Coforge Ltd — Q3 FY26
Coforge delivered a strong Q3 FY26 with 4.4% sequential CC revenue growth, driven by six large deal wins and a record executable order book of $1.72B, up 30% YoY.
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.
88%Questions answered0Evaded / deflected12Questions auditedConsistentNumbers vs filing
Answered
High priority
Why are BFS and insurance soft YoY? Is it temporary?
Asked by Abhishek Pathak, Motilal Oswal
CEO gave specific forward-looking guidance on banking growth and addressed insurance growth QoQ.
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Question
BFS and insurance seem to be a little bit soft on a YoY basis for the past couple of quarters. Just wondering on the BFS side, is this temporary and sort of is this partly attributable to the transitional leadership we've seen in this vertical?
Sudhir Singh, CEO
Given the large deal momentum we've seen in quarter three and what we think is likely to happen in quarter four, we would suspect that while healthcare and high-tech will continue to grow at a tier that they are, banking might be the fastest-growing core vertical of the firm next year.
Answered
High priority
How is pricing and delivery changing with AI tools?
Asked by Abhishek Pathak, Motilal Oswal
CEO explained changes in delivery model and pricing approach with specific examples.
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Question
How are we pricing deals differently? How are we structuring these deals differently from a year back? Do you see more and more margin gains coming in as we use, I mean, as we change that balance between humans and AI?
Sudhir Singh, CEO
We've restructured how we deliver. We are moving towards hybrid delivery models that combine agentic workflows with human expertise. And finally, critically, we're also willing to underwrite outcomes. Our risk-reward commercial models tie our fees to our clients' achieved results.
Partial answer
Medium priority
Why did long-term unbilled revenues increase?
Asked by Abhishek Pathak, Motilal Oswal
CFO attributed increase to contract nature but did not quantify or provide modeling guidance.
no specific breakdowndeferred to internal guardrails
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Question
The unbilled revenues long-term seem to have kind of increased a bit YoY and QoQ. If you could just explain sort of why, I mean, what's happening there and how should we kind of model that going forward?
Saurabh Goel, CFO
The increase in whether it is details or it is long-term unbilled, it is tied to the nature of the contracts that are being signed up. And the way we are tracking our numbers internally is we are making sure that there is FCF to PAT as a ratio that is getting delivered quarter-on-quarter.
Answered
High priority
What are the dynamics and growth avenues in healthcare and public services?
Asked by Vibhor Singhal, Nuvama
CEO provided specific vertical focus and geographic strategy.
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Question
If you could just take through the dynamics of these two sectors, how are we positioning ourselves in this pre-Encora? In healthcare, how are we looking in terms of payers and providers? In public services, are we looking more at U.K. public services, or is it in the U.S. as well?
Sudhir Singh, CEO
We believe healthcare, high-tech public sector will grow on steroids next year. In healthcare, we continue to focus on life sciences, and we continue to focus on payer. Public sector, we continue to focus as we have on U.K. and on Australia public sector largely. We have no plans of approaching the U.S. public sector.
Answered
High priority
Will the mix of large deals shift toward healthcare and public services?
Asked by Vibhor Singhal, Nuvama
CEO gave clear expectations for each vertical's growth trajectory.
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Question
Do you think we could see a mix of more large deals in healthcare and public services maybe going forward? Or do you believe banking, travel, and insurance will continue to remain the forte of our growth?
Sudhir Singh, CEO
We believe that the total number of large deals on an average will go up. Banking is likely to do extremely well. Travel, we think, is likely to do exceptionally well. High-tech, healthcare, and this is all pre-Encora will, we believe, continue to grow on steroids going forward.
Answered
High priority
Timeline for Cigniti merger and Encora acquisition closure?
Asked by Vibhor Singhal, Nuvama
CFO provided specific timelines for both mergers.
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Question
When do you think Cigniti could finally get fully integrated into our numbers in terms of financially? And in terms of Encora also, what is the timeline that you're looking for the shares swap to be executed and thereafter the term loan to be retired?
