Coforge Limited has announced its audited standalone and consolidated financial results for the fiscal year ended March 31, 2026. The Board of Directors approved the financial results during a meeting held on May 05, 2026, with statutory auditors S R Batliboi & Associates LLP issuing an unmodified opinion. CEO Sudhir Singh expressed confidence in the company's trajectory, stating: "FY26 marked another year of exceptional performance for Coforge. We delivered strong YoY growth at 29.2% and expanded EBIT margins materially by 370 bps to 14.4%. With an order executable of $1.75Bn, we enter FY27 with strong momentum and confidence. We expect to deliver robust revenue growth in FY27 and plan to deliver an EBITDA of more than 20.5% on a consolidated basis in FY27."

FY27 Guidance and Management Outlook

Management has outlined detailed guidance for FY27 following the earnings concall. Consolidated EBITDA margins are projected to be in the range of 20.5% to 21%, with standalone EBIT margins targeted at 16.5% to 17% and consolidated EBIT margins at 15.5%. Management expects FY27 to be an exceptional year with robust revenue growth, driven by signed framework agreements and a balanced portfolio across verticals.

The margin expansion is attributed to AI adoption in delivery and functions, general and administrative synergies of 20% to 25% from the Encora acquisition, and the planned closure of a $20 million low-margin India business portfolio. Management expects Q1 FY27 revenue to be flattish quarter-on-quarter due to the discontinuation of the India business, with a fast growth trajectory anticipated from Q2 onward. Free cash flow to PAT is anticipated to be maintained at 100% or more from FY27 onwards, an increase from the previous guidance of 70% to 80%.

Consolidated Financial Performance

For the year ended March 31, 2026, Coforge reported significant improvement across key financial metrics. Consolidated revenue from operations rose to Rs 164,027 million from Rs 120,733 million in the prior year, representing growth of 35.9% in INR terms and 29.2% in USD terms. EBITDA for the year stood at Rs 30,464 million, up 76.9% in INR terms and 68.2% in USD terms, with EBITDA margins expanding by 431 basis points year-on-year. EBIT for the year was Rs 23,645 million, with EBIT margins expanding by 370 basis points to 14.4%. Profit after tax (PAT) attributable to owners for the year stood at Rs 15,557 million ($177.4 Mn), an increase of 91.6% in INR terms and 82.1% in USD terms.

The following table summarises the consolidated full-year financial performance:

For the quarter ended March 31, 2026, Coforge reported revenue from operations of Rs 44.50 billion, compared to Rs 41.88 billion in Q3 FY26 (QoQ). Q4 EBIT stood at Rs 6.96 billion, with EBIT margin at 15.7%, compared to Rs 5.53 billion and 13.1% in Q3 FY26. Q4 net profit came in at Rs 6.1 billion, up from Rs 2.5 billion in Q3 FY26. Q4 EBITDA stood at Rs 9,168 million, up 18.5% QoQ and 56.2% YoY, with EBITDA margins at 20.6%, expanding 232 basis points QoQ.

The following table summarises the Q4 FY26 consolidated P&L performance:

Total comprehensive income for the year was Rs 17,693 million, compared to Rs 9,776 million in the previous year. Cash and cash equivalents at the end of the year stood at Rs 10,936 million ($117 Mn), up from Rs 7,956 million at the start of the year. Net cash inflow from operating activities for the year was Rs 17,917 million, while free cash flow for the year was $135.4 Mn, up 68.4% YoY and representing the strongest annual cash generation reported by the company.

Standalone Financial Performance

On a standalone basis, Coforge reported revenue from operations of Rs 95,725 million for the year ended March 31, 2026, compared to Rs 63,705 million in the prior year. Standalone profit for the year was Rs 13,931 million, against Rs 6,069 million previously. Total income on a standalone basis was Rs 105,018 million, with total expenses of Rs 89,445 million.

