Coforge shares jump 10% after stellar Q4; upbeat FY27 revenue outlook

The company reported a multifold surge in consolidated net profit to ₹612.3 crore for January-March FY26, driven by a major one-time tax benefit and strong operational growth.

The company had posted a net profit (attributable to owners of the company) of ₹261.2 crore in the year-ago period.

Revenue from operations grew 30% to ₹4,450.4 crore in Q4 FY26, from ₹3,422.2 crore logged a year ago.

On a quarter-on-quarter (QoQ) basis, profit more than doubled, and revenue grew 5.2% during the quarter under review.

Other key details

Reported Q4 PAT reflects the reversal of deferred tax liability due to the Cigniti merger, the company said in a regulatory filing.

“Q4 FY26 includes acquisition and integration-related expenses for Encora of ₹501 million and legal expenses related to the cybersecurity case of ₹35 million. ETR for the quarter was impacted by the release of deferred tax liabilities aggregating ₹1,810 million, recognised in the P&L pursuant to the merger of Cigniti into Coforge Ltd,” Coforge said.

Coforge completed the acquisition of Silicon Valley-based AI firm Encora for an enterprise value of $2.5 billion in April 2026.

It has also completed the acquisition of Cigniti Technologies. The company added 436 employees in the March 2026 quarter, bringing the total headcount to 35,777.

FY26 results

For the full fiscal year of FY26, Coforge’s net profit came in at ₹1,555.7 crore, a 91.5% increase from ₹812.1 crore in FY25, primarily due to gains from the sale of stake in Coforge Advantage Go in May 2025.

“Coforge UK Limited completed the sale of its entire stake in Coforge Advantage Go Limited on 30 May 2025, resulting in a gain of ₹1,129 million, offset by an operational loss of ₹427 million incurred until completion. The net gain of ₹702 million has been reported as profit from discontinued operations in the consolidated financial results,” the company said.

Revenue from operations stood 35.8% higher at ₹16,402.7 crore during the fiscal.

What the CEO said

“With an order executable of $1.75 billion, we enter FY27 with strong momentum and confidence. We expect to deliver robust revenue growth in FY27 and plan to deliver an EBITDA of more than 20.5% on a consolidated basis in FY27,” said Sudhir Singh, Chief Executive Officer and Executive Director, Coforge.

The company, which made AI investments worth $5.5 million in FY26, said AI is acting as a lever for both revenue growth and margin expansion, reflected in a strong share of AI-attributed revenue and rapid growth in AI TCV bookings.