Earnings Review
Coforge Q2 consol PAT up 18% QoQ, beats Street view
This story was originally published at 18:54 IST on 24 October 2025
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--Coforge Jul-Sept consol net profit INR 3.76 bln
--Analysts saw Coforge Jul-Sept consol net profit at INR 3.64 bln
--Coforge Jul-Sept consol revenue INR 39.86 bln
--Analysts saw Coforge Jul-Sept consol revenue at INR 40.82 bln
--Coforge Jul-Sept consol net profit INR 3.76 bln vs INR 3.17 bln qtr ago
--Coforge Jul-Sept consol revenue INR 39.86 bln vs INR 36.89 bln qtr ago
--Coforge to pay INR 4 per share interim dividend
--Coforge interim dividend record date is Oct 31
--Coforge Apr-Sept consol net profit INR 6.93 bln vs INR 3.35 bln year ago
--Coforge Apr-Sept consol revenue INR 76.74 bln vs INR 53.83 bln year ago
--Coforge Jul-Sept consol revenue up 5.9% on qtr in constant currency terms
--Coforge Jul-Sept consol EBIT INR 5.56 bln vs INR 4.22 bln qtr ago
--Coforge Jul-Sept consol EBIT margin 14.0% vs 11.4% qtr ago
--Coforge 12-mo executable order book $1.63 bln on Sept 30, up 26.7% on yr
--Coforge Jul-Sept order intake $514 mln
--Coforge net added 709 employees in Jul-Sept; total headcount at 34,896
--Coforge Jul-Sept trailing 12-mo attrition 11.4% vs 11.3% qtr ago
--Coforge added 2 clients with order size above $10 mln in Jul-Sept
--Coforge Q2 consol sales from Americas INR 23.1 bln vs INR 20.9 bln qtr ago
--Coforge Q2 consol sales from Europe, W Asia, Africa INR 11.5 bln, up 5% QoQ
--Coforge: Signed five large deals in Jul-Sept
--Coforge Jul-Sept utilisation 82.3% vs 82.1% qtr ago
By Shakshi Jain and Arya S. Biju
MUMBAI – Mid-cap information technology company Coforge Ltd. Friday posted a strong double-digit sequential rise in its consolidated bottom line for the September quarter as total expenses of the company rose slower than the top line. The net profit of the company surpassed the Street's expectation by a small margin. Meanwhile, Coforge's top line rose in high single digit for the reporting quarter but fell short of analysts' expectation.
The company's consolidated net profit for the September quarter rose just over 18% sequentially to INR 3.76 billion. Analysts had expected the company to report a bottom line of INR 3.64 billion. Coforge's revenue for the three-month period rose 8% on quarter to INR 39.86 billion, lower than the INR 40.82 billion expected by analysts. On a year-on-year basis, the company's bottom line jumped 86% and top line grew 32%.
In constant currency terms, the company's revenue for the quarter grew 5.9% sequentially, almost in line with the 6% sequential growth estimated by the Street. Coforge reported a revenue of $462.1 million for three months ended September, up over 4% on quarter and nearly 27% on year.
The company's total expenses for the quarter grew 4.5% sequentially to INR 34.66 billion, lower than 8% sequential rise in its top line. This was also lower than the near 9% sequential rise in total expenses it reported in the trailing quarter. The company's costs related to employee benefits, which accounted for nearly 66% of its total costs in the reporting quarter, rose nearly 3% on quarter to INR 22.72 billion. This was slower than the 11% sequential rise in the metric reported a quarter ago.
The company's second-largest expense, other expenses, rose over 9% quarter to INR 9.79 billion, and its costs related to depreciation and amortisation rose around 8% on quarter to INR 1.72 billion. Its tax expense jumped around 68% on quarter to INR 1.33 billion. On other hand, the company's finance costs for the reporting quarter fell over 11% sequentially to INR 409 million.
The company's consolidated earnings before interest and tax jumped nearly 32% sequentially and 59% on year to INR 5.56 billion. Its consolidated EBIT margin improved 251 basis points on quarter to 14%. Analysts had estimated the company to report an EBIT margin of 13.2-14.0% in the reporting quarter.
The company signed five large deals during the September quarter across North America and Asia-Pacific regions. Its order intake was $514 million in the reporting quarter, up from $507 million in the trailing quarter. The IT company's order book executable over the next 12 months was $1.64 billion as of Sept. 30, up nearly 6% on quarter and nearly 27% on year.
The company added a total of nine new clients in the September quarter, compared with six clients added in the previous quarter and 13 added in the corresponding quarter a year-ago. This included 2 clients with an order size of above $10 million.
Consolidated revenue from operations in Americas, which accounts for nearly 58% of its total sales, rose over 10% on quarter to INR 23.08 billion. Revenue from its operations in Europe, West Asia, and Africa, which accounts for nearly 29% of the total sales, rose nearly 5% on quarter to INR 11.55 billion. The company's revenue from the Asia-Pacific region rose 6% on quarter to INR 3.42 billion and those from India rose over 4% to INR 1.81 billion.
As of Sept. 30, the company had a global employee headcount of 34,896, up from 34,187 as of Jun. 30. Employee utilisation improved slightly to 82.3% from 82.1% in the previous quarter and 82.2% in the year-ago quarter. Its trailing 12-month attrition rate for the reporting quarter was 11.4%, up 10 bps from 11.3% in the previous quarter but down 30 bps from 11.7% a year ago.
Coforge's consolidated net profit for six months ended September more than doubled on year to INR 6.93 billion from INR 3.35 billion. Its revenue for the same period grew nearly 43% on year to INR 76.74 billion.
"The 8.1% sequential INR growth in Q2, a next twelve-month signed order book which is 26.7% higher YoY, a sales execution engine that signed 14 large deals last year and has already closed 10 large deals in the first half of this year, an EBIT margin expansion of 250 bps QoQ, coupled with one of the lowest employee attrition rates across the industry are all pointers to what we believe will be an exceptional fiscal '26," Sudhir Singh, chief executive officer and executive director of the company, said in a post earnings press release. "We remain steadfast in our commitment to turning in the ninth consecutive year of sustained and robust growth despite the uncertain macros," Singh added.
Along with the quarterly results, the company declared a second interim dividend of INR 4 per share for 2025-26 (Apr-Mar), with the record date set at Oct. 31. The company's board also approved the voluntary winding up of its UK-based step-down wholly-owned subsidiaries, Coforge SF Ltd. and Coforge DPA UK Ltd. to bring synergy in operations and enhance cost efficiency across the company's business in the UK.
The company announced its earnings after market hours on Friday. Ahead of the earnings, shares of the company closed marginally higher at INR 1,760 on the National Stock Exchange. End
US$1 = INR 87.84
Edited by Akul Nishant Akhoury
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