Saurabh Goel, CFO
Our take is that maybe by March end latest, sometime before our results for sure, we will be able to get the approval for Cigniti merger. When it comes to Encora acquisition, HSR approval is expected sometime in February. And I think by March timeframe, we should be able to get pretty much all the approvals.
Answered
Medium priority
What caused the sharp jump in other expenses in Q3?
Asked by Manik Taneja, Axis Capital
CFO explained the seasonal nature and linked it to milestone-based contracts.
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Question
Is there some sort of a one-time element to the other expenses line item in 3Q? Because that seems to jump up very sharply in 3Q. If you could help us understand that.
Saurabh Goel, CFO
The other cost typically includes a cost related to either if there is any large SI deal, which includes any third-party component. So that cost is included there. And that goes up and down depending upon when a milestone is achieved. It is seasonal.
Answered
Medium priority
What drives sharp moves in segmental margins?
Asked by Manik Taneja, Axis Capital
CFO identified currency and hedge loss allocation as the primary driver.
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Question
If you could help us understand what drives the sharp move across segmental margins on a quarter-on-quarter basis, that will be helpful.
Saurabh Goel, CFO
One is a large impact. One is because of the currency. I think that's the biggest impact that we are seeing because hedge losses get allocated not to the overall revenues, but largely to Americas and Europe.
Answered
Medium priority
How is the Sabre deal progressing?
Asked by Manik Taneja, Axis Capital
CEO gave a positive qualitative assessment without specific metrics.
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Question
Given we've been executing on that through the course of now, I guess, probably about anywhere between six to nine months, if you could help us understand how that is essentially shaping up. Are we on track with regards to some of the product delivery there?
Sudhir Singh, CEO
We would characterize it as it's going swimmingly well. The feedback from them was exceptional. Things are moving exactly where we expected them to be and possibly slightly better than that.
Partial answer
Medium priority
What drove strong growth in India business? Will it reverse in Q4?
Asked by Kawaljeet Saluja, Kotak Securities
CFO attributed growth to third-party cost seasonality but did not describe the nature of deals.
did not specify deal typeattributed to seasonality without details
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Question
First is on the nature of deals that drove strong growth in India. Can you just elaborate on the type of deal that would have contributed to such a large number? And would this end up being a headwind to your growth as you move into 4Q?
Saurabh Goel, CFO
When we look at the other direct cost, it has grown almost 4.5% YoY. And so there was a seasonality. So similar spike in quarter three last year, it happened in the other cost. And it happens in case there is any third-party component which is included as part of the solution to the customer.
Partial answer
Medium priority
What is the hedging policy and average rate of cash flow hedges?
Asked by Kawaljeet Saluja, Kotak Securities
CFO described policy but did not give the average rate of the hedge book.
did not provide average ratementioned revisiting strategy
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Question
What is your hedging policy? And are the hedge losses purely on account of the euro leg of hedging, GBP, or USD? And if that's the case, what's the average rate of cash flow hedge book that you're carrying right now?
Saurabh Goel, CFO
We take 90% of the exposure. We hedge the 90% of the exposure in a respective currency for next quarter, followed by 80, 70, 60. The reason why the hedge losses have come in. It's not because of just dollar-pound. It's because of largely because of dollar.
Answered
Medium priority
How is risk-reward structured in contracts? Is it a contingent liability?
Asked by Dipesh Mehta, Emkay Global
CFO explained that revenue recognition is contained until milestones are met, so no contingent liability.
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Question
You said risk-reward where we are taking a risk of about, let's say, delivering deliverable kind of thing. So can you help us understand how we get the sense about it, whether it would be part of contingent liability about the potential risk which we are taking as a part of contract?
Saurabh Goel, CFO
Typically what we do is we contain the revenue recognition because there is a risk and reward. So we do a balance assessment, and we contain the revenue recognition. And once we pass the toll gate, which is a contractual toll gate, then the revenue gets recognized. So there is no contingent liability in the balance sheet.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Revenue growth 23% YoY in dollar terms. | 23% | 23% | Matches filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.