Earnings Review
Coforge posts fastest growth in 3 qtrs, outshines most peers
This story was originally published at 09:09 IST on 24 July 2025
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--Coforge Apr-Jun consol net profit INR 3.17 bln
--Analysts saw Coforge Apr-Jun consol net profit at INR 3.39 bln
--Coforge Apr-Jun consol net profit INR 3.17 bln vs INR 2.61 bln qtr ago
--Coforge Apr-Jun consol revenue INR 36.89 bln vs INR 34.10 bln qtr ago
--Coforge to pay INR 4 per share interim dividend
--Coforge interim dividend record date is Jul 31
--Coforge Q1 consol Americas revenue INR 20.92 bln vs INR 18.66 bln qtr ago
--Coforge Apr-Jun consol Europe, West Asia, Africa revenue INR 11 bln
--Coforge Q1 consol Asia Pacific revenue INR 3.23 bln vs INR 2.34 bln qtr ago
--Coforge Q1 consol India revenue INR 1.74 bln vs INR 2.13 bln qtr ago
--Coforge Apr-Jun consol adjusted EBITDA INR 6.44 bln vs INR 5.75 bln qtr ago
--Coforge Apr-Jun consol EBITDA margin 17.5%, up 61 bps on quarter
--Coforge: Order intake $507 mln in Apr-Jun, signed five large deals
--Coforge:Orderbook executable over next 12 months $1.55 bln at June qtr end
--Coforge Apr-Jun trailing 12-mo attrition 11.3% vs 10.9% qtr ago
--Coforge Apr-Jun employee utilisation 82.1% vs 82.0% qtr ago
--Coforge net headcount up by 1,164 in Apr-Jun
By Anjana Therese Antony and Gopika Balasubramanium
MUMBAI – Unlike most of its information technology peers, Coforge Ltd. posted strong sequential growth in earnings for Apr-Jun, the fastest in three quarters, despite the current global uncertainty about US tariffs and cautious approach among clients. The company also continues to have one of the lowest attrition rates among the top listed IT companies in India.
The Noida-based company's consolidated net profit rose nearly 22% on quarter to INR 3.17 billion, but missed the Street's expectation of INR 3.39 billion by a slight margin. Its revenue increased more than 8% from the previous quarter to INR 36.89 billion, but it also failed to meet the consensus estimate of INR 37.26 billion. Compared to the year-ago period, the company's bottom line increased a whopping 138% and top line rose over 56%.
The company's 8% sequential revenue growth in constant currency terms was also among the strongest reported by IT companies so far for the June quarter. Its revenue in dollar terms rose 9.6% to $442 million. "The 9.6% sequential dollar growth in Q1, a next twelve-month signed order book which is 46% higher YoY, a very robust large deal pipeline and a pathway to 14?IT in FY26, are all pointers to what we believe will be an exceptional fiscal'26," Sudhir Singh, chief executive officer and executive director, was quoted as saying in a press release by the company.
The IT company's consolidated earnings before interest, tax, depreciation, and amortisation grew 12.1% sequentially and over 52% on year to INR 6.44 billion. EBITDA margin rose 61 basis points to 17.5% during the quarter. The company has announced an interim dividend of INR 4 per share for FY26, setting Jul. 31 as the record date.
The company signed five large deals during the June quarter and its order intake was $507 million. The mid-cap IT player's order book executable over next 12 months grew nearly 47% on year to $1.55 billion at the end of the June quarter, an investor presentation showed.
Coforge's consolidated revenue from America, which accounts for nearly 57% of its total revenue, rose 12% sequentially to INR 20.92 billion. Revenue from Europe, West Asia, and Africa was largely unchanged on quarter at INR 11 billion. These three regions contributed almost 30% to the total revenue of Coforge. From the Asia-Pacific region, the company earned INR 3.23 billion, up 38% on quarter. Revenue from India was INR 1.74 billion, down 18.5% on quarter.
As of Jun. 30, the company had a global employee headcount of 34,187, up from 33,023 as of Mar. 31. Employee utilisation improved slightly to 82.1% from 82.0% in the previous quarter. Its trailing 12-month attrition for the June quarter was 11.3%, up 40 basis points from 10.9% in the previous quarter and down 10 bps from 11.4% a year ago.
The company announced its earnings after market hours on Wednesday. The company said it will pay an interim dividend of INR 4 per share. On the National Stock Exchange, shares of the company closed at INR 1,849.70, down 0.5% from the previous day. End
US$1 = INR 86.40
Edited by Ashish Shirke
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