Coforge Q2 FY26 Earnings Update

Coforge Ltd. has delivered a strong operational and financial performance in the second quarter of Fiscal Year 2026 (Q2 FY26), with results surpassing profitability estimates and indicating robust momentum. Financial Highlights Net Profit increased 18.4% sequentially to ₹375.8 crore, exceeding the analyst estimate of ₹357 crore. Revenue for the quarter stood at ₹3,985.7 crore, up 8% quarter-on-quarter. Dollar revenue was $462 million, compared to $442 million in Q1. Operating Margin Expansion was a key highlight, with EBIT rising 34% sequentially to ₹560 crore. The EBIT margin expanded significantly to 14%, up from 11.4% in the previous quarter, and outperformed the expected 13.6%. The board declared a fourth interim dividend of ₹4 per share. Growth and Order Book Momentum Total Contract Value (TCV) order intake was strong at $514 million for the quarter, driven by continued success in large deals, with five such deals signed across North America and Asia-Pacific. The executable order book for the next twelve months reached $1.63 billion, marking a substantial 26.7% year-on-year increase, underpinning future revenue visibility. CEO Sudhir Singh highlighted the 8.1% sequential INR growth and the significant YoY increase in the order book, coupled with aggressive sales execution (10 large deals in H1), as drivers for an anticipated "exceptional fiscal '26." Talent and Operational Efficiency Headcount reached 34,896, with a net addition of 709 employees sequentially. The company maintained a highly competitive attrition rate of 11.4%, positioning it among the industry's lowest and reflecting effective talent management and retention. The company's performance—marked by margin expansion, strong order intake, and sustained talent management—demonstrates effective execution and sets a positive tone for the remainder of the fiscal year.