Cigniti Technologies Limited , a leading player in digital assurance and engineering services, has reported strong financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Revenue and Profitability Surge

The company's consolidated revenue for Q2 FY26 reached ₹5,673.00 million, marking a substantial increase of 25% compared to ₹4,992.00 million in the same quarter of the previous year. On a sequential basis, revenue grew by 6.2% from ₹5,342.00 million in Q1 FY26.

Cigniti Technologies' profitability also saw impressive gains:

The company's Earnings Before Interest and Taxes (EBIT) improved to ₹997.00 million in Q2 FY26, up from ₹884.00 million in the previous quarter. This resulted in an EBIT margin expansion from 16.55% to 17.57%.

Net profit for the quarter stood at ₹826.00 million, representing a significant year-on-year growth of 56.1% from ₹529.00 million in Q2 FY25. Sequentially, net profit increased by 25.3% from ₹659.00 million in Q1 FY26.

Half-Yearly Performance

For the first half of FY26, Cigniti Technologies reported:

• Consolidated revenue of ₹11,015.00 million, up 13.8% year-on-year
• Net profit of ₹1,485.00 million, a substantial increase of 134.2% compared to the same period last year

Management Changes

In a separate announcement, Cigniti Technologies informed that Mr. Krishnan Venkatachary, the current Chief Financial Officer, will be superannuating, with his last working day scheduled for October 27, 2025. The company has appointed Mr. Ashish Arora as the new Chief Financial Officer, effective October 28, 2025.

Mr. Arora brings over 22 years of experience in finance and is a Chartered Accountant. He has previously served as Global Finance Controller and Senior Vice President – Finance at Coforge Limited since April 2020.

Market Outlook

The strong financial performance and strategic management changes position Cigniti Technologies well in the competitive digital assurance and engineering services market. The company's ability to grow revenue and improve profitability margins indicates robust demand for its services and effective operational management.

As the digital transformation trend continues across industries, Cigniti Technologies' expertise in software testing and quality assurance services is likely to remain in high demand. The company's focus on expanding its service offerings and global presence may contribute to sustained growth in the coming quarters.

The National Company Law Tribunal (NCLT) Chandigarh Bench has issued directions for the proposed merger between Cigniti Technologies Limited and Coforge Limited, marking a significant step in the consolidation process of these two IT services companies.

Key Developments

• The NCLT has ordered the convening of meetings for equity shareholders and unsecured creditors of both Cigniti Technologies and Coforge to consider and approve the merger scheme.
• The tribunal has dispensed with the requirement for a secured creditors meeting of Cigniti Technologies, as the company has no secured creditors.
• Meetings are to be held physically, through video conferencing, or in a hybrid mode, as decided by the appointed Chairperson.

Stakeholder Details

Merger Scheme Highlights

• Appointed Date: April 1, 2025
• Objective: Create synergies in AI-led assurance and IT solutions
• Strategic Goals:
  • Strengthen market presence across industries and regions
  • Focus on expanding in the US market
  • Establish Coforge as a preferred digital transformation partner

Expected Benefits

1. Digital Transformation Empowerment: The merger aims to create strategic advantages in AI-led assurance and IT solutions.
2. Growth Acceleration: The combined entity is expected to create three scaled-up verticals – Retail, Technology, and Healthcare.
3. Enhanced Customer Approach: A broader service portfolio is anticipated to cater to customers across India and overseas.
4. Operational Efficiency: The merger is expected to lead to pooling of resources, best practices, and cross-functional learnings.
5. Simplified Corporate Structure: The amalgamation aims to streamline operations, reducing administrative and compliance-related costs.
6. Improved Financial Management: Better cash flow management and utilization of balances for growth initiatives are anticipated.

Next Steps

1. The appointed Chairperson, Mr. LN Gupta, will set the date, time, and venue for the meetings in consultation with the companies.
2. Notices will be sent to all stakeholders at least one month before the meeting date.
3. An advertisement about the meetings will be published in Business Standard (English) and Jansatta (Hindi).
4. The Chairperson will file a report on the meeting results within seven working days of the meetings' conclusion.

The NCLT has emphasized strict compliance with all directions in accordance with applicable laws. This merger, if approved, could potentially reshape the landscape of IT and digital assurance services in India and globally.