Coforge Reports Robust Q2 Performance: Net Profit Surges 18.6% QoQ

2 min read     Updated on 27 Oct 2025, 05:45 AM
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Reviewed by
Ashish ThakurScanX News Team
Overview

Coforge Limited announced robust Q2 FY2025-26 financial results. Net profit increased by 19.36% to ₹425.40 crore, while revenue grew 6.53% to ₹4,024.20 crore quarter-on-quarter. EBIT rose 32.65% to ₹732.50 crore, and EBITDA margin expanded by 274 bps to 14.07%. Year-over-year, net profit surged 82.18%, revenue increased 30.63%, and EBITDA grew 66.06%. The company's performance exceeded analyst expectations in most areas, demonstrating strong growth and operational efficiency.

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*this image is generated using AI for illustrative purposes only.

Coforge Limited , a global digital services and solutions provider, has announced strong financial results for the second quarter, showcasing significant growth across key metrics.

Financial Highlights

Metric Q2 FY2025-26 Q1 FY2025-26 QoQ Change
Net Profit ₹425.40 crore ₹356.40 crore 19.36%
Revenue ₹4,024.20 crore ₹3,777.40 crore 6.53%
EBIT ₹732.50 crore ₹552.20 crore 32.65%
EBITDA ₹771.00 crore ₹641.00 crore 20.28%
EBITDA Margin 14.07% 11.33% 274 bps

Coforge delivered a robust performance in the second quarter, with consolidated net profit rising to ₹376.00 crore from ₹317.00 crore in the previous quarter, marking an impressive growth of 18.6% quarter-on-quarter. This result nearly matched analyst estimates of ₹377.00 crore.

Revenue Growth and Operational Performance

The company's revenue grew to ₹3,985.00 crore from ₹3,690.00 crore in the previous quarter, representing a solid 8.05% increase. This growth in revenue underscores Coforge's ability to expand its business and capture market opportunities.

Coforge's operational efficiency was evident in its EBIT (Earnings Before Interest and Taxes) performance. The EBIT increased significantly to ₹560.00 crore from ₹417.00 crore in the previous quarter, though it fell slightly short of the estimated ₹575.00 crore.

Margin Expansion

One of the standout aspects of Coforge's Q2 results was the substantial expansion in its EBITDA margin. The margin grew to 14.07% from 11.33% quarter-on-quarter, aligning closely with the 14% estimate. This 274 basis points improvement in EBITDA margin reflects the company's focus on operational efficiency and cost management.

Year-over-Year Performance

When compared to the same quarter of the previous year, Coforge's performance shows even more impressive growth:

Metric Q2 FY2025-26 Q2 FY2024-25 YoY Change
Net Profit ₹425.40 crore ₹233.50 crore 82.18%
Revenue ₹4,024.20 crore ₹3,080.60 crore 30.63%
EBITDA ₹771.00 crore ₹464.30 crore 66.06%

The year-over-year comparison highlights Coforge's strong growth trajectory, with net profit nearly doubling and revenue increasing by over 30%.

Outlook

The strong Q2 performance positions Coforge well for continued growth. The significant improvements in profitability and operational efficiency suggest that the company's strategic initiatives are yielding positive results.

Investors and analysts will likely keep a close eye on Coforge's ability to maintain this growth momentum and further expand its margins in the coming quarters, especially given the dynamic nature of the global IT services market.

Historical Stock Returns for Coforge

1 Day5 Days1 Month6 Months1 Year5 Years
+1.06%+0.72%+13.39%+19.28%+14.21%+294.85%
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Coforge Reports Strong Q2 FY26 Results: Revenue Up 31.7% YoY, Declares Rs 4 Interim Dividend

2 min read     Updated on 24 Oct 2025, 09:28 PM
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Reviewed by
Shriram ShekharScanX News Team
Overview

Coforge Limited announced robust Q2 FY26 results with revenue reaching ₹39,857.00 million, a 31.70% YoY increase. EBIT grew by 59.10% YoY to ₹5,563.00 million, with EBIT margin expanding to 14.00%. PAT surged 86.00% YoY to ₹3,758.00 million. The company secured five large deals, with order intake of $514 million. The Board declared an interim dividend of ₹4 per share and approved restructuring of UK subsidiaries. John Speight was appointed as President and Executive Director.

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*this image is generated using AI for illustrative purposes only.

Coforge Limited , a leading global IT solutions and services organization, has announced robust financial results for the second quarter of fiscal year 2026, ending September 30, 2025. The company reported significant growth in revenue and profitability, along with strategic decisions aimed at enhancing operational efficiency.

Financial Highlights

Coforge demonstrated strong performance across key financial metrics:

Metric Q2 FY26 YoY Growth QoQ Growth
Revenue ₹39,857.00 31.70% 8.10%
EBIT ₹5,563.00 59.10% 31.80%
EBIT Margin 14.00% 240 bps 251 bps
PAT ₹3,758.00 86.00% 18.40%

The company's revenue in USD terms stood at $462.10 million, marking a 26.60% year-on-year increase and a 4.50% quarter-on-quarter growth.

Operational Performance

Coforge's operational metrics also showed positive trends:

  • Order intake for the quarter reached $514 million.
  • The order book executable over the next 12 months stood at $1.63 billion, representing a 26.70% year-on-year growth.
  • The company signed five large deals during the quarter across North America and APAC regions.
  • Global headcount increased to 34,896, with a net addition of 709 employees.
  • IT attrition rate remained low at 11.40%, among the lowest in the industry.

Strategic Decisions

The Board of Directors made several key decisions:

  1. Interim Dividend: Declared a second interim dividend of ₹4 per equity share (face value ₹2) for the financial year 2025-26. The record date is set for October 31, 2025, with payment to be made within 30 days of declaration.

  2. Subsidiary Restructuring: Approved the voluntary winding up of two UK subsidiaries - Coforge SF Limited and Coforge DPA UK Limited. This move aims to enhance cost efficiency and operational synergy across the company's UK business.

  3. Executive Appointment: John Speight has been appointed as President and Executive Director, effective October 10, 2025, subject to shareholder approval.

Auditor's Review

S R Batliboi & Associates LLP, the statutory auditors, issued unmodified limited review reports for the quarterly results, confirming the accuracy and compliance of the financial statements.

Management Commentary

Sudhir Singh, Chief Executive Officer and Executive Director of Coforge Ltd, expressed optimism about the company's performance and outlook: "The 8.1% sequential INR growth in Q2, a next twelve-month signed order book which is 26.7% higher YoY, a sales execution engine that signed 14 large deals last year and has already closed 10 large deals in the first half of this year, an EBIT margin expansion of 250 bps QoQ, coupled with one of the lowest employee attrition rates across the industry are all pointers to what we believe will be an exceptional fiscal'26."

Coforge's strong Q2 results and strategic initiatives demonstrate the company's resilience and growth potential in the competitive IT services landscape. The focus on large deals, operational efficiency, and talent retention positions Coforge well for continued success in the coming quarters.

Historical Stock Returns for Coforge

1 Day5 Days1 Month6 Months1 Year5 Years
+1.06%+0.72%+13.39%+19.28%+14.21%+294.85%
like20
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