Coforge Shares Drop 6% as Key Client Sabre’s Weak Q2 Results Spark Concerns

Ltd., a midcap IT services company, saw its share price tumble 6% to Rs 1,605 on August 8, 2025, marking its third decline in four trading sessions. The stock has shed over 10% in just four days, triggered by a sharp 35% plunge in the shares of its key client, Sabre Corp, on the Nasdaq. The sell-off followed Sabre’s disappointing quarterly earnings report, which fell short of expectations and led to a significant cut in its full-year guidance. Sabre, a travel technology firm and long-term partner of Coforge under a 13-year agreement, reported lower-than-expected revenue and EBITDA for the June 2025 quarter. The company revised its full-year outlook, projecting Air Distribution Volume growth of only 4–10%, down from an earlier double-digit forecast. Revenue growth is now expected to be flat to low single-digit, compared to the prior high single-digit projection, while adjusted pro forma EBITDA guidance was slashed to $530–570 million from $630 million. Coforge, which supports Sabre in product delivery and AI-powered solution development, reported an 8% revenue growth in constant currency terms for the June quarter. This performance outpaced peers like Persistent Systems and LTIMindtree, which posted constant currency growth of 3.3% and 0.8%, respectively. However, investor concerns over Sabre’s weakened outlook have overshadowed Coforge’s solid results, driving the recent slide in its share price.