Order Intake (Q4)
$648M
+16.4% YoY
Total order intake in Q4 FY26; executable order book reached $1.75B.
COFORGE
Information Technology
14 May 2026
Coforge Ltd — Q4 FY26
Coforge delivered a strong FY26 with 29.2% USD revenue growth, driven by broad-based vertical strength (healthcare +98%, travel +62%) and 21 large deal wins.
✓ Verified against BSE filing
2-Min Summary
Coforge delivered a strong FY26 with 29.2% USD revenue growth, driven by broad-based vertical strength (healthcare +98%, travel +62%) and 21 large deal wins. EBITDA margins expanded 430bps YoY to 18.6%, aided by AI-led automation and G&A cost containment. Q4 EBIT margin hit a record 16.6%, up 370bps YoY. The executable order book stands at a record $1.75B, up 16.4% YoY, providing good visibility. Management guided FY27 consolidated EBITDA margins of 20.5-21% and EBIT margins of 15.5% (consolidated) / 16.5-17% (standalone), with FCF/PAT expected at 100%+. A planned exit of ~$20M low-margin India business will temporarily impact Q1 revenue, but overall growth is expected to be robust. Key risk: sustained weakness in the BFS vertical, which grew only 12% in FY26 due to a large client account issue, though management expects improvement.
Key Numbers
Large Deals Signed (FY26)
21
+5 YoY
Includes 11 deals in H2; Q4 alone contributed 5 large deals.
Attrition (LTM)
10.8%
-2.3pp YoY
Among the lowest in the industry; reflects strong employee retention.
Utilization Rate
82.5%
+1.5pp QoQ
Improved sequentially; supports margin expansion without aggressive hiring.
Management Guidance
FY27 Consolidated EBITDA Margin 20.5-21%
Management guided EBITDA margins of 20.5% to 21% for FY27 on a consolidated basis, driven by AI automation, G&A leverage, and Enkora synergies.
marginsFY27 Standalone EBIT Margin 16.5-17%
Standalone EBIT margin expected between 16.5% and 17% in FY27, excluding Enkora amortization.
marginsFCF to PAT at 100%+ from FY27
Free cash flow to PAT ratio expected to be at least 100% from FY27 onwards, up from earlier guidance of 70-80%.
otherQ1 FY27 Revenue Flattish QoQ Due to India Business Exit
Revenue in Q1 FY27 expected to be flattish sequentially due to discontinuation of ~$20M low-margin India business, with growth resuming from Q2.
revenueKey Risks
BFS Vertical Stagnation
BFS revenue grew only 12% in FY26, stuck at ~$120-123M for five quarters due to a large client account issue. Recovery depends on management's refactoring efforts.
medium · analyst_questionHedge Losses Impacting Reported Earnings
Mark-to-market hedge losses of ~₹164Cr for FY26 (₹70Cr in Q4) will continue for 1-2 quarters before tapering, affecting reported other income.
low · analyst_questionAI Deflationary Pressure on Revenue
Industry-wide AI-driven code generation could compress billing rates, though management argues total cost of ownership remains high and managed services will offset.
medium · data_observationNotable Quotes
AI generated code is cheap to build but it is expensive to own. It is expensive to secure and it is expensive to maintain.
We believe the EBIT reset in quarter 4 has been a structural reset. It has come off the back of the automation and AIEL interventions.
The path from pilot to production runs through architecture and delivery, not through model selection.