Summary:
Coforge shares crashed 9% after Chairman Om Prakash Bhatt resigned following concerns raised during an internal audit. The company clarified that the board evaluation matters have no impact on financial statements or guidance, while investors assess the governance development.
Coforge shares came under heavy selling pressure on Wednesday, September 9, 2026, after non-executive independent director and Chairperson Om Prakash Bhatt resigned from the company’s board with immediate effect. The stock fell as much as 9% to ₹1,780 on the BSE and was trading around ₹1,797, down 7.8%, in early trade. This marked the stock’s biggest single-day decline since April 2025.
Why Coforge Stock Fell After the Event
Bhatt’s resignation followed concerns raised during an internal audit conducted as part of Coforge’s Q2 FY26 internal audit plan. The audit reviewed, among other matters, the process followed for the Board Evaluation Exercise under Bhatt’s guidance and the resulting Board Evaluation Report (BER) presented by him to the board.
The review identified concerns over how the BER was handled and presented, including that certain material information relating to the BER and Bhatt’s performance was not fully disclosed to the board when the report was presented. The board subsequently communicated its concerns to Bhatt and sought an explanation. While Bhatt provided his response and the board had begun evaluating it, no final decision had been taken on the matters when he resigned.
Bhatt said he had acted in good faith but considered it appropriate to resign given the circumstances. He stated that continuing on the board amid a disagreement over the characterisation of his good-faith actions in the board evaluation process would not be conducive to the effective functioning of the board. He also identified the above matters as the material reasons for his resignation and confirmed there were no other material reasons.
Coforge Clarifies Audit Does Not Affect Financials or Guidance
Coforge clarified that the board evaluation exercise conducted in March and April 2026 for the previous year does not pertain to the company’s financial statements. The company also said the matters have no bearing on its financial guidance, making the clarification to avoid any misunderstanding regarding the board evaluation exercise.
Bhatt, who previously served as chairman of State Bank of India, became Coforge’s chairman in 2024. His term was originally scheduled to continue until April 2027. Following his resignation, he has also stepped down from all company committees with immediate effect. The board has appointed non-executive independent director Vivek Sharma as interim chairperson until January 31, 2027.
Strong Stock Performance Before the Fall
The sharp decline comes after a strong rally in Coforge shares. The stock had gained more than 100% in less than six months from its 52-week low in March and touched a fresh 52-week high last week. Over a longer period, the stock has delivered returns of 72% in three years and 86% in five years.
Coforge Q1 FY27 Results Remain Strong
The resignation comes despite strong operating performance. Coforge reported a 63% year-on-year increase in Q1 FY27 net profit to ₹518.6 crore, while revenue rose nearly 50% year-on-year to ₹5,528 crore.
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