Coforge reported a steady December quarter with revenue from operations for the quarter at ₹4,188 crore, a 5.1% rise over the previous quarter.
Order intake was the key highlight. Coforge signed six large deals during the quarter and reported total order intake of $593 million. Its executable order book for the next twelve months rose to $1.72 billion, up more than 30% from a year ago.
Earnings were stable but margins slipped. EBIT for the quarter was ₹559.4 crore, almost flat sequentially. EBIT margin narrowed to 13.4% from 14% in the September quarter, a contraction of 60 basis points.
In constant currency terms, revenue grew 4.4% sequentially, higher than the 3.5% growth that analysts were working with. Year on year, revenue rose 28.5% in rupee terms and 22.6% in dollar terms.
Net profit, meanwhile, fell 33% to ₹250 crore compared to the previous quarter’s bottom line of ₹375.8 crore. The profits were largely impacted by the IT Labour Codes’ impact of ₹118 crore.
Headcount rose marginally during the quarter, with net additions of 445 employees, taking total staff strength to 35,341. Attrition eased to 10.9%, among the lowest in the sector.
Chief executive Sudhir Singh said the company’s growth pipeline remained strong and pointed to the planned combination with Encora. He said the $2 billion data, cloud and AI engineering core that would emerge after the merger would position Coforge for sustained outperformance over the next few years.
The stock, however, has struggled to find momentum. Shares are down more than 5% over the past one month, reflecting broader caution around mid tier IT and concerns over margin pressure despite healthy deal flow.
