Coforge Quarterly Results Q1 FY26

Coforge, a prominent player in the IT services sector, has delivered an impressive performance in the first quarter of FY26. The company showcased strong year-on-year (YoY) growth in revenue, net profit, and deal wins, reinforcing its position in the digital transformation space. From robust financial metrics to significant deal closures, Coforge's Q1 FY26 results offer valuable insights into its strategic direction and market positioning.

In this article, we provide a detailed analysis of Coforge's quarterly performance, including revenue growth, profit margins, deal wins, and stock market reactions.

Before diving into Coforge’s performance, it is worth mentioning Cipla’s Q1 FY26 results as a point of comparison. Cipla reported a revenue of nearly Rs. 7,000 crore, driven by its One-India business, which contributed significantly to its earnings. The company achieved a 10% YoY growth in net profit, showcasing strong operational performance.

For more details on Cipla’s Q1 results, refer to Bajaj Broking Blog on Cipla Q1 Results.

Coforge Q1 revenue and net profit growth

Coforge reported a stellar financial performance in Q1 FY26, driven by strong business momentum and robust demand for its digital services.

Key Financial Highlights:

• Revenue: Rs. 3,689 crore, marking a 56.5% YoY growth.
• Net Profit (PAT): Rs. 317 crore, which represents a remarkable 138.4% YoY increase.

The sequential growth was equally impressive, with revenue rising by 8.2% quarter-on-quarter (QoQ). This growth was attributed to the company’s ability to secure large deals and expand its presence in key markets.

Revenue and Profit Growth Table:

For a deeper analysis of Coforge’s financial performance, visit Bajaj Broking Blog.

Coforge demonstrated operational efficiency in Q1 FY26, achieving an EBITDA margin of 17.5%. This marks an increase of 61 basis points (bps) sequentially, reflecting the company’s focus on cost optimisation and improved operational metrics.

Factors Driving Margin Expansion:

1. Increased Revenue Contribution: Higher revenue from large deals.
2. Operational Efficiency: Optimised resource utilisation and cost management.
3. Favourable Currency Movements: Positive impact of foreign exchange fluctuations.

EBITDA Margin Comparison Table:

For more insights, explore Business World EBITDA Margin Details.

Coforge’s ability to secure large deals remains a cornerstone of its growth strategy. In Q1 FY26, the company reported an order intake of $507 million, which includes five significant deals across diverse geographies and industries.

Key Order Book Metrics:

• Order Intake: $507 million in Q1 FY26.
• 12-Month Executable Order Book: $1.55 billion, a 46.9% YoY increase.

This strong order book highlights Coforge’s robust pipeline and its ability to drive sustained revenue growth in the coming quarters.

Order Book Statistics Table:

To learn more about Coforge’s deal wins, visit Coforge Share Price.

Despite the strong financial performance, Coforge’s stock faced early volatility post-results, with the share price dipping by 5%. This reaction could be attributed to broader market conditions and profit-booking by investors.

Interim Dividend Announcement:

Coforge also declared an interim dividend of Rs. 4 per share, with the record date set for the coming weeks. This move reflects the company’s commitment to rewarding shareholders while maintaining a healthy balance sheet.

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Coforge’s Q1 FY26 results underline its strong growth trajectory and strategic focus on digital transformation. With a 56.5% YoY increase in revenue, a 138.4% surge in net profit, and a robust order book of $1.55 billion, the company is well-positioned for sustained growth.

While the stock market reaction was mixed, the announcement of an interim dividend and the company’s financial performance reflect its commitment to delivering value to shareholders. As IT investors look for growth opportunities, Coforge’s Q1 results provide a compelling case for its potential in the digital services space.

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