Coforge's Remarkable Surge: Profits Soar Post Key Mergers

IT firm Coforge reported a significant rise in net profit to Rs 612.3 crore for Q4 FY26, driven by major tax benefits and mergers with Encora and Cigniti. Revenue growth reached 30% year-on-year. Coforge forecasts a robust FY27, fueled by AI investments and strategic mergers.

IT firm Coforge announced a major leap in its consolidated net profit, reaching Rs 612.3 crore for the January-March FY26 period, a sharp increase attributed mainly to strategic mergers and a one-time tax advantage. The year-ago period saw a profit of Rs 261.2 crore.

Revenue from operations jumped by 30% to Rs 4,450.4 crore compared to the previous year, buoyed by the merger with Cigniti and acquisition of Encora. The company's acquisition-related expenses included Rs 501 million for Encora and legal fees of Rs 35 million for a cybersecurity case.

Coforge's future looks promising, entering FY27 with a USD 1.75 billion order backlog. CEO Sudhir Singh emphasized strong revenue growth expectations, supported by significant AI investments, and targeting an EBITDA of over 20.5%.