Coforge Ltd

The transcript from Coforge Limited's May 05, 2026 call does not mention any current or future fundraising plans through debt or equity. Key points related to financial position include: - A $550 million dollar loan taken in India to create a natural hedge against receivables, with no stated plans to hedge further. - Net cash improved to $117 million in Q4 FY26. - No discussion or guidance provided on raising new capital via debt or equity. - Emphasis on strong free cash flow generation, expecting free cash flow to PAT ratio to be 100% or more from FY27 onwards. - Deferred tax liability reversal related to Cigniti merger provided a one-time benefit. Therefore, there is no indication of any new fundraising plans through debt or equity in the current disclosures.

- A positive cash inflow in capex was reported due to the sale of assets related to the AI-led data center built in Q1, which were bought back by the client, leading to immediate inflow during the quarter (Page 24). - Coforge is investing in AI transformations, including building pipeline momentum in AI across top verticals, expanding the AI client base, scaling vertical agent workflows (banking, insurance, airlines), and investing in talent upskilling 100% workforce in AI (Page 14). - Focus on automation and AI-led interventions has enabled holding G&A costs constant, indicating ongoing strategic investments in these areas (Page 16). - Coforge plans to continue investing in specialized workforce, including growing a pool of Full-Stack Data Engineers (FDEs) to support AI initiatives (Page 14, 18). - No explicit mention of large future capex projects, but structural investments related to AI, modernization, and talent development are ongoing.

- FY27 is expected to show significant growth, particularly in the banking vertical, after resolving a client-specific issue in FY26. - Overall revenue growth for FY26 was 29.2% in USD terms, with robust contributions across key verticals like healthcare (98%), travel (62%), BFS (12%), government outside India (17.5%), and emerging verticals (27%). - Strong order book and framework agreements, including a signed $150 million UK public sector deal with expected $4-6 million quarterly revenue starting Q1 FY27. - Confident of delivering industry-leading growth in FY27 despite challenging environment. - Top 10 clients grew 40.4%, with diversified industry exposure across BFS, travel, insurance, and public sector. - Confident about broad-based growth across travel, healthcare, banking, insurance, public sector, and new high-tech verticals. - Focus on AI-driven modernization and agentic deployment waves seen as drivers for sustained revenue expansion.

- FY27 expected to deliver robust revenue growth; management confident of industry-leading growth pace. - Consolidated EBIT margin rose to 15.5% in FY26; expected to improve further in FY28, with FY27 threshold as the minimum. - EBITDA margin guidance for FY27 is 20.5% to 21% consolidated; standalone EBIT margin expected 16.5%-17%. - Free Cash Flow (FCF) to PAT ratio to exceed 100% from FY27, up from earlier guidance of 70%-80%. - EPS expected to benefit from reduced minority interest and merger synergies with Cigniti, indicating upside potential. - Banking vertical expected growth in FY27 after client-specific issue resolved; structural demand drivers remain strong across verticals. - AI-led automation and operational efficiencies are structural factors driving margin expansion and improved profitability. - Management highlights a confident outlook for sustainable profitability and normalized effective tax rate of 23%-24% from FY27.

- Executable order book stands at a record **$1.75 billion**, which is **16.4% higher** than the same time last year. (Page 6) - This order book reflects locked orders over the next 12 months. (Page 6) - There are **framework agreements signed** that are nearly assured revenue streams for FY27 and beyond, **not included** in the $1.75 billion executable order book. (Pages 6, 21, 17) - A recent framework deal signed is valued at **$150 million total contract value (TCV) over five years**. (Pages 22, 23) - Expected revenue run rate from this framework deal is **around $4 million to $6 million per quarter starting Q1 FY27**. (Pages 22, 23) - Multiple Statement of Work (SOWs) or TSRs are expected against this awarded framework. (Page 21)