Coforge Reports Strong FY26 Results with ₹16,402 Cr Revenue, ₹1,674 Cr Profit

Consolidated Revenue for the year ended March 31, 2026, stood at ₹164,027 million, with Profit After Tax at ₹16,745 million.

Financial Results and Key Filings

Coforge's Board of Directors approved the audited standalone and consolidated financial results for the fiscal year and quarter ending March 31, 2026. The statutory auditors issued an unmodified opinion.

A record date of May 16, 2026, has been set to determine Cigniti Technologies shareholders' eligibility for the proposed 1:1 share exchange ratio following their amalgamation (merger).

The company deferred its dividend proposal to the next meeting due to the ongoing amalgamation process. It also completed the acquisition of Encora US Holdco, Inc. and Encora Holdings Ltd for ₹221,935 million.

Strategic Importance of Acquisitions

The finalization of the Encora acquisition and progress on the Cigniti amalgamation are significant strategic moves for Coforge. These transactions aim to expand its service offerings, geographical footprint, and market capabilities within the competitive global IT services sector.

Background on Strategic Moves

Coforge, a global digital services and solutions provider, recently finalized the acquisition of Encora for ₹221,935 million, a move aimed at enhancing its AI-led digital engineering and data services.

The amalgamation with Cigniti Technologies Limited is progressing towards completion, with the board setting May 16, 2026, as the record date for shareholders to determine eligibility for the 1:1 share swap ratio.

Impact of Recent Changes

Cigniti shareholders will receive one Coforge equity share for every Cigniti share held post-amalgamation, pending regulatory approval.

The Encora acquisition will expand Coforge's footprint, especially in the Americas, and strengthen its capabilities in data, cloud, and AI engineering.

The company will focus on integrating these major strategic transactions to drive value and future growth.

The deferral of the dividend proposal may impact immediate shareholder returns, with a decision expected at the next board meeting.

Potential Risks

A class action lawsuit has been filed against Coforge and its subsidiary over a cybersecurity incident. Coforge disputes the claims, but this legal challenge remains a key area of focus.

Comparison with Industry Peers

For the fiscal year ended March 31, 2026:

• Coforge: Revenue ₹1,64,027 million, PAT ₹16,745 million.
• TCS: Revenue ₹2,33,030 crore, PAT ₹46,078 crore.
• Infosys: Revenue approx. ₹1,68,000 crore ($20,158 million), Net Profit approx. ₹27,600 crore ($3,313 million).
• Wipro: Revenue ₹92,624 crore, PAT ₹13,265 crore.
• LTIMindtree: Revenue ₹22,477 crore, PAT ₹3,375 crore.

Financial Performance Trends

Consolidated Revenue grew to ₹164,027 million in FY26 from ₹145,427 million in FY25.

Consolidated Profit After Tax rose to ₹16,745 million in FY26 from ₹14,704 million in FY25.

Standalone Revenue increased to ₹95,725 million in FY26 from ₹87,138 million in FY25.

Standalone Profit After Tax grew to ₹13,931 million in FY26 from ₹13,084 million in FY25.

What Investors Are Watching

Progress and successful integration of the Cigniti amalgamation post the record date.

Performance and value realization from the newly acquired Encora entities.

Any updates or decisions regarding the deferred dividend proposal from the upcoming board meeting.

Developments and outcomes related to the class action lawsuit filed against the company.