Coforge reported a stable performance for the December quarter, with revenue from operations rising 5.1% sequentially to ₹4,188 crore, supported by strong deal momentum and steady execution. The quarter was marked by robust order intake, even as profitability came under pressure due to one-time cost impacts linked to labour code adjustments.
The standout highlight of the quarter was deal wins. Coforge signed six large contracts during the period, driving total order intake to $593 million. This momentum translated into a healthy executable order book of $1.72 billion for the next twelve months, representing a growth of over 30% compared to the same period last year. The expanding pipeline underscores sustained demand across the company’s core verticals despite a cautious macro environment for IT services.
Revenue growth exceeded market expectations in constant currency terms, with sequential growth of 4.4%, higher than the 3.5% analysts had anticipated. On a year-on-year basis, revenue increased 28.5% in rupee terms and 22.6% in dollar terms, reflecting both organic growth and scale benefits from recent business traction.
Earnings, however, showed mixed trends. EBIT for the quarter came in at ₹559.4 crore, largely flat compared to the previous quarter. EBIT margin declined by 60 basis points to 13.4%, down from 14% in the September quarter, as margins were impacted by higher costs and one-time adjustments. Net profit fell sharply by 33% sequentially to ₹250 crore, compared to ₹375.8 crore in the previous quarter, with the impact of IT Labour Codes accounting for ₹118 crore of the decline.
On the people front, Coforge added 445 employees during the quarter, taking its total headcount to 35,341. Attrition improved further to 10.9%, among the lowest levels seen in the mid-tier IT services segment, signalling workforce stability and improved retention.
Chief executive Sudhir Singh said the company’s growth outlook remains strong, highlighting the planned combination with Encora. He noted that the resulting $2 billion data, cloud and AI engineering core is expected to strengthen Coforge’s competitive positioning and support sustained outperformance over the coming years.
Despite the operational momentum, Coforge’s stock has remained under pressure, declining over 5% in the past month, as investors remain cautious about mid-tier IT firms amid margin concerns and broader sector uncertainty.
