Coforge (COFORGE) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue reached INR 41,881 million ($478.2 million), up 28.5% YoY and 5.1% QoQ, driven by large deal wins and strong key account performance.

• Six large deals were signed in Q3, with the next 12-month signed order book up 30% YoY to a record $1.72 billion; nine new clients were added.

• Free cash flow for the quarter was $45.7 million, FCF to normalized PAT at 110%, well above guidance.

• Global headcount increased to 35,341, with attrition at 10.9%, among the lowest in the industry.

• Board approved a $2.35 billion acquisition of Encora, expected to accelerate AI-led engineering and data services growth.

Financial highlights

• Q3 revenue: INR 41,881 million, up from INR 32,581 million in Q3 FY25, with EBIT margin at 13.4%, up 191 bps YoY, down 60 bps QoQ.

• PAT for Q3 FY26 was INR 2,967 million, up from INR 2,559 million in Q3 FY25; excluding exceptional items, PAT was INR 3,641 million, up 71.2% YoY.

• EPS for Q3 (excluding exceptional items): INR 10.9; reported EPS: INR 7.5; diluted EPS: INR 7.38.

• Adjusted EBITDA for Q3 FY26 was INR 7,302 million, up from INR 4,895 million in Q3 FY25.

• Gross margin at 32.9%, down 114 bps QoQ and 52 bps YoY.

Outlook and guidance

• On track to achieve 14% EBIT margin for FY26, with Q4 EBIT expected at 15%.

• High revenue visibility with 94% repeat business and a strong executable order book.

• Board approved major Encora acquisition, to be financed via share swap and $550 million term loan; no EPS dilution expected in FY27 post-acquisition.

• Management anticipates a strong FY26 close and exceptional FY27, supported by robust deal momentum.