Analyst Concall
Coforge positive on BFSI segment in near-, medium-term
This story was originally published at 11:11 IST on 24 July 2025
Register to read our real-time news.Informist, Thursday, Jul. 24, 2025
Please click here to read all liners published on this story
--Coforge: Saw exceptional earnings performance in Apr-Jun
--CONTEXT: Comments by Coforge management in post-earnings analyst call
--Coforge: Pipeline in BFSI strong, not concerned about ops
--Coforge: Banking institutions under pressure due to macroecon uncertainty
--Coforge: Sabre deal ramp-up to continue in Jul-Sept
--Coforge: Capex to taper down in FY26
--Coforge: Signed one large deal in Q1 from one of Cigniti's top clients
--Coforge: Near-, medium-term outlooks on BFSI segment positive
By Anjana Therese Antony
MUMBAI – The management of Coforge Ltd. Thursday said its near-to-medium term outlook on the banking, financial services, and insurance operations is positive. Their comments come amid persistent uncertainties related to US tariffs and some pressure on Indian information technology companies' BFSI operations in the US. "Banking is still growing 32% year-on-year for us. Insurance is growing 20%," the management said in a post-earnings conference call with analysts.
The Noida-based company said its deal pipeline in the BFSI segment is strong and that it is not concerned about the short-, medium- and long-term growth. Coforge's revenue from Americas accounted for nearly 58% of its overall top line in the June quarter and BSFI sales constituted nearly 28% of the total revenue. Banking institutions are under pressure to improve their return on assets, the management said.
The company said it performed exceptionally well in the June quarter. Its consolidated net profit rose nearly 22% on quarter to INR 3.17 billion and revenue increased more than 8% sequentially to INR 36.89 billion. Compared to the year-ago period, the company's bottom line increased a whopping 138% and top line rose over 56%. However, both the key metrics missed Street's expectations.
During the June quarter, Coforge signed five large deals. One was with Cigniti Technologies Ltd. for an artificial intelligence-infused application for modernisation, the management said. In December, Coforge's board had approved its merger with listed entity Cigniti Technologies. The company bagged two other large deals for digital transformation from North America-based clients. The fourth large deal was from a client in West Asia and the fifth one was from Asia for transformation of technology infrastructure, the company said.
The company said it will continue to ramp up its deal with US-based Sabre Corp. It had signed an agreement with Sabre in March to accelerate the latter's pace of product delivery and launch additional innovative artificial intelligence-enabled solutions.
Despite posting strong earnings growth, shares of Coforge Thursday fell almost 9% to a near two-month low of INR 1,683.70 on the National Stock Exchange. At 1107 IST, the shares were down nearly 8% at INR 1,703.80. Shares of Cigniti Technologies also hit a near-two-month low of INR 1,590 on NSE, down almost 8% from the previous close. End
US$1 = INR 86.27
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Nishant Maher
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
