Coforge Ltd — Q4 FY25
Coforge delivered a landmark FY25 with 31.5% USD revenue growth to $1.445B, driven by 14 large deals and a record Q4 order intake of $2.1B.
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.
71%Questions answered1Evaded / deflected12Questions auditedMixedNumbers vs filing
Partial answer
High priority
Will deal win engine pivot permanently to large deals and cost takeouts?
Asked by Abhishek Pathak, Motilal Oswal
Acknowledged pivot but did not answer whether discretionary spend will return.
did not address downturn durationno commitment on discretionary spend
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Question
Would you agree that this is probably going to be an extended period of downturn for the industry? If so, does the deal win engine have to kind of permanently pivot towards large deals and cost takeouts, or is there still room for discretionary and in other areas?
Sudhir Singh, CEO
As far as the pivot towards large deals is concerned, that's a pivot that we've embraced over the years. That is not just a pivot that we've done. That's part of our approach towards sales, irrespective of the macros.
Answered
High priority
How will Sabre ramp-up impact margins short-term?
Asked by Abhishek Pathak, Motilal Oswal
Provided clear assurance that Sabre will not hurt margins and reiterated EBITDA target.
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Question
Could you please tell us how the margins will be impacted in the short term, and how should we model them?
Sudhir Singh, CEO
As far as Sabre margins are concerned, it will not have any downward dip in our margins. Saurabh had guided to the fact that by fiscal year 2027, reported EBITDA will hit 18%. This year, you've seen we're at 16.6%. We will deliver on that pledge.
Partial answer
Medium priority
What are the drivers for next year's deal wins?
Asked by Vibhor Singhal, Nuvama Equities
Listed broad themes but did not specify which segments will drive growth.
no specific segments quantifiedgeneric answer
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Question
What could be the driver, or what segments could you see be the driver of next year's deal wins?
Sudhir Singh, CEO
The drivers, in our case, the two areas we focused on are the same areas that John talked about: transformation and legacy modernization. There is always the cost play out play that we are all always aware of.
Answered
High priority
What is the outlook for the travel vertical given airline profit warnings?
Asked by Vibhor Singhal, Nuvama Equities
Provided balanced view with both risks and strengths, and gave a clear positive outlook.
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Question
How is the environment in that vertical looking like? Going forward, are you seeing some sort of, let's say, uncertainty or delay in decision-making from the airlines specifically?
Sudhir Singh, CEO
It's a mixed bag. On the con side, given the recent change in geopolitics impacting the global economy, we are seeing the travel industry take a more cautious approach. For fiscal year 2026, despite the cons, our outlook on travel is strong.
Answered
Medium priority
Why did OCF jump sharply this quarter and is it sustainable?
Asked by Vibhor Singhal, Nuvama Equities
Explained seasonality and gave a sustainable OCF range.
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Question
Our OCF reported a very sharp jump in this quarter. If you could just take us through that, will this be the, can we expect it to be the ongoing run rate over the next few quarters also?
Saurabh Goel, CFO
This is how, at least structurally, over the last many, many years that our H2 from OCF perspective has been higher than H1. I guess on an ongoing basis, we believe that anywhere between 67%-70% OCF is what we would generate.
Partial answer
High priority
What is the growth outlook excluding Sabre and risk to $2B target?
Asked by Ankur Rudra, JPMorgan
Reaffirmed deal momentum but declined to give a timeline for $2B target.
no timeline for $2Bno specific growth number
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Question
Outside of that, if you can share, how does the overall momentum look like given the environment has probably weakened a bit? If you can, give us any kind of update about the medium-term target of hitting $2 billion in revenues.
Sudhir Singh, CEO
We do not believe that the velocity of large deal closure, and in quarter four, as I just shared, we signed five large deals. Sabre was only one of them. As far as $2 billion is concerned, we would not like to share a timeline.
Answered
Medium priority
How do working days in Q1 affect sequential growth and margin levers?
