Coforge (COFORGE) Q4 25/26 earnings summary

Executive summary

• Achieved 29.2% revenue growth in USD for FY26, with record profitability, scale, and strong performance across all key industry units and top client accounts.

• EBIT margin improved by 370 bps YoY, with Q4 EBIT margin at 16.6% versus 12.3% last year, delivering the highest-ever quarterly profitability.

• Signed 21 large deals in FY26, including a $150M+ UK public sector framework, and ended with a record $1.75B executable order book, up 16.4% YoY.

• Completed integration of Encora and Cigniti, driving cross-sell, margin expansion, and platform growth.

• AI-driven transformation is central, with significant investments in AI talent, proprietary platforms, and hybrid delivery models, positioning the firm as a leader in AI-native engineering services.

Financial highlights

• FY26 revenue reached $1,870.3M, up 29.2% YoY; EBIT was $269.6M, up 73.7% YoY, with margin at 14.4%.

• EBITDA for FY26 was $347.4M (+68.2% YoY), margin 18.6%; PAT was $177.4M (+82.1% YoY); EPS rose 88.8% YoY.

• Free cash flow for FY26 was $135.4M (+68.4% YoY), with Q4 FCF at $73.7M (+80% YoY); net cash at $117M despite dividend payouts.

• Q4 FY26 revenue was $489.1M (+21.2% YoY), EBIT $81.0M (+63.7% YoY), and PAT $67.3M (+118.5% YoY).

• Q4 sequential CC revenue growth was 2%.

Outlook and guidance

• FY27 EBITDA margin guidance: 20.5%-21% consolidated; EBIT margin: 16.5%-17% standalone, 15.5% consolidated.

• FCF to PAT expected at 100%+ from FY27, up from prior 70%-80% guidance.

• Revenue growth expected to remain robust, with Q1 flattish due to discontinuation of low-margin India business, followed by strong growth from Q2.

• AI market opportunity projected to grow to $800B in five years, with the firm targeting leadership in this space.

• Continued investment in AI, talent, and vertical-specific agentic workflows.