Coforge Ltd

Q1 FY26IT - Software

Coforge Q1 FY26 earnings call: Revenue & Margins

Q1 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹1,892

Market cap₹80.3K Cr

P/E41.9

Updated23 Aug 2026

Read4 min read

The short version

Coforge achieved a 9.6% sequential dollar revenue growth in Q1 FY2026, with 51.5% YoY growth in constant currency (CC). Coforge expects to deliver 14% reported EBIT in FY 2026. - EBIT margin guidance targets an expansion from Q1's 13.2% to about 14% for the full year; Q2 and Q3 should see operational efficiencies driving margin improvement. - Wage hike impact in Q3 is expected to be largely offset by ESOP cost reductions. - EPS for Q1 was Rs.

From Coforge Ltd's Q1 FY26 earnings-call transcript · updated 23 Aug 2026.

Revenue & Sales Performance

Coforge achieved a 9.6% sequential dollar revenue growth in Q1 FY2026, with 51.5% YoY growth in constant currency (CC).
The company expects the second half (H2) of the fiscal year to be much stronger in sales and revenue compared to H1, driven by large deal closures in Q2 that will translate into new revenue.
Growth momentum is anticipated to continue robustly through Q2 and H2, with confidence in achieving strong YoY growth similar to or better than H1.
Coforge aims to close at least 20 large deals in the current fiscal year, up from 14 last year.
The executable order book for the next 12 months is at a record $1.55 billion, 46.9% higher YoY.

2 more points management made on revenue & sales performance

Profitability & Margins

Coforge expects to deliver 14% reported EBIT in FY 2026.
EBIT margin guidance targets an expansion from Q1's 13.2% to about 14% for the full year; Q2 and Q3 should see operational efficiencies driving margin improvement.
Wage hike impact in Q3 is expected to be largely offset by ESOP cost reductions.
EPS for Q1 was Rs. 9.5 reported, normalized EPS Rs. 9; sustained growth and margin expansion should improve EPS further.
Strong sales execution with 14 large deals last year and a target of at least 20 large deals this fiscal year fuels growth outlook.
Organic quarterly growth of ~6% CC and strong pipeline expected to sustain momentum.

2 more points management made on profitability & margins

See what Coforge Ltd said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Recent capex spike mainly due to a $85 million AI data centre project; $62 million received as advance from client, $23 million funded through a term loan at 3.5% interest.
Data centre assets have a useful life of five years, increasing depreciation.
Capex increase from 2% of revenues to 5% over the past 5 years largely driven by this data centre investment.
Capex expected to taper down to original levels (~2-3% of revenues) in FY2026.
Beyond the data centre project, no plans to significantly increase balance sheet investments in asset-heavy deals, except acquisitions fitting the firm's profile.
Balance sheet leverage will primarily be used for acquisitions, not further data centre investments.

2 more points management made on capital expenditure plans

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Fundraising & Capital Structure

Coforge Limited does not plan further investments in the data centre space; the $85 million data centre capex has mostly been realized ($62 million received as client advance).
Future balance sheet leverage will primarily be utilized for acquisitions that fit valuation and capability profiles.
No material additional asset- or balance sheet-intensive deals related to data centres are expected in the short to medium term.
Capital expenditure, which spiked due to the data centre project, is expected to taper down to normal levels (2-5% of revenues) in FY2026.

2 more points management made on fundraising & capital structure

See what Coforge Ltd said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

The executable order book stands at a record $1.55 billion for the next 12 months.
This represents a 46.9% increase year-on-year from $1 billion a year ago.
Total order intake during the quarter was over $507 million.

2 more points management made on order book & pipeline

Coforge Ltd — Quarterly revenue & net profit

Revenue Net profit

Dec 2024

Mar 2025

Jun 2025

Sep 2025

Dec 2025

Mar 2026

Reported quarterly figures (₹ Cr). Latest: revenue ₹4.5K Cr, net profit ₹666 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.

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What Coforge Ltd's management said in earlier quarters

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Frequently Asked Questions

What were Coforge Ltd Q1 FY26 results?

What is Coforge Ltd share price analysis?

Coforge Ltd currently shows a neutral. The stock trades at a P/E of 41.9 with a market cap of ₹80,257 Cr. Investors should review the full earnings analysis for detailed insights.

Is Coforge Ltd planning capital expenditure?

Recent capex spike mainly due to a $85 million AI data centre project; $62 million received as advance from client, $23 million funded through a term loan at 3.5% interest.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.