Asked by Manik Taneja, Axis Capital
Confirmed working day tailwind and explained margin levers clearly.
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Question
If you could help us understand how does the number of working days in April, May, June differ and should be a tailwind to sequential growth in the current quarter?
Saurabh Goel, CFO
When we look at the number of days, yes, there will be leverage coming in. That is why I said that between Q3 to Q4, it was a tough quarter. There were a lesser number of days. Even then, we did a 100 basis point margin expansion.
Partial answer
Medium priority
What is the optimal utilization range and headcount addition outlook?
Asked by Dipesh Mehta, Emkay Global
Gave current utilization but did not specify optimal range or quantify future headcount.
no optimal range givenheadcount outlook vague
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Question
What is the optimal utilization range you are looking for? In the context of headcount addition this quarter where we are expecting some of the large deal ramp-up to play out.
Sudhir Singh, CEO
Utilization, we are at 82% for the quarter. We think that's a good number because in our utilization, we count pressures as well.
Answered
High priority
What is the risk of ramp-down or receivable issues with Sabre?
Asked by Abhishek Kumar, JM Financial
Detailed risk mitigation measures including factoring and insurance.
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Question
Given the financial situation of Sabre, do we foresee any risk of ramp-down or any challenge to receivables or receivable days? If at all, any risk mitigation that we kind of use to protect ourselves?
Saurabh Goel, CFO
We have been working very closely with the leadership team of Sabre. We've also taken non-recourse factoring, and we've also taken a credit insurance policy in case anything unforeseen happens.
Evasive
High priority
Can FY26 growth maintain FY25's 30%+ pace including Sabre?
Asked by Sandeep Shah, Equirus
Declined to confirm whether 30% growth can be maintained.
no number givenrefused to confirm 30%
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Question
Is it fair to assume the growth momentum, what we have seen in FY 2025, which is upwards of 30%, can be maintained in FY 2026 as well?
Sudhir Singh, CEO
We can't give a number-based guidance, Sandeep, but I will just reiterate what we said. We expect very strong growth in FY 2026 as well.
Partial answer
Medium priority
Are customers more open to mid-tier firms for large deals now?
Asked by Vibhor Singhal, Nuvama Equities
Argued Coforge is large but did not directly answer if customers are more open.
no specific pipeline detailsdid not confirm paradigm shift
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Question
Is there a kind of a paradigm shift in which more and more companies like our size are being called for large-cap companies? In your pipeline, are there any more large deals that you are chasing?
Sudhir Singh, CEO
When our size, we believe we are within touching distance. It's a question of which year we touch $2 billion. So we're no longer a small firm. The Sabre deal was one against two of the largest SIs in the world.
Answered
High priority
Update on the client complaint from 18 months ago.
Asked by Abhishek Pathak, Motilal Oswal
Provided detailed update on the complaint and clarified Coforge's role.
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Question
Just very quickly on the client complaint that it's been an ongoing issue for the past, I guess, 18 months. Just a brief update on that and how do we expect to sort of close this.
Sudhir Singh, CEO
The client complaint claims that a hacker tricked service desk agents into resetting employee passwords. The company did not handle core cybersecurity services for the client. The liability amount cannot be determined at this time.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Q4 exit EBIT margin is 13.2% | 13.2% | 18% | Understated vs filing |
| Reported EBITDA for FY25 is 16.6% | 16.6% | 18% | Understated vs filing |
| FY27 revenue target of $2 billion | 2 | 3,422 | Understated vs filing |
| FY27 reported EBITDA target of 18% | 18% | 18% | Matches filing |
| FY27 EBIT guidance roughly 14% | 14% | 18% | Understated vs filing |
| Cignity revenue $220M with 12% EBITDA, now 18% | 220 | 3,422 | Understated vs filing |
| Others vertical grew 67% YoY for full year | 67% | 33.8% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.