Standalone cash and cash equivalents at the end of the year stood at Rs 5,097 million, up from Rs 1,969 million at the beginning of the year. Net cash inflow from operating activities on a standalone basis was Rs 7,907 million, while net cash inflow from investing activities was Rs 4,708 million.

Segment Performance

Segment information for consolidated continuing operations highlights the contribution from different geographies. The Americas segment generated the highest revenue at Rs 93,344 million for the year, followed by Europe, Middle East and Africa (EMEA) at Rs 47,425 million, and the Rest of World (ROW) segment at Rs 23,258 million. For the quarter ended March 31, 2026, the Americas contributed revenue of Rs 25,245 million, EMEA Rs 12,584 million, and ROW Rs 6,675 million. By geography mix, Americas accounted for 56.7% of revenues, EMEA 28.3%, and Rest of World 15.0% in Q4 FY26.

By vertical, Banking and Financial Services contributed 24.9% of revenues, Travel, Transportation and Hospitality 23.4%, Insurance 14.8%, Healthcare & HiTech 11.5%, Government Overseas 7.5%, and Others 17.9%. By service offering, Engineering accounted for 45.1%, Data and Integration 20.9%, Cloud and Infrastructure Management 17.7%, Business Process Management 8.0%, and Intelligent Automation 8.4%.

Order Book and Operational Highlights

Coforge reported Q4 FY26 order intake of $648 million, with five large deals signed during the quarter. Total FY26 order intake stood at $2,262 million. The executable order book over the next twelve months stood at $1.75 billion, reflecting a 16.4% YoY increase. Total headcount stood at 35,777, with a net addition of 436 sequentially over the previous quarter. The LTM attrition rate stood at 10.8%, and utilization (including trainees) was 82.5%. Revenue per headcount on an annual basis stood at $71.8K.

Corporate Developments

Subsequent to the year-end, on April 23, 2026, Coforge acquired 100% of the equity shares of Encora US Holdco, Inc. and Encora Holdings Ltd. for an aggregate purchase consideration of Rs 221,935 million. The acquisition was funded through a share swap of Rs 170,326 million (USD 1,890 million), settled via issuance of 93,796,508 fully paid-up equity shares at an issue price of Rs 1,815.90 per share, and a cash component of Rs 51,609 million (USD 550 million), funded through secured borrowings at an effective interest rate of 4.6% per annum. The combined entity is expected to generate approximately $2.5 billion in revenue, with Encora adding 9,000+ engineers to Coforge's global workforce and strengthening its AI delivery capabilities through the AIVA platform.

The Scheme of Amalgamation of Cigniti Technologies Limited with Coforge was approved by the National Company Law Tribunal (NCLT) and is effective from the appointed date of April 1, 2025. May 16, 2026, has been fixed as the record date to determine the eligibility of Cigniti shareholders to receive equity shares of Coforge in the share exchange ratio of 1:1. During the year, the company recognised exceptional items totalling Rs 2,260 million, comprising a Labour Code impact of Rs 1,148 million on gratuity and leave liabilities, acquisition and integration costs of Rs 628 million related to the Encora acquisition, and legal costs of Rs 494 million (net of insurance recoveries) related to a class action complaint arising from a cybersecurity incident. The dividend proposal has been deferred to the next Board meeting.

AI Strategy and Recognitions

Coforge has positioned itself as an AI-native engineering services leader, with AI embedded across its design, build, and delivery functions. The company's AI assets include 22 purpose-built enterprise-grade AI assets, 110+ pre-built AI agent archetypes, and an AI talent pool of 11,000+ practitioners. During the year, Coforge invested $5.5 million in AI learning and training, covering 290,000+ hours of talent upskilling. The company has received 7 'Leader' recognitions in AI from leading market analysts and over 25 AI recognitions in total.

