Coforge Shares Surge 6% on Strong Q2FY26 Performance and FY26 Outlook

On Monday, the Coforge share price surged 6% touching a day’s high price of Rs 1,866.60 on NSE after it reported its Q2FY26 results in its latest exchange filings on the NSE. The company’s management commentary further highlighted Coforge’s continued drive towards digital-led transformation and strategic investments across both verticals and geographies.?

Financial Performance

For the quarter ended September 30, 2025, Coforge posted a consolidated operational revenue of Rs 3,985 crore for the quarter, up 31.73% year-on-year and 8.1% sequential increase in INR terms. The growth in constant currency terms stood at 25.7% year-on-year, emphasizing healthy demand across the company’s global markets. EBITDA margins stabilized at 18.3%, indicating effective cost management. EBIT margin expanded by 251 basis points sequentially to 14%, underpinning improved profitability. Net profit stood at Rs 425 crore, marking an 82.18% increase over Q2FY25. 

Segment-wise

Coforge saw a 36.75% growth increase YoY in the Americas region, followed by 69.50% in the India region, 46% in Asia Pacific (ex-India), and 11.61% in EMEA (Europe, Middle East, and Africa). For Q2FY26, the revenue mix from Americas stood at 57.9%, EMEA at 28.9% and 13.2% from Rest of the World. Vertical-wise, BFSI contributed 27.6%, Insurance 15.1%, Travel, Transportation & Hospitality 23.3%, Government (Overseas) 6.9%, and the remaining 27% from Others.

Order Book

Coforge demonstrated strong performance across various verticals, particularly in banking, financial services, and travel, contributing to consistent revenue growth. The company signed five large deals during the quarter, worth $514 million in total contract value (TCV). The executable order book as of Q2FY26 stood at $1.63 billion, up 26.7% year on year, reinforcing a healthy pipeline for future quarters.

Management Commentary

Sudhir Singh, Coforge’s CEO and Executive Director, said “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. We remain steadfast in our commitment to turning in the ninth consecutive year of sustained and robust growth despite the uncertain macros.”

Corporate Actions

Coforge’s Board has recommended an interim dividend of Rs 4 per share with a record date fixed as of October 31, 2025. The company also announced strategic restructuring of selected UK subsidiaries to improve operational efficiencies and governance. 

Company Outlook

Management remains optimistic about the second half of FY26 outperforming the strong first half, driven by sustained deal momentum and a robust order pipeline. Coforge expects to continue benefiting from digital transformation demand in regulated industries, especially from clients in the US, Europe, and Asia-Pacific regions. They expect a 14% EBIT margin for FY26 and aim to get the free cash flow to PAT to 70% to 80% on an ongoing basis as per CNBC TV18.

In conclusion, Coforge’s Q2FY26 results demonstrate a strong growth trajectory marked by revenue expansion, significant margin improvement, and a record order book. The management’s positive commentary on deal wins, commentary on outlook, and low attrition rates show a sustained improvement for FY26. Overall, Coforge is well poised to capitalize on digital transformation opportunities across global markets.