Coforge Reports Strong Q3FY26 Performance with 28.5% Revenue Growth
Coforge Limited reported strong Q3FY26 results with consolidated revenue of ₹41,881 million, up 28.5% YoY. Net profit reached ₹2,967 million despite exceptional charges of ₹1,476 million related to Labour Codes impact and acquisition costs. The company announced a major $2.35 billion acquisition of Encora companies and declared a third interim dividend of ₹4 per share. All geographical segments showed growth, with Asia Pacific leading at 75.1% increase.

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Coforge Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, demonstrating strong operational performance across multiple business segments. The IT services company reported significant growth in revenue and maintained healthy profitability despite facing some exceptional charges during the quarter.
Financial Performance Overview
The company's consolidated financial results showed robust growth momentum with total income reaching ₹42,020.00 million for Q3FY26. Revenue from operations stood at ₹41,881.00 million, marking a substantial 28.50% increase from ₹32,581.00 million reported in the corresponding quarter of the previous year.
| Financial Metric: | Q3FY26 | Q3FY25 | Growth (%) |
|---|---|---|---|
| Revenue from Operations: | ₹41,881.00 million | ₹32,581.00 million | +28.50% |
| Total Income: | ₹42,020.00 million | ₹33,119.00 million | +26.90% |
| Net Profit: | ₹2,967.00 million | ₹2,559.00 million | +15.90% |
| EBITDA: | ₹7,302.00 million | ₹4,895.00 million | +49.20% |
Segment-wise Revenue Performance
Coforge's geographical diversification strategy continued to yield positive results across all major markets. The Americas region remained the largest contributor, generating ₹23,773.00 million in revenue for Q3FY26, compared to ₹18,574.00 million in Q3FY25.
| Region: | Q3FY26 Revenue | Q3FY25 Revenue | Growth (%) |
|---|---|---|---|
| Americas: | ₹23,773.00 million | ₹18,574.00 million | +28.00% |
| Europe, Middle East and Africa: | ₹11,741.00 million | ₹10,732.00 million | +9.40% |
| Asia Pacific: | ₹3,652.00 million | ₹2,085.00 million | +75.10% |
| India: | ₹2,715.00 million | ₹1,190.00 million | +128.20% |
Exceptional Items and Strategic Developments
The quarter included exceptional items totaling ₹1,476.00 million, primarily related to two significant developments. The company recognized ₹1,179.00 million as impact from the newly notified Labour Codes by the Government of India, which affected gratuity and leave liabilities. Additionally, ₹135.00 million was provisioned for legal and professional expenses related to the proposed Encora acquisition.
| Exceptional Item: | Amount |
|---|---|
| Labour Codes Impact: | ₹1,179.00 million |
| Encora Acquisition Costs: | ₹135.00 million |
| Legal Costs (Security Incident): | ₹162.00 million |
Major Acquisition Announcement
During the quarter, the Board approved a significant acquisition agreement for Encora US Holdco, Inc. and Encora Holdings Ltd. for an enterprise value of $2.35 billion. The transaction structure includes $1.89 billion through share swap arrangement and the balance through term loans. The share swap involves issuing 9,37,96,508 fully paid-up equity shares at ₹1,815.91 per share, totaling ₹170,326.00 million in consideration.
Dividend Declaration and Corporate Actions
The Board declared a third interim dividend of ₹4.00 per equity share for FY26, with January 31, 2026 fixed as the record date. The dividend payment will be completed within 30 days of declaration. The company had previously implemented a share subdivision in March 2025, splitting each ₹10 share into five ₹2 shares, with all earnings per share figures adjusted accordingly.
Earnings Per Share and Share Capital
Basic earnings per share for continuing operations stood at ₹7.45 for Q3FY26, compared to ₹6.37 in Q3FY25. The paid-up equity share capital increased to ₹670.00 million from ₹669.00 million, reflecting the exercise of employee stock options during the quarter. A total of 445,748 options were exercised while 374,839 options lapsed, leaving 8,250,172 options outstanding as of December 31, 2025.
Historical Stock Returns for Coforge
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.11% | +0.36% | -8.55% | -9.96% | +2.15% | +230.32% |















































