Coforge (COFORGE) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue grew 56.5% year-over-year and 9.6% quarter-over-quarter in USD, reaching $442.4M, with strong performance in Travel, Healthcare, Retail, and High-tech verticals.

• Signed five large deals in Q1, with order book for next 12 months at a record $1.55B, up 46.9% year-over-year.

• Global headcount increased by 1,164 to 34,187, maintaining one of the lowest attrition rates in the industry at 11.3%.

• Board approved unaudited Q1 FY26 results, declared Rs. 4 interim dividend, and approved acquisition of Artexmind S.A.

• Continued focus on AI-driven solutions, digital transformation, and hyper-specialization in select industries.

Financial highlights

• Q1 revenue reached $442.4M (Rs. 36,886 mn), up 8% quarter-on-quarter and 51.5% year-on-year in constant currency.

• EBITDA margin improved to 17.5%, up 61 bps quarter-over-quarter; EBIT for the quarter was $58.3M, up 9.2% sequentially.

• PAT for the quarter was INR 3,174 mn, up 21.5% quarter-over-quarter and 138.4% year-over-year; consolidated net profit: Rs. 3,564 mn.

• EPS reported at INR 9.5 per share, including a one-time gain; normalized EPS at INR 9 per share.

• Operating cash flow for the quarter was $43.8M, 115% of reported PAT.

Outlook and guidance

• Targeting 14% EBIT margin for FY26, with margin expansion expected in Q2 and Q3.

• High order book visibility with $1.55B executable in the next 12 months; 91% of business from repeat clients.

• CapEx expected to revert to 2-3% of revenue after recent data center investments.

• Amalgamation scheme with Cigniti progressing, with regulatory and shareholder approvals pending.

• Confident in robust growth for the rest of the year, with H2 expected to be stronger than H1.