India · Delayed Price · Currency is INR Coforge Earnings Call Transcripts
Fiscal Year 2026
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FY 2026 saw 29.2% USD revenue growth, 83% EBIT growth, and margin expansion driven by AI and automation. FY 2027 guidance calls for 20.5%-21% EBITDA margin, robust revenue growth, and 100%+ FCF to PAT, with strong deal wins and a diversified client base.
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Q3 FY26 saw 4.4% sequential CC revenue growth and 32.8% YTD dollar growth, driven by six large deals and strong vertical performance in healthcare, high-tech, and travel. EBIT margin stood at 13.4%, with robust free cash flow and a record order book. The Encora acquisition and AI-led delivery transformation position the company for exceptional growth in FY27.
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Q2 FY26 saw 5.9% sequential constant currency revenue growth and a 14% EBIT margin, driven by strong AI-led transformation, robust deal wins, and low attrition. The order book reached a record $1.63 billion, with management targeting sustained growth and at least 14% EBIT margin for FY26.
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Q1 delivered 9.6% sequential USD revenue growth, record order book, and robust deal wins, with strong AI-driven solutions and margin guidance of 14% for FY26. CapEx to normalize after major data center investment.
Fiscal Year 2025
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The acquisition creates a $2.5 billion tech services leader focused on AI-led engineering, cloud, and data, with significant synergies expected from cross-selling and operational efficiencies. The all-stock deal brings in Advent and Warburg as major shareholders, with closing targeted in 4-6 months.
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FY25 saw 31.5% revenue growth, record order intake, and margin expansion, driven by large deals and balanced performance across all segments. FY26 outlook remains robust with a strong pipeline, continued margin improvement, and no slowdown in organic growth expected.
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Q3 FY25 saw 8.4% sequential and 40.3% YOY CC revenue growth, with margin expansion and strong deal wins. All geographies, verticals, and service lines contributed robustly, and the order book rose 40% YOY. Management expects continued growth, margin tailwinds, and successful Cigniti integration.
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Sequential revenue grew 26.8% in USD, with broad-based vertical and geographic growth, and EBITDA margin expanded to 15.8%. Cigniti integration drove strong synergies, order intake hit $516M, and the outlook remains robust with a raised EBITDA target for Cigniti.
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Q1 FY25 saw strong sequential growth, margin expansion, and record headcount addition, with robust order intake and operational control of Cigniti secured. All major verticals grew YoY, and the outlook remains positive with further margin improvement and revenue growth expected from Q2.