Coforge shares drop nearly 7% ahead of board meet to consider fund raising

Shares of the Noida-based information technology company, Coforge, fell as much as 6.94% to hit an intraday low of ₹1,739.30 on the National Stock Exchange on Tuesday, December 23. On the BSE, Coforge stock dropped as much as 6.91% after the company informed exchanges that its board will meet on Friday, December 26, to consider raising funds.

Coforge's board will consider raising funds by way of issuance of equity shares or any other eligible securities through permissible modes.

Coforge in a regulatory filing said, "Meeting of the Board of Directors of the Company is scheduled to be held on Friday, December 26, 2025, inter alia, to consider and approve the proposal for raising of funds by way of issuance of equity shares or any other eligible securities through permissible modes, including but not limited to a private placement, a qualified institutions placement, preferential issue, or any other method or combination of methods as may be permitted under applicable laws, subject to such regulatory/statutory approvals as may be required and the approval of shareholders of the Company and to approve ancillary actions (including convening of shareholders meeting through extraordinary general meeting or postal ballot) for the above mentioned fund raising subject to such regulatory / statutory approvals as may be required including approval of shareholders in this regard."

After the board meeting on Friday, the company will hold a conference call with analysts and institutional investors at 5:30 pm.

Coforge Q2 earnings

Coforge in the second quarter of current financial year reported an 18.4% quarter-on-quarter (QoQ) increase in its consolidated net profit, attributed to the owners of the company, to ₹375.8 crore.

In the quarter-ago period, the company had clocked a profit of ₹349 crore, it said in a regulatory filing.

During the quarter under review, its revenue from operations witnessed an 8.05% QoQ growth at ₹3,985.7 crore, compared to ₹3,688.9 crore in the first quarter of the same fiscal year.

At an operational level, its EBITDA (earnings before interest, tax, depreciation, and amortisation), also known as operating profit, stood at ₹728.2 crore for the September quarter of FY26, marking a 15.3% QoQ jump from ₹631.4 crore in the first quarter of FY26.

Its EBITDA margin expanded by 115 basis points (bps) to 18.3% during the quarter, as against 17.1% in the June quarter of FY26.

The IT firm maintained an attrition rate of 11.4%, while its headcount stood at 34,896, it said.

During the second quarter of FY26, the company signed five large deals across North America and APAC. Furthermore, its order executable stood at $1.63 billion, marking a 26.7% year-on-year (YoY) growth.

Coforge's board of directors also declared its second interim dividend of ₹4 per equity share with a face value of ₹2 each (fully paid-up).

As of 10:41 am, Coforge shares traded 5.02% lower at ₹1,775, underperforming the NIFTY IT index which was down 0.8%.