Coforge Ltd Shares Surge 8% After Strong Q4 FY26 Earnings Beat Estimates

The shares of Coforge Ltd jumped more than 8% in early trade today as the company saw an outstanding Q4 FY26 quarter and beat expectations handsomely. Coforge Ltd shares were trading at ₹1,263.60 with a gain of 8.11%, buoyed by earnings growth, higher margins, and healthy order inflow. Even after the impressive rise in the share price, Coforge Ltd is still 15% lower from its price a year ago.

Profit Jumps 145%, Beats Street Estimates

The consolidated net profit witnessed by Coforge in the Q4 FY26 stood at ₹612 crore, registering an impressive 145% growth on a year-on-year basis from ₹250 crore. Additionally, the profit surpassed the expectations.

In terms of quarterly growth rate, the profit grew 145% from the previous quarter as well. The profit witnessed an excellent growth, backed by superior operations and higher margins.

Revenue Growth Remains Strong Across Metrics

Revenue for the March quarter came in at ₹4,450 crore, showing a growth of 30% on a year-over-year basis. Revenue grew by 28.7% in constant currency terms and 21.2% in USD terms.

The quarterly growth rate for revenue was 5% on a quarter-on-quarter basis from ₹4,232 crore. The constant currency terms showed a growth of 2.0%, while in USD terms, it showed 1.7%.

Margins Expand Sharply, Operational Strength Improves

EBITDA was ₹876 crore for Q4FY26, registering a quarterly growth of 21% from ₹724 crore. EBITDA margin also witnessed a substantial improvement of 19.6% compared to 17.1% last quarter.

The EBITDA margin consensus estimate for the street was 14.6%, so it came as a pleasant surprise. On an annual basis, EBIT margin increased by 370 basis points to 14.4%.

Order Book Strengthens, Deal Wins Accelerate

Coforge posted an impressive order booking of $648 million for the quarter with five sizeable orders. The total value of the executable order backlog for the upcoming 12 months witnessed an increase of 16.4% to reach $1.75 billion. 

The management emphasized that Coforge was off to a good start with FY27 owing to regular order inflows and healthy order pipeline.

Workforce and Attrition Trends

The employee base was 35,777 for the company, with an increase of 436 employees from the previous quarter. Employee attrition for the past twelve months was under control at 10.8%.

FY26 Performance Reflects Exceptional Growth

The consolidated performance for FY26 by Coforge is that the total revenue was recorded at ₹16,420.7 crore, which grew by 35.9% YoY in Indian Rupee terms and 29.2% YoY in US Dollar terms. The EBITDA was recorded at ₹3,046.4 crore, increasing 76.9% YoY.

This resulted in a margin increase of 431 basis points. The EBIT was recorded at ₹2,364.5 crore, which is an increase of 82.7%.

Outlook Remains Strong for FY27

Sudhir Singh, the CEO, said that FY26 was one of those years where there had been excellent performance in the form of 29.2% growth and margin improvement. In FY27, the company aims to achieve high levels of revenue growth along with an EBITDA margin of above 20.5%.