Coforge Limited reports robust FY26 growth with revenue rising 35.9% to INR 164,207 million and PAT soaring 91.6% to INR 15,557 million. The company achieved record free cash flow of $135 million, driven by AI-led efficiencies. Management projects consolidated EBITDA margins between 20.5% and 21% for FY27, signaling sustained operational discipline.
Coforge FY26 Results: Revenue Up 35.9%, Profit Grows 91.6%
Revenue reached INR 164,207 million; Net Profit hit INR 15,557 million.
Reader Takeaway: Strong operational momentum and record cash flows bolster long-term outlook despite margin execution pressure.
What just happened
Coforge Limited has released its sustainability and financial report for FY2025-26, showcasing significant bottom-line expansion. The company reported a 91.6% jump in Profit After Tax (PAT) and a 76.9% increase in EBITDA, reflecting disciplined cost management and delivery rationalization. The exit from low-margin India portfolios and the integration of AI-led efficiencies were cited as primary drivers of this performance.
Why this matters
The financial results highlight Coforge’s ability to scale revenue while aggressively expanding margins. An all-time high free cash flow of $135 million provides the company with the financial flexibility to pursue strategic priorities. Additionally, the clear EBITDA margin guidance for FY27 (20.5%-21%) provides investors with a concrete benchmark to track performance in the coming year.
Environmental and Governance Milestones
Coforge has made measurable progress in ESG, achieving a 76% reduction in Scope 1 and 2 emissions against its FY24 baseline. The company has implemented an internal carbon price of $18/tCO2e to institutionalize climate impact into capital allocation. Governance-wise, the company maintains zero substantiated ethics or privacy complaints and holds a 28% gender diversity ratio across its workforce.
Risks to watch
Investors should monitor the company's ability to maintain the targeted 20.5%-21% EBITDA margin, given the competitive landscape in the IT services sector and the complexities of AI implementation. Success depends on sustained productivity gains and the effective scaling of current delivery models.
What to track next
Watch for the successful integration of renewable energy sources in the remaining campus facilities and progress toward the 2040 net-zero goals. Continued adherence to the FY27 margin targets remains the primary monitorable for institutional and retail stakeholders.