Strong performance reported by Coforge in Q1FY26, marked by significant increases in revenue and deal volume
In a significant development, IT services provider Coforge has announced impressive growth in its revenue and profit for the first quarter of its financial year 2026 (FY26). The company's Q1 FY26 revenue reached USD 442 million (Rs 3,689 crore), marking a 9.6% quarter-on-quarter (QoQ) growth in dollar terms. This growth was underpinned by a 56.5% year-on-year (YoY) increase in revenue and a sharp 155.85% jump in profit compared to the same quarter last year.
One of the key drivers of this growth was the strong order intake of USD 507 million during the quarter, which contributed to a 46.9% YoY growth in the executable order book. This growth was supported by the signing of five large deals across North America, the UK, and the Asia-Pacific region.
Coforge's profitability also improved in Q1 FY26, with the EBITDA margin rising to 17.5%. The EBITDA for the quarter stood at USD 77.3 million, growing 13.6% QoQ and 50.1% YoY. Net profit for the quarter was Rs 317 crore, a 21.5% increase from the previous quarter and up 138.4% YoY.
The company's attrition rate remained one of the lowest in the IT industry, staying at 11.3%. This low attrition rate enabled better execution and sustained resource utilization, contributing to the company's growth. Coforge's workforce increased to 34,187, with 1,164 net additions during the quarter.
In addition to these factors, Coforge continued to invest in AI and digital innovation. The company launched AgentSphere, a library of AI agents for various sectors, and Forge-X, an AI-powered platform for application modernization. Coforge also launched DisputeXcelerate, a dispute management tool on the ServiceNow platform.
To bolster its cyber security offerings, Coforge partnered with Zscaler to offer Secure Access 360 through Microsoft Azure. This partnership aims to provide enhanced security solutions to clients.
The order book for Coforge grew 46.9% year-on-year, and the order book executable over the next 12 months for Coforge is now at USD 1.55 billion. In constant currency terms, Coforge's Q1 FY26 revenue rose 8.0% QoQ and 51.5% YoY.
In a positive move for shareholders, Coforge declared an interim dividend of Rs 4 per share with July 31, 2025 as the record date.
These factors combined have contributed to a sequential 8-9.6% increase in revenue in USD terms and improved profitability for Coforge in Q1 FY26. The company's growth strategy, focused on healthy order books, strong deal wins, low attrition supporting execution efficiency, and strategic expansion in high-growth technology areas such as AI and cloud security, appears to be paying off.
- The impressive growth in Coforge's revenue and profit for the first quarter of FY26 was supported by a strong order intake in the technology sector, particularly in North America, the UK, and the Asia-Pacific region.
- Coforge's investment in AI and digital innovation, such as the launch of AgentSphere, Forge-X, and DisputeXcelerate, and its partnership with Zscaler for enhanced cyber security solutions, reflect its strategic expansion in high-growth technology areas.
- In a move beneficial to its shareholders, Coforge declared an interim dividend of Rs 4 per share with July 31, 2025 as the record date, signifying a positive financial health of the company.