On the partnerships front, Coforge attained AWS Premier Tier Services Partner Status in the Amazon Web Services Partner Network and won the 2026 ServiceNow Partner Award for Domain Expertise in CRM. The company was recognized by ISG as a Leader in Managed Services and a Leader in Consulting & Transformation Services in the Multi Public Cloud Services 2025 ISG Provider Lens Quadrant Study, and by Everest Group as a Leader and Star Performer in the Duck Creek Services PEAK Matrix® Assessment 2026. Additionally, CEO Sudhir Singh was honored as the "Tech Titan" in the Information Technology category at Business Today India's Best CEO Awards 2026, and Coforge's CodeInsight.AI platform was recognized among the Top 3 winners in the Established Business Category at the 33rd HYSEA Annual Summit & Awards 2026.

Coforge Limited and Cigniti Technologies Limited have completed all regulatory formalities required to make their scheme of amalgamation effective, following the filing of the certified copy of the National Company Law Tribunal (NCLT) Chandigarh Bench order with the Registrar of Companies, Haryana. With this filing, Cigniti Technologies stands amalgamated with Coforge and is dissolved without being wound up, creating a $2.50 billion AI-native engineering services leader. The Appointed Date for the merger remains April 1, 2025, as sanctioned by the NCLT.

Scheme Effectiveness and Next Steps

In a regulatory disclosure dated May 05, 2026, Coforge confirmed that both the Transferor Company (Cigniti Technologies) and the Transferee Company (Coforge) have complied with all conditions specified in Clause 28 of the Scheme. The Board of Directors of Coforge, at its meeting scheduled on May 5, 2026, is set to consider and fix the record date for determining Cigniti shareholders whose equity shares shall stand cancelled and to whom new equity shares of Coforge will be issued in accordance with the swap ratio outlined in the Scheme.

Overwhelming Shareholder Approval

The merger had received exceptional support from all stakeholder classes across both companies prior to NCLT sanction. The voting results demonstrated strong confidence in the strategic combination:

No objections were received from any stakeholder during the approval process, reflecting unanimous confidence in the merger's strategic value.

Share Exchange and Financial Structure

The merger operates under a 1:1 share exchange ratio, where Cigniti shareholders will receive one equity share of Coforge (INR 2 face value) for every one equity share of Cigniti Technologies (INR 10 face value). This ratio was mathematically adjusted from the original 1:5 ratio following Coforge's stock split on March 04, 2025, which subdivided each INR 10 share into five INR 2 shares. The valuation was conducted by registered valuers PwC Business Consulting Services LLP and KPMG Valuation Services LLP, with fairness opinions provided by JM Financial Limited and Axis Capital Limited confirming the exchange ratio's appropriateness.

Regulatory Compliance and Implementation

The NCLT order mandates comprehensive transfer of all assets, liabilities, and obligations from Cigniti to Coforge, effective from the appointed date. All employees of Cigniti will become Coforge employees without service interruption and on terms no less favorable than their current arrangements. The merger received clearances from all regulatory authorities, including SEBI, BSE, and NSE, with no adverse observations reported. Coforge has also committed to assume all tax liabilities of Cigniti Technologies, whether pending, completed, or likely to arise. The Income Tax Department had raised objections regarding outstanding tax demands aggregating to Rs. 28,63,99,207 against Cigniti and Rs. 3,04,77,45,392 against Coforge, with the tribunal's order explicitly preserving the rights of the Income Tax Department to determine tax implications independently, including applicability of General Anti-Avoidance Rules (GAAR).

Strategic Market Positioning and Value Creation

The combined entity creates a $2.50 billion firm with a $2.00 billion enterprise core focused exclusively on AI-led Engineering, Data and Cloud services. This merger strategically positions Coforge to leverage Cigniti's established relationships and expand its healthcare business while strengthening its presence in the Midwest and Western regions of the United States. The successful integration has demonstrated exceptional value creation, with Cigniti signing its first large deal worth $24 million within six months of acquisition and a second deal worth $62 million within nine months.