of ₹3.80 per share in May 2025. For the past two financial years, Coforge declared ₹76 per share each in total dividends, as stated in the provided text. Separately, another disclosure in the dataset said the board recommended an interim dividend of ₹4 per share, with a record date of January 31, 2026. With these references on record, the market is likely to watch any update alongside the March-quarter results announcement.

Why this result matters for investors

For investors, this results season combines three moving parts seen in the provided inputs: (1) a strong YoY base for profit and sales expectations, (2) a sequential growth moderation in dollar revenue and CC terms, and (3) a margin rebound that brokerages attribute to cost actions and the fading impact of wage hikes. The company’s commentary on travel demand sensitivity to geopolitical risks and the pace of project conversions will be important, given multiple notes cite potential delays. Updates around Encora, large-deal ramp-ups, and banking demand are also in focus because they can influence growth visibility and execution timelines.

Conclusion

Coforge heads into its March-quarter print with brokerages expecting strong YoY profit and revenue growth, modest sequential dollar revenue gains, and a 150-160 bps QoQ margin expansion towards 15%. Alongside the headline numbers, investors will closely track updates on travel and banking demand, cost-efficiency execution, and the Encora acquisition, as well as any dividend decision announced with the results.