Coforge Ltd — Q1 FY26
Coforge delivered an exceptional Q1 FY26 with 9.6% sequential dollar revenue growth, driven by a 32.3% surge in the Travel vertical and strong deal execution.
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
92%Questions answered0Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Why did reported margins decline 50bps QoQ despite adjustments showing improvement?
Asked by Prateek Maheshwari, HSBC Securities
CFO explained the nature of both items and confirmed they will persist.
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Question
So I just wanted to understand the work that you have explained on the slide or page 23 about what's the nature of the discount income that you guys report on long term contracts and the and this recurring income or mortgage business.
Saurabh Goel, CFO
Discounting income on long term contracts is an accounting interest entry... income from mortgage business is something very similar... these two will continue.
Partial answer
Medium priority
Why did discounting income quadruple this quarter and what is the trajectory?
Asked by Prateek Maheshwari, HSBC Securities
Explained the accounting mechanism but did not quantify future trajectory.
no specific trajectory givenqualitative explanation only
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Question
So on the discounting income, it was about 24,000,000 last quarter. It has quadrupled this quarter. So just wanted to understand, like, if somebody has to think how how should be the, basically, the trajectory of this going forward?
Saurabh Goel, CFO
As and when the unwinding of the discount is happening, the amount keeps going up... it's an accounting notional interest entry.
Partial answer
Medium priority
Why has CapEx increased from 2% to 5% of revenue over five years?
Asked by Prateek Maheshwari, HSBC Securities
Explained recent spike but did not address the long-term increase from 2% to 5%.
only addressed recent quarters, not five-year trend
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Question
So just wanted to understand overall what's happening with the CapEx. It has increased by 300 basis point, three fifty basis point over the last few years.
Saurabh Goel, CFO
CapEx increase in Q4 and Q1 was specific to two particular deals for a particular deal... out of $85,000,000, $62,000,000 have been received.
Answered
High priority
How is the macro environment and tariff uncertainty affecting client spending?
Asked by Vibhor Singhal, Nuvama Equities
CEO acknowledged macro uncertainty and its impact on discretionary spending.
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Question
Any color that you can provide as to how is the environment that you are looking at from the same industry point of view? It's been quite volatile... Is the tariff uncertainty still looming large?
Sudhir Singh, CEO & Executive Director
Enterprise budgets continue to oscillate given the overhang of tariff related discussions... discretionary nature of the spend has ebbed.
Answered
High priority
Why were banking and insurance soft this quarter? Is it temporary?
Asked by Vibhor Singhal, Nuvama Equities
CEO confirmed it's temporary and provided YoY growth numbers.
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Question
The big banking industry, banking as well as insurance, both were a tad soft in this quarter. Any specific reason to call out or just the quarterly variation?
Sudhir Singh, CEO & Executive Director
It will be back. There's nothing that's going to hold back the growth. Banking is still growing year on year at 32%. For us insurance at 20%.
Answered
Medium priority
How is AI adoption in banking and insurance? What solutions are we offering?
Asked by Vibhor Singhal, Nuvama Equities
CEO provided a detailed overview of AI adoption drivers and our positioning.
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Question
Any insights that you would be able to provide us to how the AI adoption is looking like in the banking industry... and what are the kind of solutions that we're looking at?
Sudhir Singh, CEO & Executive Director
Banking institutions are under pressure to improve ROE... driving technology investments focused on cost efficiency, product innovation, direct compliance, and customer retention.
Answered
High priority
Despite strong growth, why were margins flat? What levers for expansion to 14%?
Asked by Vibhor Singhal, Nuvama Equities
CFO explained Q1 margin dynamics and confirmed confidence in 14% EBIT margin guidance.
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Question
How the margins remain flat in this quarter. And going forward... what are the other levers that we are looking to expand margins towards Sudhir said? Are we targeting 14% for this fiscal year itself?
Saurabh Goel, CFO
Historically, Q1 has been a quarter wherein margins get depressed... Despite that, we were able to maintain EBIT margins... we are confident that we've had a good start from a EBIT margin standpoint.
Answered
Medium priority
What is the timeline for final integration of Signity?
Asked by Vibhor Singhal, Nuvama Equities
CFO provided a clear timeline window.
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Question
What is the timeline that we are looking for the final integration of Signiti? I know you mentioned that we're now going to NCLP. The earlier you had mentioned December 25 is probably the target.
Saurabh Goel, CFO
Could be minus a month or two, but December, January should be the timeline. And in case, whenever the approval comes in, the effective date of the merger is April 1.
Answered
High priority
How will the Sabre deal ramp up sequentially? Will TTH vertical continue to grow?
Asked by Abhishek Pathak, Motilal Oswal
CEO gave a clear sequential ramp outlook.
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Question
How do we expect the Sabre deal to ramp up sequentially from here on? I mean, sequentially, should we be expecting the TTH vertical to continue to grow over the next three quarters?
Sudhir Singh, CEO & Executive Director
Sabre deal will continue to ramp up sequentially in quarter two as well. And quarter three onwards, we would expect the resource loading, the total headcount to stabilize.
Answered
Medium priority
Where do you see OCF to EBITDA ratio settling on a steady state?
Asked by Abhishek Pathak, Motilal Oswal
CFO provided a specific range and rationale.
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Question
On a steady state basis, where do we see our OCF to EBITDA ratios settling?
Saurabh Goel, CFO
We maintain that till the time we continue to grow 65 to 70%. OCF to EBITDA is what we would like to maintain because rest will be needed for increased working capital.
Answered
High priority
With Q1 EBIT margin at 13% and full year target 14%, what drives 200bps improvement?
Asked by Sandeep Shah, Equirus Securities
CFO explained the drivers: operational efficiencies and ease of cost reduction offsetting wage hike.
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Question
The first quarter run rate being closer to 13 and full year being 14, so the exit has to be 15... what will pull out such kind of a 200 bps margin improvement in the next three quarters?
Saurabh Goel, CFO
Quarter one to quarter two to quarter three, you've always seen impact of operational efficiencies... wage hike impact is going to be very, very limited in q three, which will largely get set off by the lower piece of cost.
Answered
High priority
Is the 14% margin guidance as per BSE reported or management presentation format?
Asked by Dipesh Mehta, Emkay Global
CFO clarified the basis of the margin guidance.
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Question
Second question is about the 14 percentage margin, which you indicated for the year. Is it as per the BSE reported or the as per our presentation kind of format which you give?
Saurabh Goel, CFO
The margins that we are reporting right now as part of the management fact sheet, 14% EBIT is a like to like of a 13.2 that has been reported in the current quarter.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Reported EPS for the quarter is 9.5, normalized is 9 | 9.5 | 356 | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.