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Revenue
₹3,986 Cr
verified against source
Revenue YoY
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reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Coforge delivered an exceptional Q2 FY26 with 5.9% sequential constant currency growth and 14% EBIT margin, up 251 bps QoQ. Revenue reached $462.1 million, driven by travel (+6.4% QoQ) and other verticals (+5.9%). The company signed five large deals, with total order intake of $514 million and a record executable order book of $1.63 billion, up 26.7% YoY. PAT margin improved to 9.4% of revenue (+275 bps YoY), and free cash flow was $37 million (86% FCF/PAT). Management reiterated a target of 14% EBIT margin for FY26, prioritizing growth over further margin expansion. AI-driven platforms (Code Insight AI, EvolveOps.AI, BlueSwan) are embedding into delivery, boosting revenue per employee to ~$70,000. Risks include wage hike impact in Q3 (100-150 bps margin drag) and potential furloughs in Q4.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets a reported EBIT margin of 14% for the full fiscal year, with Q4 expected to achieve this level despite wage hike headwinds in Q3.
- Management expects H2 to be a growth half over H1, with Q4 traditionally the strongest quarter, supported by pipeline and deal momentum.
- On a sustained basis, free cash flow to PAT is expected to be around 70-80%, with focus on maintaining this metric.
- Healthcare book of business expected to be near $100 million by end of FY26, with potential separate reporting from Q1 FY27.
Risks flagged
- Annual wage hike effective October 1, 2025, expected to cause a 100-150 bps margin drop in Q3, partially offset by other levers.
- Management expects furloughs at the same scale as previous years, which could affect Q4 revenue sequentially.
- EMEA has seen delays and slowdowns in deal sign-offs, though management expects recovery in the next two quarters.
- Hedge losses doubled to INR 307 million in Q2, creating a 150 bps gap between constant currency and dollar revenue growth.
Key quotes
- Our growth continues to be driven by an execution intensity that is uniquely our own. Execution, we have always believed, is the ability to not just create strategies and share plans, but to actually deliver upon them.
- We believe AI is a clear tailwind for firms that understand the domain and also have an appreciation for how to apply the relevant AI-specific technology.
- Once we hit 14% EBIT, if we manage to hit it this year, we will plan to, at a minimum, clip along at 14% EBIT. Our primary aim will be to make sure that we prioritize growth over any further EBIT improvement.
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