- Coforge reported an exceptional net profit of ₹375.8 crore in Q2 FY26, marking an 85.95 per cent year-on-year (YoY) surge, driven by strong operational efficiency.
- The company’s revenue grew 31.37 per cent YoY to ₹3,985.7 crore, supported by a 26.7 per cent YoY increase in the next twelve-month order book and a 250 bps EBIT margin expansion.
- Coforge announced a second interim dividend of ₹4 per share for FY26 and maintained one of the industry’s lowest attrition rates at 11.4 per cent, securing its future Profit generation capacity.
Coforge
Coforge Posts Exceptionally Strong Financial Performance in Q2 FY26
Coforge Ltd., the prominent global IT services firm, has delivered a stellar performance for the quarter ended September 2025 (Q2 FY26), reinforcing its strong position in the competitive technology sector. The company’s operational revenue demonstrated robust growth, standing at ₹3,985.7 crore. This figure represents a substantial 31.37 per cent year-on-year (YoY) increase compared to the ₹3,025.6 crore reported in the corresponding quarter of the previous fiscal year (Q2 FY25). This acceleration in top-line growth is a direct indicator of successful market penetration and execution of large-scale digital transformation projects across its client base. The ability of Coforge to maintain this high-growth trajectory, especially amidst the prevailing global economic uncertainties and muted spending by some clients, highlights the resilience and relevance of its specialized service offerings, particularly in the banking, financial services, and insurance (BFSI) sectors.
The management commentary further highlighted the strong operational momentum. Sudhir Singh, Chief Executive Officer and Executive Director of Coforge, pointed out that the company achieved an 8.1 per cent sequential growth in Indian Rupee (INR) terms during the quarter. Beyond the quarterly numbers, the forward-looking indicators remain highly promising. Coforge successfully grew its next twelve-month order book by 26.7 per cent YoY, which provides strong revenue visibility and reduces future execution risk. Furthermore, the company showcased significant efficiency gains, evidenced by a 250 basis points (bps) expansion in its EBIT (Earnings Before Interest and Taxes) margin. This margin improvement is critical, as it directly impacts the bottom line and signals that the revenue growth is translating efficiently into core operating Profit. The combination of aggressive revenue expansion, margin enhancement, and a rapidly growing order book positions Coforge strongly for sustained growth in the latter half of the fiscal year, allowing it to meet its commitment to achieving its ninth consecutive year of robust growth despite external headwinds.
Profit
Profit Soars 86% YoY, Driving Dividend Declaration
The most striking highlight of the Q2 results is the massive surge in net profit. Coforge reported a net Profit of ₹375.8 crore, marking an extraordinary increase of 85.95 per cent year-on-year compared to the ₹202.1 crore earned in Q2 FY25. On a sequential basis, the Profit also demonstrated robust growth, rising 18.4 per cent from the ₹317.4 crore reported in the preceding quarter (Q1 FY26). This dramatic increase in Profit is significantly higher than the revenue growth rate, underscoring the benefits derived from operating leverage, successful cost management initiatives, and the aforementioned expansion in the EBIT margin. The outperformance of Profit relative to revenue growth confirms that the business model is becoming increasingly efficient and scalable.
The strong financial health, primarily evidenced by the spectacular Profit growth, has directly translated into rewards for shareholders. The company announced a second interim dividend of ₹4 per equity share for the fiscal year 2026 (FY26). Given that the face value of each equity share is ₹2, this represents a generous payout that reflects management’s confidence in the company’s sustained earnings capacity. The record date for determining the eligible shareholders who will receive this dividend has been fixed as October 31, 2025. Furthermore, Coforge has committed to ensuring the dividend payment is made to the eligible investors within 30 days of its declaration, adhering to best corporate governance practices. This consistent approach to returning value to shareholders is a key factor in attracting and retaining long-term investors, who value both growth and stable distributions from their holdings.
Coforge
Coforge Secures Large Deals and Maintains Low Attrition
The foundation of Coforge‘s financial success is rooted in its ability to secure significant new business and maintain an exceptionally stable and engaged workforce. The company reported a strong order intake of $514 million during the second quarter, demonstrating continued success in winning mandates from global clients. This quarterly order intake feeds into its larger, high-visibility pipeline. The executable order book for the next twelve months now stands at an impressive $1.63 billion. An executable order book of this size provides a reliable projection of future revenue and acts as a significant de-risking factor for analysts assessing the company’s financial forecasts. The consistency in winning large deals is a testament to the strength of Coforge‘s domain expertise and its reputation for successful project delivery.
In the first half of FY26 alone, Coforge successfully signed 10 large deals, a clear indicator of the scale and quality of business being onboarded. On the human resources front, the company maintained one of the lowest attrition rates in the IT industry, standing at just 11.4 per cent. Low attrition is a critical competitive advantage in IT services, as it reduces costs associated with hiring and training and helps retain institutional knowledge, which is essential for complex client projects. During the quarter, Coforge added 709 employees sequentially, bringing its total headcount to 34,896. This focused and sustained hiring, combined with low staff turnover, ensures that the company has the necessary talent pool to execute its rapidly growing order book and support the strong Profit momentum.
Profit
Profit and Market Reaction: A Positive Trajectory
The market’s initial reaction, prior to the post-market hours announcement of the explosive Profit growth and dividend, was cautiously optimistic. Coforge shares had settled slightly higher on the day, closing up 0.26 per cent at ₹1,759.50. However, the magnitude of the 86 per cent YoY Profit surge and the robust growth across all operational metrics are likely to generate significantly more positive sentiment when the market opens next, potentially fueling further upward momentum for the Stock. The key takeaway for investors is that the Profit performance is not a one-off event but the result of a deliberate, sustained strategy.
The management’s explicit commitment to delivering its ninth consecutive year of sustained and robust growth provides a high degree of confidence in the future Profit trajectory. Despite CEO Sudhir Singh acknowledging the “prevailing global uncertainties,” the company’s Q2 performance demonstrates an exceptional ability to navigate these challenges through strategic focus, operational efficiency, and a differentiated service portfolio. The combination of strong revenue growth, high Profit conversion, a healthy order book, and sector-leading talent retention metrics suggests that Coforge is well-insulated against broader economic slowdowns, making its Profit outlook highly positive for the remainder of FY26 and beyond.
