India · Delayed Price · Currency is INR Coforge Earnings Call Transcripts
Fiscal Year 2026
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Q3 FY26 delivered 4.4% sequential CC growth and 32.8% YTD dollar revenue growth, with six large deals signed and a 30% YoY increase in the 12-month order book. EBIT margin stood at 13.4%, and the Encora acquisition is set to further accelerate growth and AI capabilities.
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Q2 FY26 saw 5.9% sequential constant currency growth, 14% EBIT margin, and robust order intake, with AI-driven platforms fueling productivity and revenue per employee nearing $70,000. Management targets at least 14% EBIT margin and sustained FCF to PAT of 70%-80% amid positive demand across key verticals.
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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 of Encora creates a $2.5 billion tech services leader with a $2 billion AI-led core, scaling high-tech and healthcare verticals, expanding US and LATAM presence, and adding 45 $10M+ client relationships. The all-stock deal is expected to be EPS accretive, with significant revenue and cost synergies anticipated.
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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 strong margin expansion and four large deal wins. Cigniti integration boosted margins, and the order book rose 40% YOY. Robust demand, especially in travel and insurance, supports a positive outlook.
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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 a healthy pipeline. Cigniti acquisition is progressing, with consolidation from Q2, and margin guidance remains positive despite deferred wage hikes.