IT solutions firm Coforge’s net profit for the fourth quarter of FY26 more than doubled sequentially, led by margin expansion, steady deal wins, and increasing use of artificial intelligence in delivery, even as the broader IT sector shows signs of slowing growth.
The company reported a consolidated profit of ₹612.3 crore ($64 million), compared to ₹250.2 crore ($26.2 million) in the previous quarter.
The strong bottomline was aided by an improvement in margins as well as a one-time deferred tax adjustment linked to the Cigniti merger, with the company indicating that normalised profit for the quarter was lower at around ₹447.3 crore ($47 million).
The company earned ₹4,450 crore ($466.4 million) for the quarter, up 5.2% sequentially, while EBIT margin (signifying operational profitability) rose to 16.6%, marking the company’s highest quarterly profitability.
Coforge said it is betting that AI-led delivery models, agent-based workflows, and outcome-linked pricing can drive both revenue expansion and margin gains at a time when the IT services industry is being reshaped by automation.
The company has also invested heavily in talent, with over 30,000 employees trained in AI and data capabilities, alongside a specialised pool of forward-deployed engineers embedded with clients to drive adoption and execution.
For the full fiscal year, the company posted revenue of ₹16,402.7 crore ($1.72 billion), up 39% year-on-year in rupee terms, while net profit rose 91.6% to ₹1,555.7 crore ($163 million).
Operating performance improved sharply during the year, with EBIT margin expanding 370 basis points to 14.4%, aided in part by efficiency gains linked to AI adoption and tighter execution.
“With an order executable of $1.75 billion, we enter FY27 with strong momentum and confidence. We expect to deliver robust revenue growth in FY27 and plan to deliver an EBITDA of more than 20.5% on a consolidated basis in FY27,” Sudhir Singh, Chief Executive Officer and Executive Director of Coforge, said in a statement.
The company noted that AI-led efficiencies provide a path for further margin expansion in FY27. This comes at a time when IT services firms are grappling with questions around whether AI could compress traditional revenue streams.
Coforge noted that AI is opening up new areas such as data and integration, AI managed services and governance, while also reducing delivery costs.
Deal momentum remained firm in the quarter, with order intake at $648 million and a 12-month executable order book of $1.75 billion, up 16.4% year-on-year. The company also signed five large deals during the quarter, showcasing traction despite macro uncertainties.
Client concentration remains stable, with the top five customers contributing about a fifth of revenue, although these accounts are growing faster than the overall business, suggesting deeper mining of existing relationships, the company noted.
Headcount rose marginally to 35,777, with net additions of 436 employees in the quarter, while attrition stood at 10.8%, among the lowest in the sector.
Coforge’s performance is significant in a quarter influenced by seasonalities and other headwinds, where larger peers have reported weaker growth or cautious outlooks.
Shares of Coforge ended at Rs 1,168 on the BSE on Tuesday, up 1.42%.
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